Promoting integrity in public procurement: the OECD

1
Promoting integrity in public procurement the
OECDs experience

• Ms. Virginia Tortella and
• Ms. Aniko Hrubi
• Public Governance and Territorial Development
  Directorate
• OECD

2
Why integrity in public procurement matters?

• Key policy instrument (represents 16 of GDP on
  average, in OECD member countries)
• Integrity in public procurement is a powerful
  tool for effective service delivery and as such
  it increases trust in state institutions
• Promotes additional policy aims such as
  environment, innovation or social goals
• It is the government activity most vulnerable to
  waste, fraud and corruption
• Additional risks in current context from crisis
  to recovery billions of dollars in stimulus
  funds spent through accelerated procurement
  procedures

3
OECD RecommendationEnhancing Integrity in Public
Procurement

• 1. Framework of 10 principles anchored in four
  pillars
• Transparency
• Good management
• Corruption prevention
• Accountability and control
• 2. Checklist on how to implement the framework
  through the procurement cycle from needs
  assessment to contract management and payment.

4
Application of OECD Recommendation

• Peer reviews
• Joint Learning Studies Morocco, Yemen, Iraq
• Integrity Reviews Greece, Brazil
• Toolbox
• On-line web based practical tools
• Reporting back on progress
• OECD countries will report back on progress
  implementation in 2011

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The OECD Joint Learning Studies

• Adaptation of the OECD peer review methodology to
  developing countries, including African countries
  
• Assessment of public procurement reforms from an
  integrity and corruption prevention standpoint,
  in line with international conventions
• Mapping out risks to integrity in the entire
  procurement process
• Proposals for action to improve national
  procurement policies and practices

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OECD Joint Learning Studies cont.

• Pilot project Enhancing Integrity in Public
  Procurement JLS on Morocco (2008)
• OECD Benchmark Report on Improving Transparency
  in Government Procurement Procedures in Iraq
  (2008)
• Enhancing Integrity in Public Procurement JLS in
  Yemen (ongoing 2009)

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Public Procurement Toolbox

• What? Living web based document with tools
  tested in actual practice
• Why? To support implementing the OECD Principles
  in national context
• For who? Procurement officials designing and
  developing guidance and procedures to enhance
  integrity in their procurement systems
• How can this Forum contribute? Consultation
  process with a broad group of key stakeholders.
  Scope to include tools that have been effective
  to enhance integrity in procurement systems in
  Africa.

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Examples of Tools

• Direct social control of public procurement
• Inclusion of a reputable non-state actor to
  oversee key stages in the procurement process in
  order to increase trust in the system
• Adopting Integrity Pacts
• Pact between bidders and procurement entities
  that establishes mutual rights and obligations
• Clear ethical standards
• Provide officials with support to stand up
  against political pressures and influence by
  establishing a framework for expected behaviour

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Contact us

• For more information on OECD work on public
  procurement visit our website www.oecd.org/gov/et
  hics/procurement/
• Or contact the OECD Integrity Unit at
  gov.integrity_at_oecd.org