1 / 20

TI Integrity Pact

Learn about the TI Integrity Pact, a concept developed in 1995 to prevent corruption in public procurement, involving vast sums of money for projects like the Berlin Airport and Bremen City Hospital. The pact includes pledges by owners and bidders, sanctions for violations, transparency in the process, and independent monitoring to ensure integrity. Explore successful implementations and the positive impact on public trust and fair competition.

montgomeryj
Download Presentation

TI Integrity Pact

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TI Integrity Pact Preventing corruption in public procurement Good Practice Germany: Airport Berlin City Hospital - Bremen Dr. K. Schubert, MPH Budapest 17.2.2014

  2. TI Integrity Pact • Public Procurement involves vast sums of money • Investments by Federal, State and Municipalities • Complexity and technical nature scare off public scrutiny • Invites corruption ( authority and contractors) • IP concept developed in 1995

  3. TI Integrity Pact The Concept: • Contractual Agreement between Owner and Contractors to forego all forms of corruption • External independent expert Monitor • Help to governments and municipalities

  4. TI Integrity Pact The Objective: • Make Bidders/Contractors refrain from corruption • Help Authorities to avoid damage from corruption • Restore public trust in government

  5. TI Integrity Pact Structure of IP: • Pledge of Owner • Pledge of Bidders/Contractors • Sanctions • Monitor (external independent expert)

  6. TI Integrity Pact Pledge of the Owner/ Authority: • No employee will accept or demand presents or other advantages for performing official acts • Equal information for all bidders • No confidential information for some bidders • Disclosure of all real/potential conflicts of interest • Every suspicion of a criminal act will be investigated

  7. TI Integrity Pact Pledge of Bidder/Contractor/Sub-Contractor: • Not to give or offer any gifts or other advantages • No collusion with other bidders • No acceptance of advantages for unprofessional behaviour • Disclose any payments to agents or middlemen • Consultants: Assure real competition in selection of “winner”

  8. TI Integrity Pact Sanctions: • Owner to apply internally: • Disciplinary, criminal, civil and labor law sanctions on own staff • Bidder subject to: • Denial/Loss of Contract • Forfeiture of bid bonds and similar securities • Liability to pay damages • Exclusion from future contracts

  9. TI Integrity Pact Transparency of Process: • Broad transparency of all relevant decisions and process steps • Evaluation of Bids • Application of all selection criteria • Protection only for real business secrets

  10. TI Integrity Pact • Five Integrity Pacts in Germany – • all accompanied by monitors • 2005, 2009, 2010 (2x), 2011 • International Airport Berlin (BBI): • 2005 • Financial volume: about 5,1 Billion € (2014) • 1,7 Billion € (2004)

  11. TI Integrity Pact - BBI • Monitor • Professor andconsultantengineer • Externalindipendent expert • Full-time • Office on theairport-area • Continouoslyinvolved in theprocess

  12. TI Integrity Pact - BBI Monitor: • Scrutiny: • 100 (101) international contract placings - 2 Mio € (100%) • 48 (466) national contract placings - 37 Mio € (101 Mio €) • 35 modifications (1.800) - 68,2 Mio € 200 Mio € • No corruption – but mismanagement

  13. Project structure Bremen • Reconstruction of part of a clinical building • Financial volume: about 250 Mio € • Owner: Gesundheit Nord gGmbH (federal gov.) • Bremen: 4 communal hospitals • Biggest hospital in town • Since 1850 • Reputation of the hospital • „Dirty money clinic“ – Schwarzgeldklinik • Previous corruption experience

  14. Situation in a City State • Berlin, Hamburg, Bremen - City states • Short ways • Everybodyknowseverybody • Indipendentof theirpoliticalbackground • Sleaze • Mutuality • Gateway forcorruption • Corruption in Public Procurement

  15. IP - Contactperson • Contact to the IP – project • Contact to the monitor • Contact to the owner • Contact to the regional group of TI • Information mediated by the monitor • Conferences / round table with the player • Press releases (Bremen-Berlin)

  16. The Monitor I • Independent, external Expert(s) • Representative of Civil Society or professional Expert • Selection: Owner + TI or public tender • Unlimited access to all information and meetings • If violations suspected: first, discuss with Owner • If no adequate correction: Report to Public Prosecutor • Paid by Owner

  17. The Monitor II (Bremen) • Were chosen by TI • Highly specialized lawyer • Highly specialized engineer • Scrutiny: • International and national contract placings • Modifications • No corruption – but mismanagement

  18. Good Experience I Feed-back: Owner company (GeNo): • Security • No Loss of money • Aggreements be held • Control of internal rules • Experience of the Monitor • Lawyer – construction expert • Appearance not announced • Many useful preventive advices • High preventive dimension

  19. Good Experience II Feed-back: Constructioncompany • Transparent and fair competition • Noneedofbribe • Nodisadvantagebetweenbidders • Trustfulcooperation • Attractive Public Reputation • Advantage in furthercompetition • Economicalbenefit • Internal Controlofpublicprocurement

  20. Thankyou For Listening

More Related