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Anti-Corruption in Aid Procurement

This article presents the findings of a 2013 survey on anti-corruption measures in aid procurement conducted among DAC members and multilaterals, highlighting legal frameworks, donor and recipient-managed procurement, and accountability measures. The survey shows areas where improvements are needed, such as verification procedures, due diligence systems, and sanctions.

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Anti-Corruption in Aid Procurement

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  1. Anti-Corruption in Aid Procurement A Survey Lena Diesing, lena.diesing@oecd.org 9th Annual Conference on Government Procurement in the Americas 17-19 September 2013

  2. Outline • Context: • 1996 Recommendation • Survey • Legal and Policy Frameworks • Donor-managed procurement • Recipient-managed procurement • Accountability measures and sanctions

  3. Context • USD 130 billion in aid • 15 – 20 % in procurement • 1996: Recommendation by the Development Assistance Committee • 2013 survey: stock taking among DAC members and multilaterals • 24 DAC members plus multilaterals asked • 16 countries responded, plus Senegal

  4. Survey Respondents 4 Multilaterals Asian Development Bank European Commission Inter-American Development Bank United Nations Development Programme

  5. Legal and Policy Framework

  6. Donor-managed procurement • 5 respondents verify bidder claims • Canada, Belgium, Estonia, Germany, UNDP • 4 respondents do not conduct routine verification of bidder claims • Australia, Norway, Sweden, UK • 4 respondents have limited checks • Belgium, Portugal, ADB, IDB

  7. Donor-managed procurement

  8. Recipient-managed procurement

  9. Recipient-managed procurement Accountability Measures 82 per cent assess relevant national procurement systems

  10. Recipient-managed procurement Sanctions

  11. Main Messages and Conclusions Donors aware of corruption risks Safeguards and sanction policies in place Goal: close gap between policy and practice Additional emphasis needed on verification, due diligence systems, and sanctions

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