Title: Bribery in public procurement : methods, actors and counter-measures.
Authors: Ehlermann-Cache, Nicola.; Organisation for Economic Co-operation and Development
Publisher: OECD,
Year: 2007
Subjects: Bribery.; Bribery Prevention.; Government purchasing Corrupt practices.
Abstract: Public works contracts mean big business. From road-building to high-tech communication infrastructure, public procurement averages 15% of GDP in OECD countries--substantially more in non-OECD economies--and it is a major factor in the world trade of goods and services. Given the growing complexity of bribe schemes in today’s globalised markets, the problem is how to identify corruption in public procurement so governments can work toward effective prevention and apply sanctions if necessary. This report provides insights on all three fronts. Based on contributions from law enforcement and procurement specialists, the report describes how bribery is committed through the various stages of government purchasing; how bribery in public procurement is related to other crimes, such as fraud and money laundering; and how to prevent and sanction such crimes. The typical motivations and conduct of the various actors engaging in corruption are also highlighted, as well as ten case studies.
Contents: Executive Summary -- Introduction -- Part I. Analysis of Corruption in Public Procurement -- Chapter 1. Public Procurement Rules, Procedures and Practices -- Chapter 2. Vulnerabilities Relating to Project Size, Sector, or Tendering Administration -- Chapter 3. Links to Other Offenses -- Part II. Analysis of the Actors Engaging in Bribery and Typical Corruption Agreements -- Chapter 4. Parties Involved in Bribery -- Chapter 5. Content of the Bribery Agreements -- Part III. Preventing, Detecting, and Sanctioning Bribery in Public Procurement -- Chapter 6. Preventive Measures -- Chapter 7. Controls -- Chapter 8. Detection Mechanisms -- Chapter 9. Investigation and Sanctions -- Part IV. Ten Anonymous Studies on Bribery in Public Procurement -- Template for the Description of the Cases of Bribery in Public Procurement -- I. A senior civil servant and a subcontractor from another state -- II. Bribery relating to public procurement within a local authority -- III. Bribery related to procurements within an international aid organisation -- IV. Fraudulent bid evaluation by an independent consultant in international limited bidding -- V. Award of a consultancy contract to fellow national in exchange for bribes -- VI. Susceptibility of international bidders to influence bidding and coercion in bid tendering -- VII. Collusive bidding and overpricing in international shopping/inernational price quotations -- VIII. Preferential treatment in exchange for gratuities and family member employment -- IX. Bribes in exchange for rewarding contracts -- X. Bribes from contractor to increase quantity of work -- Annex A. The OECD Anti-Bribery Instruments: How They Address Public Procurement