Openness Forum May 23-25, 2017 Kyiv, Ukraine UNCITRAL Perspective - - PowerPoint PPT Presentation

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Openness Forum May 23-25, 2017 Kyiv, Ukraine UNCITRAL Perspective - - PowerPoint PPT Presentation

Oct 09, 2023 229 likes •438 views

UNCITRAL United Nations Commission on International Trade Law 13 th Procurement Integrity Management and Openness Forum May 23-25, 2017 Kyiv, Ukraine UNCITRAL Perspective on Curbing Corruption Caroline Nicholas UNCITRAL Secretariat May 2017

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UNCITRAL

United Nations Commission on International Trade Law

13th Procurement Integrity Management and Openness Forum May 23-25, 2017 Kyiv, Ukraine UNCITRAL Perspective on Curbing Corruption

Caroline Nicholas UNCITRAL Secretariat May 2017

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UNCITRAL

United Nations Commission on International Trade Law

Enduring problems in public procurement “[G]overnments have in the past with few exceptions notoriously failed as

  • purchasers. [...] Dealers complain of red

tape which hampers them in bidding, in delivering goods and in securing the payment of bills. Government executives themselves complain of delays between the issue of purchase acquisitions and the availability of goods for use. Citizens generally are prone to assert that graft and political favouritism taint a large part of government purchasing.”

UNCITRAL Perspective on Curbing Corruption

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UNCITRAL

United Nations Commission on International Trade Law

What is corruption? “The abuse of public or private office for personal gain”

UNCITRAL Perspective on Curbing Corruption

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UNCITRAL

United Nations Commission on International Trade Law

  • “Corruption is one of the

most toxic impediments to efficient and effective investment.”

  • Angel Gurría, OECD

Secretary-General, 2015 OECD Integrity Forum

UNCITRAL Perspective on Curbing Corruption Impact of corruption

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Some numbers and context …

  • WBI estimate: systemic corruption means 20-30%
  • f public procurement wasted
  • OECD estimate: public procurement averages

13.8% GDP

  • EU estimate: EUR 120 bn p.a. (20-25%) losses
  • Bandiera, Prat, and Valletti (CONSIP):

“Government spending in Italy - inefficiency vs. corruption”

  • Passive waste – 80%
  • Active waste – 20%
  • In OECD countries: 1% saving in public spending = 43 billion EUR per year
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Corruption prevention strategies

  • Sound legal framework (UNCAC article 9)
  • “appropriate systems of procurement, based on transparency,

competition and objective criteria in decision-making, that are effective, inter alia, in preventing corruption” More detailed rules are needed to implement the UNCAC principles

  • UNCITRAL Model Law is fully UNCAC-

compliant

  • ERBD-UNCITRAL Initiative, among
  • thers, to advise national governments
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

A sound legal framework

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UNCITRAL

United Nations Commission on International Trade Law

http://uncitral.org/uncitral/en/uncitral_texts/procurement_infrastructure. html

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

UNCITRAL safeguards

  • Publicity of legal texts
  • Publicity of all the ‘rules of the game’ in advance
  • Rules on communications
  • Award criteria and procedures
  • Competitive, objective processes
  • Exhaustive record keeping
  • Notification of award
  • Standstill notice
  • Publicity of award
  • Notification and publicity of all other decisions
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Legal “red flags”

  • 1. Insufficient transparency
  • Subjective criteria (“reputation”)
  • Failure to require full disclosure of award criteria
  • Sub-criteria and weightings
  • Exceptions to notice requirements (“urgency”, “clarifications”)
  • Many exceptions
  • 2. Excessive transparency and collusion /bid

rigging?

  • Pre-bid conferences
  • Results of pre-qualification
  • Details of evaluation
  • Two-stage tendering
  • Framework agreements
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Exhaustive record requirements - UNCITRAL

  • Legal requirement for a procurement record
  • All major decisions to be explained
  • Procurement method
  • Qualification, evaluation criteria
  • Socio-economic criteria
  • These tools allow non-compliance and

corruption to be visible and investigated

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Limitations of legal framework

  • Covered: Selection process, but
  • Thresholds
  • Exempted sectors (defence)
  • Often not covered
  • Planning, contract management, oversight
  • Sometimes not covered
  • Compliance programmes for suppliers (integrity pacts

etc)

  • Sanctions and debarment
  • Interaction with other areas: e.g. culture,

workload, professionalization, training, performance appraisals, incentives for identification of corruption/collusion, etc

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Using the procurement record effectively (1)

  • Including planning and contract management
  • Who can see the information?
  • Confidentiality and timing concerns
  • Facilitating challenges and oversight
  • Impact on ….
  • Collective action
  • Include private companies, academia
  • Civil society
  • Whistleblowing
  • “Excessive transparency”?
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Ongoing reluctance in some countries to publish procurement contracts

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Using the procurement record effectively (2)

  • Data
  • How to make data accessible?
  • Example: “Open Contracting Data Standard”
  • Structured, standardized, open data & documents
  • Searchable (cf pdfs …)
  • Can identify questionable practices
  • All 3 phases of procurement cycle
  • Can identify patterns across

procurements

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

Examples … AND Paraguay, Mexico City, Nigeria, the UK, Colombia, Mexico, Taiwan and Moldova

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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

  • Publish early, and iterate: improving disclosure step-by-step
  • Simple and extensible JSON structure
  • Publish data for each step of the contracting process
  • Create summary records for an overall contracting process
  • Re-useable objects: organisations, tender information, line-

items, amounts, milestones, documents etc.

  • Recommended data and documents at basic, intermediate &

advanced levels

  • Common open data publication patterns
  • Guidance on improving data collection and data quality
  • A growing community of users and range of open source tools
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UNCITRAL

United Nations Commission on International Trade Law

UNCITRAL Perspective on Curbing Corruption

  • Many research and practical tools available …
  • ACRN - Anti-Corruption

Research Network

  • http://corruptionresearch

network.org

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UNCITRAL

United Nations Commission on International Trade Law

Corruption in Public Procurement

For more information

Website:

– http://www.uncitral.org/uncitral/uncitral_te xts/procurement_infrastructure.html

Contact:

caroline.nicholas@uncitral.org THANK YOU