www.transparencyindia.org Transparency International India - PowerPoint PPT Presentation

www.transparencyindia.org

Transparency International India  Transparency International-India is the accredited Indian National Chapter of Transparency International. It was established in 1997.  Transparency International India endeavors to eradicate corruption by promoting and supporting transparent and ethical practices in governance in collaboration with government, business groups, corporate and civil society organizations.  Acknowledging the vastness of the country, TI India has established its Chapters in several States for effective drive against corrupt practices. Besides, TI India endeavors to extend its reach by collaborating with like minded civil society organizations and creating more chapters with those demonstrating their determination, diligence and competence to combat corruption. However, the major challenge is the identification of transparent partners having credible integrity.

Projects  Integrity Pact  Development Pact  Pahal  ALAC

What is an Integrity Pact  Formal Agreement between government authority and bidders /beneficiaries for public contracts/funds disbursement – Establishes rights and obligations between parties – Provides enforceable sanctions in case of violation  Process occurring during all stages of procurement – Increased Transparency – Independent External monitoring – Detection of risks/red flags, facilitating corrective measures  Applicable to all sectors & types of contracts

What is the Integrity Pact for? Objectives:  enables companies to abstain from bribing and malpractices – level playing field: discourages others from corruption/malpractices – authority curbs corruption/extortion  enables governments to reduce high costs and distorting impact of corruption, to achieve social, economic and development goals  builds up public confidence on the procurement /disbursement system and the government/authority and improves reputation and image  improves investment climate

Conditions Necessary for Success  Political will of authority to reduce corruption and promote integrity  Maximum transparency via public access to relevant information  Third party independent monitoring to verify fulfillment of obligations by the parties, to provide trusted channel for complaints and to facilitate stakeholder involvement  Multi-Stakeholder Involvement by Civil Society Organizations, government and private companies

Need for Integrity Pact in India  India is perceived to be among the most corrupt countries. It ranked 85 th among 175 countries in CPI-2014. It is at the 19 th position in BPI among the 22 major exporting countries  Such corruption results in major drain of valuable resources. It impedes the development process, corrodes the moral fiber of the society and affects the BPL most.  Large scale corruption occurs particularly in Government and PSUs’ procurement programs and works’ contracts, mostly those funded by international financial institutions.  It is felt that the higher the level of corruption in an organization, the greater will be the resistance to IP Program as it directly affects the financial interests of corrupt officials

Efforts to adopt IP CVC Circular – CVC issued ‘Standard Operating Procedure’ on May 18, ‘09 (appending copies of its earlier circulars of 4 Dec., ‘07, May 19, ‘08, Aug. 5, ‘08, etc.) laying guidelines for IP’s adoption. Ministry of Finance and Ministry of Public Enterprises have issued office memorandum recommending adoption of Integrity Pact in their department (July 2011) DP&T vide its Circular No. 372/13/2009-AVD-III dt. 16.6.09 suggested to all State Chief Secretaries to consider IP adoption in respect of SPSUs Second Administrative Reforms Commission - Following the TI India’s presentation on Dec 1 st , 2006, the 2 nd Adm. Reforms Commission in its IV Report on ‘Ethics in Governance’ has recommended the adoption of IP. Prime Ministers address for CBI and State Anti-Corruption Bureaux [ 26 August 2009 ] at Vigyan Bhava

Integrity Pact in India  Ministry of Defence : In its 2008 Procurement Policy, it has proposed to adopt IP in defense deals of Rs 100 crores and above, and Rs 20 crores in its Enterprises  So far, 48CPSUs one state PSU and one Municipal Council are committed to adopt IP both in letter and sprit – Oil & Natural Gas Corp.- being the first (April 17, 2006). List includes IOCL, CIL and its subsidiaries , BPCL, HPCL, SAIL, NTPC, BHEL etc. 

Advantages of Integrity Pacts  Feasible - IPs can often be implemented without legislative reforms  Collaborative - Built on trust and support among parties  Preventive - Tackles corruption risks from the outset  Inclusive - Involves Civil Society as active contributor and as channel to increase legitimacy and public trust in authority/government  Saves costs  Saves time – Faster processing of bid and contract, reduces frivolous interventions and false complaints

Possible risks of Integrity Pacts  Corruption not 100% ruled out – Effective detection and enforcement mechanisms by relevant agencies also needed  Misused as window dressing – Independent External Monitoring is crucial  Increased costs and delays – If properly implemented, costs and delays due to lack of transparency, corruption and malpractices are minimised  Violation of confidentiality and intellectual property – Protection and remedies provided in IPs

Project Cycle: when & where can IPs work best • There are contracts at Policy Making/ Contracts Project Planning different phases • Each contract faces particular risks Project Design Contracts • IPs should be used at earliest possible phases, corruption/malpractices are possible at every Project Implementation Contracts phase, and effects can multiply with later phases Operation Contracts Taken from : How to implement IPs in the Water Sector, a guide for government officials, by Juanita Olaya

When & where can IPs work best? Preparation • IP should cover all Phase, phases of organisation Needs Assessment & Bid Identify Demand procurement Documents Preparation /disbursement process • If not possible, Procurement should start – latest – Process Contractor with invitation to bid Final Selection, Accounting, Contract Award & Audit • In this case, Signing independent vetting of bidding documents is crucial Contract Execution

Why implement an IP?  As Public Official – Saves public money/Increases value for money and quality – Helps increase credibility and legitimacy of the process – Reduces unnecessary complaints/problems.  As Private Bidder – Levels the playing field – Obligations and responsibilities are upfront and transparent – Protection against corrupt, illegal and improper demands – Trusted channel for complaints

Why implement an IP?  As NGO (Civil Society) – Opportunity to participate in short and long term changes by contributing to integrity in public procurement – Support increased trust & credibility on public procurement - defend public interest  As anyone interested in better government performance (eg Donors) – A �ay to start fro� fa�ts a�d �ot theory or la�: �roll up slee�es� to �ha�ge a�tual �eha�ior – A way to improve aid effectiveness and contribute to deliver better services to the needy and deserving

Elements – Parties & Roles • Not to demand/accept bribes Public Commitments • To disclose all relevant information • To guarantee protection of restricted information Authority • Use of Internet and Public Hearings • Reviews and provides expert feedback on all documents and steps of procurement process Independent • Monitors access to information Role Monitor Integrity Pact • Deals with complaints by bidders (CSO) • Keeps public & authorities informed • Contributes to raise overall confidence in the process • Not to pay bribes, facilitation payments, etc. Bidders • Not to collude with other bidders Commitments Contractors • Disclose information on payments to middlemen • Code of conduct & compliance program

Elements – Enforcement Mechanisms Sanctions  Civil, criminal, administrative sanctions  Loss of contract  Forfeiture of bid security/performance bond(s)  Liability for damages (to principal and competitors)  Debarment/Blacklisting

Implementation Arrangements (1) Memorandum of Understanding Civil Society Public Organisation Authority (NGO) Monitoring Contract Monitor NGO undertakes most implementation activities

Implementation Arrangements (2) Memorandum of Understanding Civil Society Organisation Public Authority (NGO) Monitor Monitoring Contract Authority undertakes most implementation activities

Qualities of a good monitor  Independence and commitment – Objective monitoring with public good as guidance – Strength of character and impeccable behaviour  Expertise – Adds value to the project and better equipped to uncover corruption/malpractices  Capacity – Individual monitor or organization, depending on project  Accountability – Accountable to all parties and the public in varying degrees