8 procurement integrity by c. wee rev4 21mar2013

7/29/2019 8 Procurement Integrity by C. Wee rev4 21Mar2013

1/44

Office of Anticorruption and Integrity (OAI)

iACTLets Keep up the fight!

Procurement Integrity

Expectations and PrinciplesClare Wee, Head OAI

Business Opportunities Fair 2013


2/44



3/44


Forestry Sector Project


4/44


Power ProjectInsulators Stored at Yard


5/44


Road Project


6/44


Water Supply Project


7/44


OVERVIEW

IntegrityExpectations

Recentdevelopments

Corporate

Groups

HarmonizedGuidelines

Path ofIntegrity =Winning Path

for All


8/44


NOT an ADB project

Corruption Poverty


9/44


COSTS OF CORRUPTION

Bribery: $1,000 billion ($1 trillion)/yearProcurement bribes: $200 billion/year


10/44


11/44


Global Tightening


12/44


ADBs Anticorruption Policy

Applies to EVERYONEAll ADB projects, activities, staff and

external partners


13/44


Office of Anticorruption and Integrity(OAI)

Initial contact forallegations of integrity

violations

Undertake ProjectProcurement-Related

Reviews (PPRRs)

Promote awareness ofAnticorruption Policy

Integrity Due Diligence

Investigate allegations offraud and corruption


14/44


Integrity Violations

Corruption Fraud

Coercion Collusion

MDB harmonized definitions


15/44


Fake/Altered receipts


16/44


Irregularities in information

Registered to a non-member country

Address/telephone do not correspond

British Virgin Islands+63-928


17/44

Workshop Attendance Sheets


18/44


19/44


Remedial Actions against ProvenIntegrity Violations

Caution

Reprimand

Debarment

Baseline period

Three (3) years

Aggravating

circumstances

Mitigatingcircumstances


20/44


Common MisrepresentationsDisqualified/Cancelled/Suspended

Consultancy Contracts

Bid Guarantee

Performance Guarantee

Past Work Experience

Unauthorized CVs (bait and switch)


21/44

Padma Multipurpose BridgeProject

Project was intended to link the

countrys underdevelopedsouthwestern districts with Dhaka,

the capital, benefitting 30 million

people and boosting Bangladesh

economy by 1.2%

ADB, JICA halted release of their

funds following the WB decisionJOINT CALL for investigation


22/44


MDB Cross-Debarment

As of 2013244 Firms and Individuals

Cross-Debarred

Firms Individuals

From other MDBs 145 71

From ADB 12 16


23/44


Who can be cross-debarred?

Firms or individuals

Publicly debarred

For over ONE year

For any of the FOUR harmonizedprohibited practices


24/44


Recent MDB

Developments


25/44


Temporary Suspension

At any time

during OAIsinvestigation,OAI findssufficient

evidence of IV

Party wastemporarilysuspended by a

participating

institution


26/44


Sanctioning Guidelines (2011)

Applied by 6 MDBs

to ensure consistenttreatment of

individuals and firmsBaseline debarment period

Three (3) years

Aggravating

circumstances

Mitigatingcircumstances

H i dT t t f t


27/44


Harmonized Treatment of corporategroups (2012)

Common standards

Levels of culpability/responsibility

determine

type and severity of sanction

T t t f


28/44


Treatment ofcorporate groups - sanctions:

Sanctions apply to:Controlling

entity

Controlledentity

Controlledentity

Controlledentity

DEBARREDENTITY

Controlling

entity

C t


29/44


Corporate groupssanctions and cross debarment:

Successors are subject to sanction

rebuttable

Only named entities subject tocross-debarment


30/44

TransparencyInternational

2011 Corruption Perception

Index

Country Rank

New Zealand 1

Denmark 2Finland 2

Canada 10

UK 16

United States 24Bhutan 38

Sri Lanka 86

India 95

Indonesia 100Bangladesh 120

Philippines 129

Pakistan 134

Afghanistan 180

VERY

CLEAN

HIGHLY

CORRUPT


31/44

Mountain of Rules and Regulations

Combating Extortion and Bribery: ICC

Rules of Conduct and

Recommendations

Penalties

The sole path is to remain in thevirtuous sphere


32/44



33/44


34/44


Working Together


35/44



36/44


Urban Infrastructure Development Project


37/44


Properly Installed Gabion Boxesas Protective Wall


38/44


WATERSHED REHABILITATION


39/44


Road Development Project


40/44


Power Project

LessPoverty


41/44


Fraud and

Corruption

Better ProjectsLess Poverty

Economic

GrowthGreater Distribution

of Wealth


42/44



43/44



44/44

To Contact OAI

Website: www.adb.org/integrity

E-mail: [email protected]

[email protected]

Tel: +63-2-632 5004

Fax: +63-2-636 2152

8 procurement integrity by c. wee rev4 21mar2013

Documents