Options for Reducing Corruption in Procurement: The Case of the Construction Options for Reducing Corruption in Procurement: The Case of the Construction Sector in Zambia Sector in Zambia WHY THE ANTI-BRIBERY MANAGEMENT SYSTEMS BRIBERY MANAGEMENT SYSTEMS STANDARD (ZS ISO 37001)? STANDARD (ZS ISO 37001)? Presenter: Presenter: Dr. Mukombo Tambatamba Dr. Mukombo Tambatamba ZS ISO 37001 Presentation to ZPPA Management: 17 th October 2017, ZS ISO 37001 Presentation to ZPPA Management: 17 ZPPA ofiices, Lusaka
PRESENTATION OUTLINE PRESENTATION OUTLINE • The problem of corruption • Study findings • Interventions • Why the anti bribery management systems standard Why the anti bribery management systems standard
THE PROBLEM OF CORRUPTION THE PROBLEM OF CORRUPTION • 40% of bribery cases occurred in construction, transportation, cases occurred in construction, transportation, and information and communication (OECD,2016). communication (OECD,2016). • Illegal payoffs increase the cost and lower the quality of public payoffs increase the cost and lower the quality of public works projects by as much as works projects by as much as 30-50% (Wade, 1982). • The Governance Secretariat Survey (2010) Governance Secretariat Survey (2010) revealed that 59.9 percent of the population thought that the government of percent of the population thought that the government of Zambia had performed poorly in the construction sector Zambia had performed poorly in the construction sector because of corruption and other unethical behaviour. because of corruption and other unethical behaviour.
STUDY FINDINGS STUDY FINDINGS Corruption Corruption 2% 2% 2% 2% Very serious problem 28% Serious problem Not a very serious problem 64% Not a serious problem Not a problem Don't know
STUDY FINDINGS STUDY FINDINGS Propcurement phase Type of corruption corruption Procurement Planning Bribery (26%), Kickbacks Kickbacks (25%), Tailored specification (24%) Requirement definition Tailored specification specification (36%), Kickbacks (24%), Collusion (22%) and Specifications Tendering/Sourcing Bribery (48%), Bid Bid-rigging (40%), Kickbacks (40%) Evaluation and Selection Kickbacks (43%), Bribery Bribery (43%), Concealment of documents (39%) Negotiation and Contract Kickbacks(44%), Changes Changes in original contract(36%), Bribery (34%) Awarding Contract Implementation Duplicate payments payments (44%), Pilferage of public resources (42%), False invoices or claims ( (40%)
INTERVENTIONS INTERVENTIONS • A number of interventions in reducing corruptions have been A number of interventions in reducing corruptions have been proposed by the study: • Statutory instrument • The Construction sector Anti The Construction sector Anti-Corruption Advisory Forum (CACAF) • Monitoring and Evaluation Monitoring and Evaluation Framework • The Anti-Bribery Management Systems Standard (ABMS) Bribery Management Systems Standard (ABMS)
WHY THE ANTI-BRIBERY MANAGEMENT BRIBERY MANAGEMENT SYSTEMS STANDARD (ZS ISO 37001)? SYSTEMS STANDARD (ZS ISO 37001)? Bribery is widely acknowledged as a significant business risk in the Bribery is widely acknowledged as a significant business risk in the construction sector. Zambia has signed a number of international treaties requiring it to Zambia has signed a number of international treaties requiring it to implement anti-bribery laws and procedures bribery laws and procedures The United Nations Convention against Corruption (2003) The United Nations Convention against Corruption (2003) – Bribery prevention is increasingly seen as a management issue. Bribery prevention is increasingly seen as a management issue. Good management in government, in companies and on projects can Good management in government, in companies and on projects can materially reduce bribery.
WHY THE ANTI-BRIBERY MANAGEMENT BRIBERY MANAGEMENT SYSTEMS STANDARD (ZS ISO 37001)? SYSTEMS STANDARD (ZS ISO 37001)? Organisations are now requiring proof that their own organisation, Organisations are now requiring proof that their own organisation, and their clients, agents, joint venture partners, and major sub and their clients, agents, joint venture partners, and major sub- contractors, suppliers and consultants have implemented adequate contractors, suppliers and consultants have implemented adequate anti-bribery measures. This led to a call for a standard which provides minimum This led to a call for a standard which provides minimum requirements and allows independent verification. requirements and allows independent verification.
WHY THE ANTI-BRIBERY MANAGEMENT BRIBERY MANAGEMENT SYSTEMS STANDARD (ZS ISO 37001)? SYSTEMS STANDARD (ZS ISO 37001)? • ISO in 2013 established a Project Committee to publish a new ISO in 2013 established a Project Committee to publish a new ISO anti-bribery management system standard, ISO 37001. bribery management system standard, ISO 37001. ISO 37001 was published on 15 th October 2016. • ISO 37001 was published on 15 • Zambia has adopted this standard as ZS ISO 37001 Zambia has adopted this standard as ZS ISO 37001
WHY THE ANTI-BRIBERY MANAGEMENT BRIBERY MANAGEMENT SYSTEMS STANDARD (ZS ISO 37001)? SYSTEMS STANDARD (ZS ISO 37001)? • ZS ISO 37001 is intended to help an organisation to implement ZS ISO 37001 is intended to help an organisation to implement an effective anti-bribery management system. bribery management system. • It requires organisations to implement various anti It requires organisations to implement various anti-bribery measures on a reasonable and proportionate basis according to on a reasonable and proportionate basis according to the type and size of the organisation, and the nature and extent the type and size of the organisation, and the nature and extent of bribery risks faced. • Can be used as project pre-qualification requirement. qualification requirement.
COMPLIANCE AND CERTIFICATION COMPLIANCE AND CERTIFICATION
THANK YOU FOR YOUR ATTENTION THANK YOU FOR YOUR ATTENTION
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