Reducing Corruption Risk In Defence Procurement

1,324 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,324
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
61
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Reducing Corruption Risk In Defence Procurement

    1. 1. Good Practices Dominic Scott Reducing corruption risk in defence procurement Roundtable, Zagreb 21 February 2007
    2. 2. Structure <ul><li>Principles of good procurement </li></ul><ul><li>Key areas </li></ul><ul><li>Anti-Corruption practices in the various stages of defence procurement </li></ul><ul><li>People & Professionalism </li></ul>
    3. 3. Principles of good procurement <ul><li>Cost-effectiveness and efficiency </li></ul><ul><li>Fairness and impartiality </li></ul><ul><li>Transparency </li></ul><ul><li>Openness to competition </li></ul><ul><li>High-level consultation and evaluation of all major projects, including parliamentary scrutiny </li></ul><ul><li>In addressing corruption risk in defence procurement the most important principle is transparency </li></ul>
    4. 4. Key Areas <ul><li>Vulnerabilities </li></ul><ul><ul><li>Agents </li></ul></ul><ul><ul><li>Offsets </li></ul></ul><ul><ul><li>Conflict of interest (revolving door)‏ </li></ul></ul><ul><li>Anti-corruption tools </li></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Transparency and accountability to parliament </li></ul></ul><ul><ul><li>Blacklisting of contractors </li></ul></ul><ul><ul><li>Protection for whistle-blowers </li></ul></ul><ul><li>Non Governmental Organisations </li></ul><ul><ul><li>Defence Integrity Pacts: enhanced oversight </li></ul></ul><ul><ul><li>Codes of conduct </li></ul></ul>
    5. 5. Defence procurement stages <ul><li>Stage 1: Government policy & capability gap definition </li></ul><ul><li>Stage 2: Requirement definition </li></ul><ul><li>Stage 3: Project costing and call for tenders </li></ul><ul><li>Stage 4: Bid assessment and contract award </li></ul><ul><li>Stage 5: Manufacture, delivery, servicing & maintenance </li></ul>
    6. 6. Defence procurement stage 1 Government policy & capability gap definition <ul><li>Formulation of government policy & parliamentary approval of defence spending </li></ul>Concern – Limited defence budget completeness Counter – MoD ensures that all defence budgets in public domain Concern - Unnecessary purchase Counter – clear MoD plan, proper scrutiny of need Capability gap definition Other concerns – Intense activity by political, diplomatic and/ or commercial interests Excess capability defined Aid packages offered or withdrawn
    7. 7. Defence procurement stage 2 Requirement definition <ul><li>Requirement definition </li></ul>Concern - Agents involved in setting the requirement Counter – MoD requires transparency in all agents/intermediaries employment Concern – requirement falsely/poorly specified Counter – independent review of requirement Concern – “secrecy” unreasonably invoked Counter – MoD insists on minimum use of secrecy and permitted exemptions
    8. 8. Defence procurement stage 3 Project costing and call for tenders Project costing Concern - Single source procurement or limited competition Counter – MoD insists on competition, use of electronic auctions Concern – limited or biased tender list Counter – use EDA process Counter – engage with defence companies Call for Tenders Concern – Collusion among bidders Counter – MoD transparency requirements
    9. 9. Defence procurement stage 4 Bid assessment & Contract Award Bid assessment & contract award eg Taiwan Concern – inadequate methodology Counter – clear & precise procedures with oversight Concern – bias in the evaluation/award Counter – transparency & oversight <ul><li>Other concerns </li></ul><ul><li>Offsets (eg South Africa)‏ </li></ul><ul><li>Aid packages </li></ul>
    10. 10. People & Professionalism <ul><li>Procurement organisation – cross service procurement </li></ul><ul><li>Procurement staff – civilian, professionals </li></ul><ul><li>Codes of conduct </li></ul><ul><li>Training in integrity </li></ul><ul><li>Wealth statements </li></ul><ul><li>Sanctions for unethical behaviour </li></ul><ul><li>Through life contract management and oversight </li></ul>
    11. 11. Thank you

    ×