Promoting integrity in public procurement: the OECD’s experience Ms. Virginia Tortella and Ms. Aniko Hrubi Public Governance and Territorial Development Directorate OECD

Why integrity in public procurement matters? Key policy instrument (represents 16% of GDP on average, in OECD member countries) Integrity in public procurement is a powerful tool for effective service delivery and as such it increases trust in state institutions Promotes additional policy aims such as environment, innovation or social goals It is the government activity most vulnerable to waste, fraud and corruption Additional risks in current context from crisis to recovery: billions of dollars in stimulus funds spent through accelerated procurement procedures

OECD Recommendation Enhancing Integrity in Public Procurement 1. Framework of 10 principles anchored in four pillars: Transparency Good management Corruption prevention Accountability and control 2. Checklist on how to implement the framework through the procurement cycle from needs assessment to contract management and payment. 3

Application of OECD Recommendation Peer reviews Joint Learning Studies: Morocco, Yemen, Iraq Integrity Reviews: Greece, Brazil Toolbox On-line web based practical tools Reporting back on progress OECD countries will report back on progress implementation in 2011

The OECD Joint Learning Studies Adaptation of the OECD peer review methodology to developing countries, including African countries Assessment of public procurement reforms from an integrity and corruption prevention standpoint, in line with international conventions Mapping out risks to integrity in the entire procurement process Proposals for action to improve national procurement policies and practices 5

OECD Joint Learning Studies cont. Pilot project: Enhancing Integrity in Public Procurement JLS on Morocco (2008) OECD Benchmark Report on Improving Transparency in Government Procurement Procedures in Iraq (2008) Enhancing Integrity in Public Procurement: JLS in Yemen (ongoing 2009)

Public Procurement Toolbox What? Living web based document with tools tested in actual practice Why? To support implementing the OECD Principles in national context For who? Procurement officials designing and developing guidance and procedures to enhance integrity in their procurement systems How can this Forum contribute? Consultation process with a broad group of key stakeholders. Scope to include tools that have been effective to enhance integrity in procurement systems in Africa.

Examples of Tools Direct social control of public procurement Inclusion of a reputable non-state actor to oversee key stages in the procurement process in order to increase trust in the system Adopting Integrity Pacts Pact between bidders and procurement entities that establishes mutual rights and obligations Clear ethical standards Provide officials with support to stand up against political pressures and influence by establishing a framework for expected behaviour

Or contact the OECD Integrity Unit at gov.integrity@oecd.org Contact us For more information on OECD work on public procurement visit our website: www.oecd.org/gov/ethics/procurement/ Or contact the OECD Integrity Unit at gov.integrity@oecd.org