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![Page 1: The Role of Transparency International in Fighting Corruption in Infrastructure by Donal O Leary Senior Advisor Transparency International Berlin, Germany.](https://reader035.fdocuments.in/reader035/viewer/2022062504/5a4d1b927f8b9ab0599c1ac4/html5/thumbnails/1.jpg)
The Role of Transparency International
in Fighting Corruption in Infrastructure
byDonal O’ Leary Senior Advisor
Transparency InternationalBerlin, Germany
Prepared forANNUAL BANK CONFERENCE ON DEVELOPMENT ECONOMICS,
TOKYO, MAY 29-30, 2006
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OUTLINE OF PRESENTATION
• INTRODUCTION TO TRANSPARENCY INTERNATIONAL
• SOURCES OF CORRUPTION IN INFRASTRUCTURE (‘GRAND’ AND ‘PETTY’)
• INSTRUMENTS FOR ADDRESSING ‘GRAND’ CORRUPTION
• INSTRUMENTS FOR ADDRESSING ‘PETTY’ CORRUPTION
• THE WATER INTEGRITY NETWORK (WIN): SETTING UP A COALITION TO COMBAT CORRUPTION ISSUES
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INTRODUCTION TO TRANSPARENCY INTERNATIONAL
• INTERNATIONAL NGO FOUNDED IN BERLIN IN 1993
• IS A GLOBAL NETWORK INCLUDING MORE THAN 90 LOCALLY ESTABLISHED NATIONAL CHAPTERS AND CHAPTERS-IN-FORMATION
• THE CHAPTERS BRING TOGETHER RELEVANT PLAYERS FROM GOVERNMENT, CIVIL SOCIETY, BUSINESS AND THE MEDIA TO PROMOTE TRANSPARENCY IN ELECTIONS. IN PUBLIC ADMINISTRATION, IN PROCUREMENT AND IN BUSINESS
• CHAPTERS ALSO SUPPORT ADVOCACY CAMPAIGNS AGAINST ANTI-CORRUPTION
• POLITICALLY NON-PARTISAN, TI DOES NOT UNDERTAKE INVESTIGATIONS OF ALLEGED CORRUPTION OR EXPOSE INDIVIDUAL CAUSES
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Exhibit 1. How Does Corruption Happen in Infrastructure Projects ?
Contracting Decision Contracting
Process/Bid Evaluation
Contract Implementatio
nContract design
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Exhibit 1. How Does Corruption Happen in Infrastructure Projects ?
Contracting Decision Contracting
Process/Bid Evaluation
Contract Implementatio
n
•Unnecessary
•Tagged
•Conflicts of interest
Contract design
•Tagged
• Over-designed,
•Under-designed
• Documents are confusing
•Decision makers are biased
• Selection procedures are non-transparent, or not objective
• Clarifications are not shared with other bidders
• Confidentiality during the process
• Award decisions are not made public or are not justified
• Poor quality, defective, specifications
• Contract renegotiation
•Claim non-existent damages
• Supervisors are biased
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‘PETTY’ CORRUPTION IN INFRASTRUCTURE
PROJECTS• ILLEGAL CONNECTIONS
• FALSE METER READINGS
• INCOMPLETE/TARDY BILLING
• INCOMPLETE/TARDY COLLECTIONS
• UNDULY HIGH CONNECTION CHARGES (LEADING TO ‘UNAUTHORIZED’ CONNECTIONS)
IN SUM, ‘PETTY’ CORRUPTION CAN ACCOUNT FOR 20% ORMORE OF SYTEM LOSSES IN POWER OR WATER
DISTRIBUTION NETWORKS.
