Some of the good practices in public procurement are given below.
Policy Response
Policy makers can respond to risks of corruption in general by ensuring a good public procurement system. A good public procurement system that can effectively prevent corruption needs to be transparent and provide for accountability and integrity. The system should also confirm to and cover various procedures, laws and processes put in place for detecting and preventing corruption.
Sound Legal and Institutional Framework
A comprehensive legal framework covering the whole public procurement process and all entities involved in procurement is a precondition for transparent public procurement. Secondary legislation and regulations should define standard tender documents and guide contracting authorities in applying the assessment and in completing and processing tender documents. Furthermore, anti-corruption provisions in the public procurement law (e.g. blacklisting of companies previously involved in corruption) contribute to enhance the transparency and integrity of public procurement. In addition to these measures provision in various other public administration related laws with robust institutional arrangements to implement them is important for a well functioning public procurement office with clear responsibilities.
Control Systems
Control systems play an important role in enhancing the accountability and transparency of a public procurement system and hence in detecting and preventing corruption. They should include adequate independent internal and external control and audit with a clear coordination of all control mechanisms. Internal control comprises the organizational structure on one side and the verification of the procurement process on the other. Control mechanisms can include internal audits, financial risk analysis, management control systems and performance audit and external financial audits.
Complaints and Review Mechanisms
Complaints and appeal mechanisms give companies the chance to protest in case of violations. However, these mechanisms can be misused by suppliers simply filing complaints to distort the process. Therefore, clear rules on the effect of filing a protest should be defined. Effective control and review systems and measures increase transparency and play an important role in preventing corruption.
Sanctions
Warning systems and effective sanctioning systems should be included in a good public procurement system that effectively fights corruption.
Professionalism/Training
The training of public procurement officials and other stakeholders is fundamental. Training should not only include the correct application of rules and procedures, but also obligations, awareness raising on how to identify corruption risks, and means to enhance integrity and effectiveness. In addition, a code of standards for public servants and suppliers/contractors, and reporting obligations of alleged misdeed by public officials, should be made standard.
e-Procurement
Public procurement via the internet has been adopted by an increasing number of countries in recent years. e-Procurement increases transparency, efficiency and lowers costs. It also increases competition by simplifying providing access to information and to the bidding process. Reduced personal contact between public procurement officials and bidders also contributes to preventing corrupt behavior.
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