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7 th General Assembly of the African Road Maintenance Funds Association (ARMFA) Maputo 2008

7 th General Assembly of the African Road Maintenance Funds Association (ARMFA) Maputo 2008 Corruption in Public Tenders: How to deal with it? Presentation by: Léon Armel BOUNDA BALONZI Technical Director of the Second Generation Road Maintenance Fund. PRESENTATION LAYOUT.

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7 th General Assembly of the African Road Maintenance Funds Association (ARMFA) Maputo 2008

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  1. 7th General Assembly of the African Road Maintenance Funds Association (ARMFA) Maputo 2008 Corruption in Public Tenders: How to deal with it? Presentation by: Léon Armel BOUNDA BALONZI Technical Director of the Second Generation Road Maintenance Fund

  2. PRESENTATION LAYOUT • General remarks • Main sources of sorruption • Measuresapplied by the Government to fightagains corruption • Common measuresthatcanbetakenwithin ARMF • Conclusion

  3. 1. General remarks • The launching of public tenders in Gabon isguided by the decree 1140/PR/MEFBP of December 18, 2002 on guidelines for public tenders; • The entitiesincharge of public tenders are the General Directorate of Public Tenders, whichfallsunder the Ministry of Finances, and the National Commission of Public Tenders; • The General Directorate of Public Tenders ensures the compliance of the procedures in terms of launching the tender, it issues the no objection statementfrom the inception up to the adjudication of the works by the National Commission incharge of evaluating the bids. • Based on the state investment budgets, as well as donorfunds, in the past four yearsitisestimatedthat the averageamountspent in public contractswas 270 000 000000Francos CFA per annum, equivalent to 571 825 793 USD (1 USD = 472, 585 Franco CFA).

  4. 2. Pontential sources of corruption There are two main types of corruption: • Passive Corruption: The requestis made by a public worker or an emplyee of the privatesector; • Active corruption: the proposalis made by the economic agent; • Consensus: It isdifficult to establish a distintionbetween the two types of corruption • The differentlevels of corruption in public tenders canbesummarized as follows: • Adjudication of works (eg: abusive practive of « give and take »); • Signatures and approvals; • Contractexecution (oversight) • Payment of contracts

  5. 3. Measuresintroduced by the Government to fightagains corruption Bseidesbublicawareness workshops on the impmpact of corruption on the economic and social situation of the country, the government has taken the followingconcetemeasures: • Establishment of a National Commission in charge of fightingagainst the illicit accumulation of wealth, in May 07, 2003; • Introduction of an anti-corruption clause in all Public Contracts, according to the OCDE Convention of 17 December 1997, related to the fightagains Corruption among Public Workers; • Strengtheningbankinglegislation • The recent adoption od Action Plan of the National Good Governance Program (PNBG) 2008 – 2012.

  6. 3. Mesures introduced by the Government to fightagainst corruption Following the introduction of thesemeasuresaimedatfightingagainst corruption on one hand, and the illicit accumulation of wealth and promotetransparency in the management of public funds, on the other hand, the results are not yet palpable, as the last report of the NGO TransparencyInternation has revealed, wherebybGabonmovedfrom the 84th to the 96th position. However, there are encouraging indications as a result of the followingmeasures: • All thosewho are incharge of handling public funds must declaretheirpropertybeforeassumingtheirresponsibility and everythreeyearsduring the duration of theirterm in office; • All thosewhofail to complywiththisoreder are automaticallyexpelledfrom the public sector; • All thosewholeave the public sector have to declaretheirproperty

  7. 4. . AFERA Common measuresthatcanbetakenwithin ARMF If corruption isconsidered to be a calamity, itshouldbesubject to information campaignssemilar to thoseconduct to raisepeople’sawarness about someseriousdeseases (HIV-AIDS, Polio, etc). This issue couldbedealtwithatthelevel of various focal groups of ARMF and shouldculminate in the drafting of a code of ethics in relation to public tenders. The contractsfunded by the Road Maintenance Fund, the followingmeasurescanbeconsidered: • Sistematiclaunching of tenders for procurement of goods and services; • Simplification of the proceduresguiding the public tenders, mainly the reduction of the number of signatures necessary for the contracts; • Mandatory and sistematicanual management audits, extended to deal with the evaluation of the flow of incomes and assets of thoseinvolved in the funding of public works • Inputs for the introduction of confidencialeportingprocedures to deal withcorrupt practices

  8. 5. Conclusion In generalterms, in public tenders corruption is a seriousthreat to the economies of our countries. The consequences of corruption in the economicdevelopment are inclaculable. Weshouldthereforefoightagainstit in a stringentmanner. However, the conditio sine qua non to fightagainstthiscalamityis to make sure that the politicalistranslatedintoconcrete actions

  9. Thankyou for your attention

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