Conceptual Framework of NACS & Recommendations on Procurement

1. Conceptual Framework of NACS & Recommendations on Procurement Shaffaf Pakistan September 19, 2005 by Umar Zaffer

2. Past Efforts to Eradicate Corruption

3. How to fight Endemic Corruption?

4. Address the Causes to Prevent incidence

5. Involve all stakeholders through Education & Awareness

6. Strict enforcement of Law Across the board

7. Therefore • A successful anti-corruption effort requires a three pronged approach of: • Awareness • Prevention • Enforcement

8. How Pakistan proposes to undertake the task?

9. Through implementation of the National Anti-Corruption Strategy or NACS

10. NACS A project undertaken in NAB to diagnose the causes of corruption and identify remedial measures

11. The Project

12. Consultations Study of successful models Study of international best practices Feb. 2002 to Sept 2002 Research Recommendations for all sectors National Integrity System Implementation Action Plan Time bound Specific responsibility

13. NATIONAL INTEGRITY SYSTEM Anti Corruption Agencies Accountability Bodies Private Sector Civil Society Legislature Executive Judiciary Media National Integrity System Sustainable Development Rule of Law Quality of Life

14. National Integrity System

15. Salient recommendations of NACS • Political Will • Remuneration • Comprehensive Anti Corruption Approach • Transparency and Access to Information • Training and capacity building • Simplification of procedures

16. Salient recommendations of NACS • Rationalization of discretionary powers • Participatory governance • Improved procurement regime • Changes in Anti-corruption structure – institutional and legal • Internal Controls • Change Management

17. POPULAR MISCONCEPTIONS ABOUT ANTI CORRUPTION • ANTI CORRUPTION APPROACH • DURATION OF ANTI CORRUPTION • SCOPE OF CORRUPTION • CONCEPT OF ACCOUNTABILITY • RESPONSIBILITY OF ANTI CORRUPTION

18. NACS on Procurement

19. Problems • Distorted development process • Absence of standard procurement regime • No coherent procurement law • Outdated procurement rules • Donor agencies fail to check corruption • Lack of public participation

20. Problems • Low competence and professionalism of procurement staff • Weak internal controls and internal accountability • Lack of transparency • Weak external monitoring and accountability • Low investment in social sector • Lack of continuity in project leadership

21. Problems • No legal protection against collusion • Split tendering • Specifications to favor particular contractors • Inadequate reaction time • Collusion between bidders -- Pooling • Multiple bids by the same contractor

22. Problems • Delayed payment to contractors • Honest bidders dissuaded from bidding • No mechanism for dispute resolution

23. Recommendations • Comprehensive Public Procurement Law • Need analysis • Consultative planning • Widely publicized project specifications • Reasonable reaction time • Evaluation on pre-determined and pre-publicized criteria

24. Recommendations • Evaluation reports to be made public • Integrity Pacts • Above 5 million for services • Above 50 million for works,goods, and equipment • Two stage evaluation • Effective blacklisting mechanism • Swift payments to contractors based on milestones • Donors to implement the monitoring mechanism in their projects

25. Recommendations • Prioritize the service delivery sector • Training and capacity building of procurement staff • Procurement as a professional discipline • Details of major projects to be made public at planning stage • Continuity in project leadership • Changes in tender requirements to be publicized at an appropriate level

26. Recommendations • Evaluation by committees not persons • Evaluation committee for mega projects to include civil society representatives • Declaration of facilitation payments • Donor agencies to review their procurement procedures • Capacity building of Auditor General’s Department

27. Thank You