1. Conceptual Framework of NACS & Recommendations on Procurement

2. How to fight Endemic Corruption?

3. Address the Causes to
Prevent incidence

4. Involve all stakeholders through
Education & Awareness

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

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

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

8. Through implementation of the National Anti-Corruption Strategy or NACS

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

10. The Project

11. Study of successful models Study of international best practices
Consultations
Study of successful models
Study of international best practices
Research
Feb 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

12. 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

13. National Integrity System

14. 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

15. 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

16. 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

17. NACS on Procurement

18. 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

19. 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

20. 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

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

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

23. 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

24. 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

25. 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