Topic Guide: Public Procurement

Public procurement is an entry point of anti-corruption initiatives, and there are a number of practical tools, international standards and best practices available to curb corruption in procurement. Major approaches to curb corruption in public procurement include[1]:

The legal framework in which procurement takes place is defined by the national and international legislation binding the country. In recent years, a variety of regional and international anti-corruption treaties, such as the UNCAC, have set internationally agreed standards that can be used as a benchmark.

All parties need to be ensured easy access to information throughout the procurement process, especially with regard to tender opportunities, selection criteria, evaluation processes, awarding processes and justification of the decision, terms of the contract and subsequent amendments, implementation of the contract, and the role of intermediaries, among others.

Technology is instrumental to increase transparency and limit the level of an individual officer’s discretion in the process. In particular, e-procurement can contribute to improve market access and competition and mitigate corruption risks by facilitating easier access to information through online publication, standardising and streamlining processes, and facilitating control and oversight over the procurement cycle.

Procurement officials need to meet high professional standards of knowledge, skills and integrity. Adequate remunerations, merit-based recruitment processes and regular training of procurement officials can contribute to promote high standards of professionalism. Procurement processes should also be managed professionally, in a way to ensure that public funds are used in procurement according to the intended purposes. This can be achieved through long-term project and resource planning, public consultations on major procurement projects, separation of key functions, transparent and comprehensive book-keeping and sound reporting systems at all stages of the recruitment process, among others.

The integrity of procurement officials can be promoted by raising ethical standards through the adoption and enforcement of codes of conduct and conflict of interest regulations.

Bidding companies and procurement officials can commit to abstain from bribery and to prevent corruption by signing an integrity pact as a tool to establish a level playing field in a procurement process.

International standards emphasise the importance of monitoring all stages of the procurement cycle, from the preparation of the tender by public officials to the implementation of the contract. In addition to internal monitoring by independent government agencies and external audits, external monitoring by citizens and civil society groups has proved a powerful tool to help detect and deter corruption. A number of organisations have developed red flags, checklists and indicators to assess adherence to the agency’s procurement rules and regulations.

Independent internal control systems and external audits and oversight are instrumental to ensure that government officials are held accountable for their decisions throughout the procurement cycle. This includes establishing effective mechanisms to uncover and investigate corruption, systematic and credible enforcement of the rules and the use of proportionate and dissuasive sanctions, proportional to the price of the contract. Sanctions can include exclusion from the procurement process, confiscation of illegal gains, liability for damage, cancellation of contracts and debarment. Strongest standards require the systematic blacklisting of companies involved in wrongdoings.