THE INTEGRITY PACT

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THE INTEGRITY PACT

• THE CONCEPT

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Background and Objectives of the IP

• The Integrity Pact (IP) is a tool developed by
  Transparency International (TI) in the 1990s.

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INTEGRITY PACT

• Helps governments, businesses, and civil society,
  which are prepared to fight corruption to do so
  in the field of Public Contracting.
• Enhance public trust in government contracting.
• Contributes to improving the credibility of
  government procedures and administration.

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PARTIES

• Central government
• Local government
• Municipal government

• Foreign PSUs
• MNCs
• PSUs
• Private Corporations foreign or Indian.
• (Interested in obtaining contracts, or in charge
  of implementation)

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Primary Objectives

• (a) Enable Companies to abstain from bribing by
  providing assurances to them that
•                i.      Their competitors will
  also refrain from bribing,
•              ii.      Government procurement,
  privatisation and licensing agencies will
  undertake to prevent corruption, including
  extortion, by their officials and to follow
  transparent procedures

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Primary Objectives

• (b) Enable Governments to reduce the high cost
  and the distortion impact of corruption on public
  procurement, privatisation or licensing
• (C)Establish mutual contractual rights and
  obligations

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The Contract and the IP may cover

• Planning, design, construction, Installation or
  operation of assets.
• Privatisation / sale of assets,
• Issuing by the Authority of licenses and
  concessions,
• Consulting services,
• Financial and administrative support

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PERIOD

• Cover all the activities related to the Contract
• Pre-selection of bidders,
• The bidding
• Contracting proper
• Execution

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The Authoritys Commitment

• Authority as an entity and its officials involved
  in the specific contracting or project commit to
  the following
• No official of the Authority will demand or
  accept -- directly or through intermediaries --
  any bribe, gift, favor, or other advantage for
  him (her) self or any other person, organization
  or third party related to the Contract

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The Authoritys Commitment The
Authority will make publicly available all
necessary and appropriate technical, legal and
administrative information on the envisaged and /
or actual Contract.None of the Authoritys
officials will disclose confidential information
to a bidder or the contractor providing the
bidder or contractor an undue advantage
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The Authoritys Commitment All the
Authoritys officials will disclose conflicts of
interest Authoritys officials will report to
the appropriate government office any attempted
or actual breaches.
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Bidders or Contractors Commitment

• They will not offer, directly or through
  intermediaries, any bribe, gift, favor, or other
  advantages to any official (or a relative or
  friend of his (hers)) of the Authority in
  exchange for any advantage in the bidding,
  evaluation, contracting, and implementation of
  the Contract

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Bidders or Contractors Commitment
They will not collude with other parties
interested in the Contract to impair the
transparency and fairness of the bidding,
evaluation, contracting, and implementation of
the Contract.

• Bidders or Contractors Commitment

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Bidders or Contractors Commitment
.They will not accept any advantage in
exchange for unprofessional behavior Disclose
all the payments made to agents and other
intermediaries NOTE It is evident that, if
even one of the competitors does not sign the IP,
there is no basis for the pact altogether

• Bidders or Contractors Commitment

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DISPUTES

• Disputes over the IP should be resolved through
  national or, where appropriate, international
  arbitration. The IP would define the venue and
  procedure.

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Monitoring and Supervision

• Maximum Transparency at all stages
• Extensive and easy public access to all the
  relevant information.
• Forum with representatives of civil society

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Monitoring and Supervision Public
hearings are also an effective tool.Rights of
representative to refer publicly to the
proprietary aspects should be strictly specified
in close relation to the danger, the suspicion,
and the degree of substantiation of corrupt
practices.
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Forum may consist of

• Entities professionally equipped
• Suitable government office with no involvement
  whatsoever in the supervised procedures,
• Civil Voluntary Organisations.

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Civil Society

• Key role in overseeing and monitoring the correct
  and full implementation of the IP

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Objections

• Lack of necessary expertise Where it does not
  exist among the regular members, it can be
  assured by contracting genuine experts.
• Security considerations Legitimate
  confidentiality of proprietary information, to
  which Civil Society representatives would gain
  access, can be protected adequately through an
  appropriate contractual stipulation.

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Sanctions

• Denial or loss of contract,
• Forfeiture of the bid security and performance
  bond,
• Liability for damages to the principal and the
  competing bidders, and
• Debarment of the violator by the principal for an
  appropriate period.

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The IP will establish

• Contractual rights and obligations of all the
  parties to a government contract
• Eliminate uncertainties as to the quality,
  applicability, and enforcement of criminal and
  contractual legal provisions
• IP concept can be implemented anywhere without
  the normally lengthy process of changing the
  local laws

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The IP will establish

• Beyond the individual contract in question,
  confidence and trust in the public decision
  making process in general,
• a more hospitable investment climate and public
  support in-country for the governments
  procurement, privatisation and licensing programs.

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TRANSPARENCY INTERNATIONAL INDIA Lajpat Bhawan
Lajpat NagarNew Delhi 70PH
011-26460825Emailtiindia_at_hotmail.com,tindia_at_vsn
l.com
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THANK YOU