Conceptual Framework of NACS Recommendations on Procurement

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

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

How Pakistan proposes to undertake the task?

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

Feb. 2002 to Sept 2002 Research Recommendations for all sectors Implementation Action Plan Consultations Study of successful models Study of international best practices National Integrity System Time bound Specific responsibility

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

National Integrity System

NACS Recommendations • • • Political Will Remuneration Comprehensive Anti Corruption Approach Transparency and Access to Information Training and capacity building Simplification of procedures

NACS Recommendations • • • Rationalization of discretionary powers Participatory governance Improved procurement regime Changes in Anti-corruption structure – institutional and legal Internal Controls Change Management

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Problems • • • Distorted development process Absence of standard procurement regime No coherent procurement law Outdated procurement rules Donor agencies fail to check corruption Lack of public participation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