Procurement Integrity Expectations and Principles

Clare Wee, Head OAI Business Opportunities Fair 2013

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Office of Anticorruption and Integrity (OAI)

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Forestry Sector Project

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Power Project Insulators Stored at Yard

Road Project
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Water Supply Project

OVERVIEW

Integrity Expectations

Recent developments
Corporate Groups Harmonized Guidelines

Path of Integrity =
Winning Path for All

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Corruption

Poverty

NOT an ADB project

COSTS OF CORRUPTION
Bribery: $1,000 billion ($1 trillion)/year Procurement bribes: $200 billion/year

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Global Tightening
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ADBs Anticorruption Policy

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Applies to EVERYONE All ADB projects, activities, staff and external partners

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Office of Anticorruption and Integrity (OAI)

Initial contact for allegations of integrity violations Undertake Project Procurement-Related Reviews (PPRRs) Promote awareness of Anticorruption Policy Investigate allegations of fraud and corruption

Integrity Due Diligence

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Integrity Violations
Corruption Fraud

Coercion

Collusion

MDB harmonized definitions

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Fake/Altered receipts

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Irregularities in information
Registered to a non-member country Address/telephone do not correspond
British Virgin Islands

+63-928

Workshop Attendance Sheets

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Remedial Actions against Proven Integrity Violations

Caution Reprimand Debarment

Aggravating circumstances Baseline period Three (3) years Mitigating circumstances

Common Misrepresentations
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Disqualified/Cancelled/Suspended Consultancy Contracts Bid Guarantee

Performance Guarantee
Past Work Experience

Unauthorized CVs (bait and switch)

Padma Multipurpose Bridge Project

ADB, JICA halted release of their Project was intended to link the underdeveloped funds followingcountrys the WB decision southwestern districts with Dhaka,

JOINT CALL for investigation

the capital, benefitting 30 million people and boosting Bangladesh economy by 1.2%

MDB Cross-Debarment
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As of 2013 244 Firms and Individuals Cross-Debarred

Firms From other MDBs From ADB 145 12 Individuals 71 16

Who can be cross-debarred?

Firms or individuals

Publicly debarred
For over ONE year

For any of the FOUR harmonized prohibited practices

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Recent MDB Developments

Temporary Suspension

At any time during OAIs investigation, OAI finds sufficient evidence of IV

Party was temporarily suspended by a participating institution

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Sanctioning Guidelines (2011)

Applied by 6 MDBs to ensure consistent treatment of individuals and firms

Aggravating circumstances Baseline debarment period Three (3) years Mitigating circumstances

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Harmonized Treatment of corporate groups (2012)

Common standards
Levels of culpability/responsibility determine type and severity of sanction

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Treatment of corporate groups - sanctions:

Sanctions apply to:
Controlling entity
DEBARRED ENTITY
Controlled entity Controlled entity Controlled entity Controlling entity

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Corporate groups sanctions and cross debarment:

Successors are subject to sanction rebuttable Only named entities subject to cross-debarment

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VERY CLEAN

Country
New Zealand Denmark Finland Canada

Rank
1 2 2 10

Transparency International
2011 Corruption Perception Index

UK
United States Bhutan

16
24 38

Sri Lanka
India Indonesia

86
95 100

Bangladesh
Philippines
HIGHLY CORRUPT

120
129 134

Pakistan

Afghanistan

180

Mountain of Rules and Regulations

Penalties

The sole path is to remain in the virtuous sphere

Combating Extortion and Bribery: ICC Rules of Conduct and Recommendations

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Will you steal from this child?

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Working Together

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Urban Infrastructure Development Project

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Properly Installed Gabion Boxes as Protective Wall

WATERSHED REHABILITATION
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Road Development Project

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Power Project
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Less Poverty

Better Projects
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Economic Growth
Greater Distribution of Wealth

Fraud and Corruption

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To Contact OAI
Website: www.adb.org/integrity E-mail: anticorruption@adb.org integrity@adb.org Tel: +63-2-632 5004 Fax: +63-2-636 2152
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