CCC and Transparency Presentation to TI Symposium May 12, 2003

2 CCC and Transparency International International focus Promote transparent international public procurement –The contracts have been obtained through fair and honest means –Buyer receives best value for its money

3 Canadian Crown Corporation Established in 1946 Mandate –To assist in the development of trade between Canada and other nations Mission –Bring buyers and sellers together through contracts built on the best possible terms and conditions Reports to Parliament through the Minister for International Trade

4 Effective Contracting Expertise

5 Canadas Export Contracting Agency

6 Countries of activities 70% of sales to US Department of Defense –Codified procurement rules –DFARS 203 : Improper business practices and personal conflict of interest –DODD Coordination of Remedies for Fraud and Corruption Related to Procurement Activities –Price certification of bids through CCC done by PWGSC

7 DFARS Government contractors must conduct themselves with the highest degree of integrity and honesty. Contractors should have standards of conduct and internal control systems that (1) Are suitable to the size of the company and the extent of their involvement in Government contracting, (2) Promote such standards (3) Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts, and (4) Ensure corrective measures are promptly instituted and carried out.

8 DODD Debarment of contractor and contractor employees Suspension of contractor and contractor employees Removal of contractor from automated solicitation or payment system. Termination of contract exemplary damages withholding of payments to contractor price reduction

9 Bahamas Austria Norway Gabon China India Italy Brazil Panama United States Iran Zambia Romania Trinidad and Tobago Chile Russian Federation Hong Kong Japan Portugal Denmark Bermuda Argentina Puerto Rico Germany Israel Australia United Kingdom Cuba Luxembourg Netherlands Ireland Singapore Colombia United Nations Contracting Activity in in 34 countries

10 Countries of activies > 94% of total sales take places in top 25 less corrupt countries on 2002 TI Corruption perception index.

11 CCCs Contracts No Corruption clause in all CCCs Service Agreements and Domestic contracts Article 12 - Corruption –12.1The Supplier warrants that no bribe, gift or other inducement has been paid, promised or offered to any official or employee of CCC or Her Majesty in right of Canada for, or with a view to, the entering into this Domestic Contract. –12.2The Supplier warrants that it has not contravened and will not contravene the Corruption of Foreign Public Officials Act (S.C. 1998, c. 34) in relation to the Prime Contract.

12 Procurement agent Foreign government buyers are already using CCCs services to fight corruption amongst their employees –Transparent procurement process

13 Price Certification Occasionally, CCC is being asked to certify that the price is fair and reasonable –Certification conducted by PWGSC under CCCs auspice –Unusual amounts would raise red flags –Pay close attention to Agent fees

14 Future …. Work closely with Transparency International Increase efforts to raise awareness of CFPOA amongst CCCs clients and buyers Training sessions to CCC employees

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