TRANSPARENCY INTERNATIONAL INDONESIA Integrity Pact - A powerful tool for the People to promote clean bidding www.ti.or.id www.transparency.org
TRANSPARENCY INTERNATIONAL INDONESIA Concept Tool to PREVENT and fight corruption in public contracting – Contract/binding agreement: LEGAL COMMITMENT – anti bribery in particular processes – PROCESS to ensure transparency, level playing field Participants – Government & Bidders (signatories) – Civil Society (facilitator/independent monitor)
TRANSPARENCY INTERNATIONAL INDONESIA Concept • Range • The whole cycle of the contracting process (from contract design to execution) • All types of public contracts (procurement, licensing, privatization, concessions, complex contracts) • All types of sectors • Could be used private to private
TRANSPARENCY INTERNATIONAL INDONESIA Characteristics • Flexible but consistent: allows adaptation to local rules/culture while maintaining essential characteristics • Requires political will/commitment for success + “ appropriate situation ” • Essential & highly desirable Elements
TRANSPARENCY INTERNATIONAL ELEMENTS INDONESIA • Not to bribe • Not to collude • To disclose information • Not to demand/accept Undertaking of public THE INTEGRITY PACT INVOLVES: regarding payments bribes officials and bidders • To disclose all relevant • Civil, criminal, administrative information Sanctions • Must be trusted by all PROCESS: OPEN sanctions for staff • To guarantee protection • Alternative resolution • Reviews and provides expert Arbitration AND TRANSPARENT • Loss of Contract of restricted information feedback on all documents and mechanism Expert Independent COMPETITION • Loss of bid/performance bond steps of procurement process • Often allows for more expedite Monitoring (C.Soc.) • Liability for Damages (to principal • Monitors access to Information decision that judiciary Company‘s Code of Conduct and competitors) • Hears of eventual complaints by • Operational features defined in & compliance program FORMAL PACT • Debarment/Blacklisting bidders advance increase sense of Disclosure of payments • Informs Publicly & to authorities ownership and empowerment to Middlemen • Contributes to raise overall Monitoring Contract Use of Internet and Disclosure of assets confidence in the process Execution Public Hearings by public officials
TRANSPARENCY Why implement an IP? INTERNATIONAL INDONESIA • As Public Official – Allows to abstain/control corrupt practices – Help increase credibility and legitimacy when honestly concerned about corruption and transparency problems – Make work easier. The process has support from the outset . – Reduces unnecessary complaints/trials. – Saves public money/Increases value for money – Increased product quality of project
TRANSPARENCY Why implement an IP? INTERNATIONAL INDONESIA • As Private Bidder – Allows bidders to abstain from paying bribes - addresses the prisoner’s dilemma – Levels the playing field – Can become a collective action tool – Makes bidding process easier by adding transparency – Reduces transaction costs: corruption is not free of charge or cheap. Winning and loosing fairly is cheaper
TRANSPARENCY Why implement an IP? INTERNATIONAL INDONESIA • As NGO (Civil Society) – Effective and efficient way to generate changes by contributing to better results – bring in expertise with independence – Support increased trust & credibility on public procurement - defend public interest – Contribute to generate long term change, strenghthen checks and balances in procurement – Contribute to increased citizen participation and better service delivery
TRANSPARENCY Why implement an IP? INTERNATIONAL INDONESIA • As anyone interested in better government performance – A way to start from facts and not theory or law : „roll up slieves“ to change actual behaviour. – A way to improve aid effectiveness and contribute to deliver better services to the poor
TRANSPARENCY INTERNATIONAL INDONESIA Experience • Applied in more than 15 countries around the World (Africa still a challenge) • > 300 monitored IPs • 10+ years experience/ continuous improvement • Reported results on contract savings (10%- 60%), bidders increased confidence, decreased complaints, impact on procurement law.
TRANSPARENCY INTERNATIONAL INDONESIA Broad TI’s IP experience Sectors and Areas of Work • Telecommunications Countries • Public works • Argentina • Transportation • Colombia • Ecuador • School supplies • Italy • Office supplies • Latvia • Germany • Utilities • Korea • Services • Mexico • Nepal • Tourism • India • Police supplies • Pakistan • Paraguay • Local government • Indonesia • Finance • Information systems 15 + countries
TRANSPARENCY Some of the current INTERNATIONAL INDONESIA Applications • Argentina (public hearings) • Italy & Indonesia (local governments) • Mexico (different types of contracts) • Pakistan & India (MOUs) • China (sector policy) • Germany (complex construction contracts) • Colombia (evolution - Industry agreements)
Our Effort Areas….. TRANSPARENCY INTERNATIONAL INDONESIA
TRANSPARENCY Civil Society Movement on INTERNATIONAL public Procurement INDONESIA
TRANSPARENCY Civil Society Movement on INTERNATIONAL public Procurement INDONESIA
TRANSPARENCY INTERNATIONAL INDONESIA Thank you hyulianto@ti.or.id haniyulianto@yahoo.com mrozo@transparency.org www.transparency.org www.ti.or.id
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