Vendor´s role in enhancing integrity

Vendor´s role in enhancing integrity Research Department

Integrity as a challenge: How much corruption do we have in

the public market place?

Gobierno de Chile | Ministerio de Hacienda | Dirección ChileCompra

Transparency international index 2010

Chile ranks 21


Satisfaction components

2. Integrity perception

1. Transaction costs

Win rate

Vendor´s role: The supplier viewWhat elements make vulnerable the Public Procurement Process?

Vendors opinion: 13% have a poor opinion of public procurement (60% positive)


Check and balance structures in the public market place

MERCADO PÚBLICO

Media and public opinion

Tribunal

Agencies’ Internal control

General Audit

Congress

Privates


Although transparency is fairly acceptable it must be strengthen.

Historically, enhancing integrity has been a public sector challenge. Privates has been out of

the discussion.


Vendor´s role: the supplier view


The importance of vendors in the Defense of Integrity

Vendor´s role: the supplier practice (declared)


In your company…Total (Yes) Average

Do you have implemented any code of conduct or ethics to guide the behavior of the company in relation to integrity?

68,7%

Are there clear rules to solve disputes related to conflict of interest? 76,9%Is there a policy to regulate presents to private or public buyers ? 53,7%Are potential conflicts of interests regulated in your company? 41,0%

Does your company provides training on INTEGRITY? 36,6%Within your company, do you have an integrity compliance officer? 39,6%Do you periodically perform external evaluations of compliance with INTEGRITY? 22,4%Does your company publicly discuss about the importance of integrity? 64,2%Are there mechanisms to enhance integrity in contract management? 47,8%Does the INTEGRITY play an important role in personnel management? 82,1%


Vendors seems to be aware of the relevance of integrity and they have some

practices to avoid bribing and other misbehaviors, but more incentives are

needed.


In the regulatory framework

• 20.393 article 10 bane private contractors surpirsed of bribing or trying to bribe a public official. (due process is requiered)

• This is a new concept in Chilean legislation and it was one the requirement to access OECD.

• Chilecompra is responsible for the registry.

• There is no vendors in this situation yet.


In public tenders

• ChileCompra has the possibility to include specific clauses in any call for proposal to regulate specific issues. This clauses are not mandatory.

• In this case, we should include requirements on vendor’s integrity practices in the tender documents.


Vendor´s role in enhancing integrity Research Department

Vendor´s role in enhancing integrity

Documents

Transcript of Vendor´s role in enhancing integrity