1. 1 Citizens monitoring of procurement contract implementation: lessons from the Philippines Dondon Parafina ANSA-EAP Network Coordinator Ateneo School of Government 31 May 2011 Kampala, Uganda

2. SAc = (CE + CM) a CE = D + PS M = dG + dU What is social accountability?

3. Government openness Organized citizen groups Access to information Cultural appropriateness Enabling environment [ANSA-EAP]

4. 4 Legal Provision on citizens monitoring of procurement SEC 13. Observers. – To enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite, in addition to the representative of the Commission on Audit, at least (2) observers to sit in its proceedings, one (1) from a duly recognized private group in a sector or discipline relevant to the procurement at hand, and the other from a non-government organization: Provided, however, That observers should be duly registered with the Securities and Exchange Commission and should meet the criteria for observers as set forth in the IRR.

5. 5 Limitations Procurement process in Section 13 appears to refer only to bidding process No mention of third-party observers in Section 42, IRR Section 42, Annex D Role of third-party observers in contract implementation is only recognized in principle, but the principles of the law are not self-executory (Tañada vs. Angara, 272 SCRA 18, 197)

6. 6 Need to Transcend Legal Limitation Clean bidding does not ensure good performance during implementation Citizens have a natural stake in the delivery of public goods and services Government has limited capacity and resources to monitor implementation Alternative third-party information validates project assessments

7. 7 What to monitor in contract implementation? NTP Production Random Inspection/ Testing Acceptance Random Counting/ Inspection Processing of Documents Processing of Payment Payment Distribution to beneficiaries Delivery

8. Relevant provisions Fixed price; no price escalation without permission Warranty Liquidated damages Grounds for contract termination Blacklisting 8

9. 9 Red Flags (adapted from Gottbreht) Expediting payments Paying someone to speed up normal work or process False error delays Creating delays by creating immaterial errors to extract bribe or illegal payment Falsification of receipts Providing official receipts that are actually above or below the real price Falsifying results Paying someone or getting paid to falsify reports to aid corruption activity Feigned indecision Faking indecision in order to encourage illegal off-the-books payment to decision maker Forced substitutions Forcing substitution higher cost items in contract with inferior, lower-cost items Kickbacks Returning a portion of invoiced and paid bill without taxation and records Pay to play Forcing everyday people to pay authorities to be allowed in their transactions Unofficial signing rights Unnecessary signatory added in the approval process to extract bribe or illegal payment

10. Photo by CCAGG CCAGG Road Monitoring SAMPLE INITIATIVES

11. Ateneo School of Government

12. Bayanihang Eskwela Photo by Government Watch Community engages DepED and DPWH in school building construction monitoring and inspection

13. Bantay Eskwela Photo by Procurement Watch, Inc. Community helps check quantity and quality of school furniture

14. Ateneo School of Government Textbook Count Photos by Government Watch, Coca-Cola CSOs help check bidding production delivery distribution

15. 15 Help our students get their books on time. To volunteer as a textbook delivery watcher in your school, call the following numbers… 2003 Ad2004 Ad

16. 16 NEW DELIVERY SYSTEM

17. 17 If IAR is signed by CSO, DepEd Division Office need not inspect deliveries in the districts and high school DepED saves in monitoring and inspection expense Supplier can process payment faster For 3 rd party CSO monitor Citizen volunteer signs IAR

18. Lessons Legal basis Government agencys support Dissemination of information Innovation in coalition building and volunteer mobilization Simplicity of tools Capacity building for citizens Clarity of mission and expected result