Conceptual Framework of NACS & Recommendations on Procurement

How to fight Endemic Corruption?

Address the Causes to Prevent incidence

Involve all stakeholders through Education & Awareness

Strict enforcement of Law Across the board Explanation – High risk low gain activity

Therefore A successful anti-corruption effort requires a three pronged approach of: Awareness Prevention Enforcement

How Pakistan proposes to undertake the task? The amswer to the question is; through the implementation of the National Anti-corruption Strategy or NACS

Through implementation of the National Anti-Corruption Strategy or NACS

NACS A project undertaken in NAB to diagnose the causes of corruption and identify remedial measures

The Project

Study of successful models Study of international best practices Consultations Study of successful models Study of international best practices Research Feb. 2002 to Sept 2002 Recommendations for all sectors National Integrity System Implementation Action Plan The Project started with diagnosis of the problem, followed by development of recommendations for the National Integrity System ( a concept that I will explain shortly) and a detailed implementation action plan for each and every pillar. The action plan is time bound and gives specific responsibility to various stakeholders fro implementation. Time bound Specific responsibility

National Integrity System Sustainable Development Rule of Law Quality of Life NATIONAL INTEGRITY SYSTEM Legislature Executive Judiciary Accountability Bodies Anti Corruption Agencies Media Civil Society Private Sector

National Integrity System

NACS Recommendations Political Will Remuneration Comprehensive Anti Corruption Approach Transparency and Access to Information Training and capacity building Simplification of procedures Explanation in the notes Sindh example in deregulation Simplification of procedures Lee Kwan Yew quotes

NACS Recommendations Rationalization of discretionary powers Participatory governance Improved procurement regime Changes in Anti-corruption structure – institutional and legal Internal Controls Change Management Explanation in the notes Sindh example in deregulation Simplification of procedures Lee Kwan Yew quotes

POPULAR MISCONCEPTIONS Anti Corruption has misconceptions in several areas; ANTI CORRUPTION APPROACH DURATION OF ANTI CORRUPTION SCOPE OF CORRUPTION CONCEPT OF ACCOUNTABILITY RESPONSIBILITY OF ANTI CORRUPTION

NACS on Procurement

Problems Distorted development process Absence of standard procurement regime No coherent procurement law Outdated procurement rules Donor agencies fail to check corruption Lack of public participation

Problems Low competence and professionalism of procurement staff Weak internal controls and internal accountability Lack of transparency Weak external monitoring and accountability Low investment in social sector Lack of continuity in project leadership

Problems No legal protection against collusion Split tendering Specifications to favor particular contractors Inadequate reaction time Collusion between bidders -- Pooling Multiple bids by the same contractor

Problems Delayed payment to contractors Honest bidders dissuaded from bidding No mechanism for dispute resolution

Recommendations Comprehensive Public Procurement Law Need analysis Consultative planning Widely publicized project specifications Reasonable reaction time Evaluation on pre-determined and pre-publicized criteria

Recommendations Evaluation reports to be made public Integrity Pacts Above 5 million for services Above 50 million for works,goods, and equipment Two stage evaluation Effective blacklisting mechanism Swift payments to contractors based on milestones Donors to implement the monitoring mechanism in their projects

Recommendations Prioritize the service delivery sector Training and capacity building of procurement staff Procurement as a professional discipline Details of major projects to be made public at planning stage Continuity in project leadership Changes in tender requirements to be publicized at an appropriate level

Recommendations Evaluation by committees not persons Evaluation committee for mega projects to include civil society representatives Declaration of facilitation payments Donor agencies to review their procurement procedures Capacity building of Auditor General’s Department