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The basics of integrity in procurement
23 February 2010
Kari Heggstad, Mona Froystad and Jan Isaksen
Chr. Michelsen Institute (CMI)

This guide gives an overview of central issues on anti-corruption and procurement. Practitioners can use the guide to get a basic understanding on how corruption might occur in procurement, why mitigating corruption in procurement is important, where the risks are and how to address the risks. Awareness of corruption risks in procurement is important, because corruption can occur at any point in the procurement cycle and is not always easy to detect. A large percentage of the total government expenditure passes through government procurement systems, and the risk of mismanagement and corruption is high if the processes are not structured and managed in a transparent, accountable and professional manner. Extra vigilance is therefore required when assessing the level of corruption risk in procurement. Many country procurement systems are fundamentally sound in terms of their basic organization and procedures. However weaknesses in execution, compliance, monitoring and enforcement are commonplace. This and the often high levels of corruption associated with the procurement function contribute to a lack of donor confidence in country procurement systems. Still, development partners are committed to use country systems to the greatest extent possible, through the promises made in the Accra Agenda for Action in 2008 and the Paris Declaration on Aid Effectiveness in 2005 (see box below). This will potentially expose donors to increased levels of fiduciary risk including the risk from corruption. Donor agency staff need tools and guidance to keep them alert to this risk, help them assess the level of risk and to be able to devise appropriate safeguards which will allow them to work with partner country systems while providing the desired levels of protection against corruption.

This guide aims to give an introduction to the basics of anti‐corruption thinking in procurement. Organisations such as OECD, Transparency International, the World Bank and the UN together with researchers and institutions provide anti‐corruption and integrity advice for procurement officers, and we have gathered the general knowledge and advice from these guides into one short beginner guide.

The basic questions answered in the guide are:

  • What is procurement and corruption?
  • Why and how does corruption occur in procurement?
  • Why is it important to prevent corruption in procurement?
  • What are the main risks at all stages of the procurement process?
  • What are the main mitigating strategies at all stages of the procurement process?
  • Where can you find more information?

Chapter 2 will answer the two first questions raised above providing the basic knowledge on corruption in procurement and why this is an important issue. Chapter 3 gives an overview of the most common risks of fraud and corruption. Chapter 4 follows with examples of strategies for mitigating corruption, and the practitioner is encouraged to be proactive in their work against corruption. The risks and mitigation strategies are summarised in a table at the end of the report.



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