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INSTRUMENTS FOR ADDRESSING ‘GRAND’
CORRUPTION
• INTERNATIONAL
• NATIONAL INTEGRITY SYSTEMS
• INTEGRITY PACTS
• BUSINESS PRINCIPLES FOR COUNTERING BRIBERY
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INTERNATIONAL INSTRUMENTS FOR
ADDRESSING ‘GRAND’ CORRUPTION
• UN Convention Against Corruption
• OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
NEED FOR CONSTANT MONITORING AND FOLLOWUP TO ASSURE THAT THESE AND OTHERCONVENTIONS ARE BEING ADHERED TO
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NATIONAL INTEGRITY SYSTEMS
• Institutional Pillars for the National Integrity System
• Rules and Practices for the Institutional Pillars
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Exhibit 2. Pillars of Integrity
National Integrity System
Public Service to Serve the Public
Ruleof Law
Sustainabledevelop-
ment
Qualityof Life
Exec
utiv
e
Civ
il So
ciet
y
Priv
ate S
ecto
r
Cha
mpi
on o
f Ref
orm
Judi
ciar
y
Enfo
rcem
entA
genc
ies
Parli
amen
t
Wat
chdo
gAge
ncie
s
Med
ia
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Integrity Pacts
• Process
• Rights and Obligations
• Monitoring
• Sanctions
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Business Principles for Countering Bribery (BPCB)
The Business Principles state:
• The enterprise shall prohibit bribery in any form whether direct or indirect
• The enterprise shall commit to implementation of a Program to counter bribery.
These principles are based on a commitment tofundamental values of integrity, transparency andaccountability. Enterprises shall aim to create andmaintain a trust-based and inclusive internal culture inwhich bribery is not tolerated.
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Implementation of the BPCB
A program is the entirety of an enterprise’s anti-bribery efforts including values, policies,processes, training and guidelines.
• The BPCB
• Program Implementation Requirements
• Implementation: The TI Six Step Process
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BPCB – SUPPORTING TOOLS
• A Guidance Document provides background on each section of the Business Principles, explains how to implement each Principle, answers frequently asked questions and gives examples of corruption and of good practice.
• The TI Six-Step Implementation Process is a how-to guide for companies who wish to introduce an anti-bribery programme within their organization. This tool is also available as an interactive electronic module.
• TI is currently developing a Self-Evaluation Module to assist companies in assessing their anti-bribery performance, which can also serve as the basis for external verification.
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INTERNATIONAL CORPORATE REPORTING
INITIATIVES/INDICES USING THE BPCB
• FTSE4Good Index
• UN Global Compact
• Global Reporting Initiative
• World Economic Forum Partnering Against Corruption Initiative
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SECTOR-WIDE ANTI-BRIBERY AGREEMENTS
• COVER THE WATER PLASTIC PIPE MANUFACTURING SECTOR
• FIRST AGREEMENT SIGNED IN COLOMBIA in April 2005
• SECOND AGREEMENT SIGNED IN ARGENTINA in December 2005
• FOLLOW UP AGREEMENTS ARE UNDER PREPARATION
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INSTRUMENTS FOR ADDRESSING ‘PETTY’ CORRUPTION
• Management Contracts
• Benchmarking
• Business Principles for Countering Bribery
• Citizens’ Report Cards
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THE WATER INTEGRITY NETWORK (WIN)
• OBJECTIVES
• SCOPE
• MEMBERSHIP
• ACTIVITIES
• NETWORK ORGANIZATION
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WIN GOVERNANCE
Chair and Steering Committee
• Elect• Monitor
Secretariat + Host organization (TI) Members/National groups
• Manage
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WIN GOVERNANCE (Contd.)
Decisions Taken at Interim Steering Committee Meeting, Berlin, May8/9, 2006
• Chair Elected (Hakan Tropp, SIWI)
• TI Designated WIN Manager (Donal O’Leary)
• Work Program Prioritized and Endorsed
• Financing Strategy Agreed
• Launch at WWW, Stockholm, August, 2006
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ISSUES
• Can Reformers Address Corruption on a Sector-Specific Basis?
• Can Reformers Develop Generic Sectoral Anti-corruption Tools?
• How do the Efforts of Civil Society Fit with the Efforts of Other Reformers? Example of the Integrity Pact
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HOW CAN INTERNATIONAL STAKEHOLDERS SUPPORT
ONGOING ANTICORRUPTION EFFORTS IN INFRASTRUCTURE?
• Vigorously Support Institutionalization and Enforcement of Existing International Anti-bribery Conventions
• Provide Financial Support for and Implement the Integrity
Pact in their Own Organizations • Support and Actively Participate, as Appropriate in
Promoting the BPCB
• Provide Financial Support and Participate in the WIN
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THANK YOU FOR YOUR ATTENTION!Donal O‘LearySenior Advisor
Transparency InternationalAlt Moabit 96
Berlín 10559, GermanyTel: (49) (0) 30 343820 30
Fax: (49) (0) 30-3470 3912 Email: [email protected]
the coalition against corruption