FIGHT AGAINST CORRUPTION IN TURKISH PUBLIC PROCUREMENT SYSTEM Mustafa Çağatay Taşyürek Head of International Relations Department Public Procurement Authority
Content •Introduction •Turkish Public Procurement System •Legislative Framework •Roles of Government, Business and Civil Society in Fighting Corruption •Conclusion
Introduction • Public Procurement accounts for a significant share of gross domestic product of countries (OECD average is 12% of the GDP). • Therefore, an effective, transparent, competitive and sound public procurement system is important in terms of effective use of public resources. • Integrity in public procurement has crucial role in proper spending of taxpayers money. 3
Turkish Public Procurement System Public procurement in Turkey is regulated by Public Procurement Law No. 4734 which entered into force on January 1, 2003. Public Procurement Law has created a modern procurement system in line with international instruments on public procurement (EU Procurement Directives, UNCITRAL Model Law on Procurement, World Bank Procurement Guidelines, etc.). Public Procurement Law no. 4734
Turkish Public Procurement System • Basic Principles of PPL are; Fullfillment of Transparency Reliability Needs Competititon Confidentiality Efficient Use of Resources Equal Public Traetment Supervision Taxpayers’ Expectations
Legislative Framework on Fight Against Corruption in Public Procurement Public Procurement Law no 4734 •Article 5: Basic principles •Article 11: Ineligibility (including conflict of interest) •Article 17: Prohibited acts or conducts •Article 58: Prohibition from participation in tenders •Article 59: Penal liability of tenderers •Article 60: Penal liability of procurement officials Public Procurement Contracts Law no 4735 •Article 25: Prohibited acts or conducts •Article 26: Prohibition from participation in tenders •Article 27: Penal Liability of contractors •Article 28: Penal liability of procurement officials Other Related Legislation •Criminal Code •Law on Declaration of Assets and Fight Against Bribery and Corruption •Law on Establishment of Public Officials Ethics Board •Regulation on Applications Against Procurement Proceedings •Regulation on Ethical Code for Public Officials and Procedures and Principles on Applications 6 •…
Prohibited acts or conducts Article 17 of the PPL • to conduct or attempt to conduct procurement fraud by means of fraudulent acts, promises, threats, unlawful influence, undue interest, agreement, malversation, bribery or other actions, • to prevent participation, to cause confusion among tenderers, to offer or to encourage bid- rigging, to conduct actions which may affect competition or tender decision, • to forge documents or securities, to use forged documents or securities or to attempt those. • to submit more than one tender by a tenderer on his own account or on behalf of others, directly or indirectly, as the principal person or as representative of others, unless submitting alternative tenders is allowed. • to participate in procurement proceedings although ineligible pursuant to Article 11. 7
Liability of Public Officers Article 60 of the PPL Where it is established that procurement officers, members of the tender commissions and other related persons assigned at any stage of the procurement proceedings have committed acts specified in Article 17 or have failed to fulfil their duties impartially or in accordance with the legal requirements or have been involved in culpable or negligent acts which cause damage on one of the parties ; they shall be subject to disciplinary punishment, depending on the nature of their acts or conducts, they shall be prosecuted, in addition to the punishment ordered by the court, they shall compensate for damage inflicted upon the parties, If they are found guilty, they shall not be assigned to any duty within the scope of the PPL. 8
Liability of Economic Operators Those who are involved in prohibited acts specified in Article 58 of PPL Article 17; • shall be prohibited from participating in public procurement for at least one year and up to two years Those who are involved in prohibited acts specified in Article 59 of PPL Article 17 which also constitutes a criminal offence; • shall be reported to public prosecutors, • cannot participate in the procurements until the end of judicial proceedings. • if they are found guilty, they shall be further prohibited from from participation in the procurement proceedings up to 3 years in addition to the principal punishment given by the court. Prohibition from participation in public procurement covers, • All shareholders of the prohibited company if it is an unlimited company • Majority shareholder of prohibited company if it is a corporation • Unlimited companies whose one of shareholders is prohibited • Corporations whose majority shareholder is prohibited 9
Role of Goverment in Fighting Corruption Public Procurement Authority • Public Procurement Authority (PPA), which was established in 2002, is a regulatory and supervisory body in public procurement area. • PPA has administrative and financial autonomy. • It is independent in fulfillment of its duties. Nobody can issue orders or instructions for the purpose of www.kik.gov.tr influencing the decisions of the Authority. • PPA is assigned and authorized for the accurate implementation of the principles, procedures and acts specified in the Public Procurement Law. 10
Public Procurement Authority Main Duties of the PPA Secondary Review & legislation Remedies Gathering International Information, Training E-Procurement compling statististics Relations and keeping blacklist • The PPA has duty to review complaints submitted by tenderers, potential tenderers and candidates claiming that the proceedings carried out by the contacting authorities are in violation of the Law and the related legislation.
Fight Against Corruption in Public Procurement Other Key Government Bodies for Fight Against Corruption in Public Procurement External: Internal to Contracting Authority: - The Court of Accounts - Internal auditors - Public Officials Ethics Board -Inspection boards - Ombudsman - Courts and Prosecutors - Parliament 12
Role of Business and Civil Society Public procurement involves It is important that business, contracting authorities, government and NGOs work suppliers and end users. together to prevent Therefore integrity is not a corruption in public requirement for public procurement. officials alone. Integrity in public procurement can be promoted through involving stakeholders, such as business organisations, civil society, media and the general public, in public procurement and ensuring continuous dialogue with them. 13
Role of Business and Civil Society Transparency in procurement is necessary to fight corruption because monitoring by stakeholders helps to reveal and prevent corruption • General public must have access to information in a timely manner and information must be comprehensive enough to monitor public procurement effectively. In addition, NGOs and public should be able to raise concerns about procurement proceedings. • Sound whistleblowing mechanisms facilitates reporting of corruption and helps to reduce corruption risk. Internal measures taken by business helps to prevent corruption. Some suppliers have their own integrity systems to conduct business in a fair, ethical and legal manner • Such integrity systems typically include measures such as code of business conduct, internal and external audits, accounting measures and integrity trainings. 14
Integrity in Public Procurement > Main Tools to Provide Transparency and Stakeholder Participation in Turkish Public Procurement System; Electronic Public Procurement Platform Complaints and other submissions in writing or in electronic form Right to Information Act and BİMER (which is e-submission system in Prime Ministry’s website) Meetings and workshops with stakeholders Press Meetings Forum on PPA’s website where people can express their opinions, criticisms or recommandations 15
E-Procurement The Electronic Public Procurement Platform (EKAP) was put into use on 1 September 2010 in order to make procurement process easier and increase competition and transpareny . •2004 Receiving Contract Notices by e-mail •2005 Public Procurement Platform was established •2008 Articles related to EPPP was added to the Public Procurement Law •2009 The studies and facilities to establish EPPP has started History •2010 EPPP (Electronic Public Procurement Platform) became operational. •Publication of electronic contract notice and contract award notice, •Preparation and publication of tender document and downloading it, •Conducting or registering procurement transactions on EPPP (e.g. drafting tender evaluation records) •Black list confirmation, Tender Search, Tender Status, Data Collection and Storage, Main Main •Electronic inquiry of information such as tax liabilities, balance sheets, income statements, social Achievements security premium debts of tenderers. •Electronic notification to economic operators •Electronic submission of bids in some public contracts •Make electronic submission of bids more common Target 16
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