Preventing fraud and corruption in public procurement

Transcription

1 Preventing fraud and corruption in public procurement CRIM, European Parliament 24 September 2012 Brussels János Bertók Head of division Public Sector Integrity OECD

2 Data on trends in procurement Size of procurement market makes more vulnerable to fraud and corruption Although recent procurement reforms focus principally on transparency, limited information is available on key aspects Transparency and integrity measures focus on selection phase, although definition of needs is most vulnerable in big projects

3 General government and state-owned utilities procurement as a percentage of GDP (2008) Netherlands Czech Republic Slovak Republic Hungary Austria United Kingdom Sweden Poland Estonia France OECD34 Portugal Germany Finland Iceland Slovenia New Zealand Ireland Denmark Spain Belgium Israel Luxembourg Italy Japan Canada Australia Korea United States Norway Turkey Greece Chile Switzerland Mexico 0% 5% 10% 15% 20% 25% 30% General government procurement State-owned utilities Source: OECD Government at a Glance 2011

4 Transparency is the primary objective of public procurement reforms Enhance transparency in public procurement (e.g. clear and transparent public procurement rules, consistent information on public procurement opportunities, recording) Improve the management of the public procurement function (e.g. organisation of the procurement institutional structure, procurement planning, capacity, knowledge and skills of procurement professionals) Strengthen accountability and control mechanisms (e.g. strengthen internal control and audits, oversight institutions, or remedy and review systems) 14.3 Prevent misconduct, ensure compliance and monitor procurement (e.g. integrity standards for the public and the private sectors, risk management strategies, anticorruption training, effective sanction system) 7.1 Use public procurement to support complementary objectives (e.g. stimulate innovation, green) 3.6 Other 3.6 Source: OECD

5 Public availability of procurement information at the central government (2011) Laws and policies 100% General information for potential bidders 76% 21% Selection and evaluation criteria 62% 32% Contract award 62% 38% Specific guidance on application procedures 56% 38% Tender documents 53% 15% 29% Procurement plan of anticipated tenders 50% 41% 9% Justification for awarding contract to selected contractor 38% 29% 21% 12% Contract modifications 32% 21% 29% 18% Tracking procurement spending 18% 18% 15% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Always Upon request Sometimes Not available Source: OECD Government at a Glance 2011

6 Most common services offered by the single-entry procurement website (2011) Searching for tender announcements Downloading all documents related to tenders Statistics and database related to past procurement Two-way communication with citizens, bidders and general public Electronic submission of bids Tracking record of outcomes of contracts Online training materials for procurement staff Prequalification systems Electronic reverse auction E-catalogue Contract management plan templates Electronic payment schemes (e.g. e-invoicing) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of OECD member countries with single-entry procurement site Source: OECD Government at a Glance 2011

7 Integrity measures at each stage of the public procurement cycle Not required Source: OECD

8 Comparative data on disclosure Level of disclosure of private interests by officials in selected risk areas (Government at a Glance, 2011)

9 Requirements to minimise the risk of fraud or corruption An assessment is carried out on the positions/activities where procurement risks may arise It is ensured that the following functions are handled by different employees: recommendation of award, issue of purchase orders, certification of the receipt of goods and services, and payment verification Reviews are conducted at key stages of the procurement process depending on the value, complexity and sensitivity of the public procurement Internal guidelines define obligations for internal reporting Managers are held accountable for project management The level of authority for approval of spending, sign off and approval of key stages is defined Not required Required by some ministries/departments Required for all ministries/departments Pe rcentage of responding OECD countries Source: OECD

10 Measures in place to promote integrity and transparency in noncompetitive tenders For large or high-value procurement, independent validation is required (e.g. by probity auditor or involvement of external party) Amendments to the contract are made publicly available A higher level of authorising personnel is required Random reviews or audits of non-competitive procedures are conducted Written justification for use of non-competitive procedures Not required Required by some ministries/departments Required for all ministries/departments Percentage of responding OECD countries Source: OECD

11 THANK YOU