international transprency pakistan

8/10/2019 International Transprency Pakistan

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Presented by:Khawar Mehmood


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Introduction & BackgroundHow TI Pakistan brought change in NationalProcurement LawTools and Training MaterialTransparent Procurement Principles


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The Integrity Pact Application of IntegrityPactTI Pakistan Recommandation on TransparentProcurement SystemConclusionMonitoring of Integrity Pact


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Internationally, the Transparency Internationalmovements main aim is to strengthen theglobal value system by making transparency

and accountability more relevant public norms.Corruption can have many manifestations, andcountries, typically develop a complex set ofinstitutions, laws, rules and regulations (theintegrity system) in order to combatcorruption.Few activities create greater temptations or

offer more opportunities for Corruption thanublic sector rocurement


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Bribery and extortion in public sectorprocurement of goods and services are keymanifestations of corruption.

Public sector in this context includes nationalor provincial governments, administrations ofcities or local communities as well as otherorganizations carrying out public functions.


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Transparency International Pakistan realizes thatpresently public procurement in all departments ofPakistan is treated as a downstream, clerical, buyingand selling function and, therefore does not attract

professionalism and competent staff to deal with themeagre resources with integrity and transparency.Pakistan had over 27 different ProcurementProcedures, which was the main reason of usingdiscretions to conduct Procurement. This discretionarypower allowed opportunities of corruption. Underthese Procurement Procedures Tender Documents incertain cases were even issued on a published date, andthe Completed Tender is to be submitted next day.


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In February 2000, a Proposal was forwarded byTransparency International Pakistan to the ManagingDirector Karachi Water & Sewerage Board (KWSB),Government of Sindh for the introduction of Integrity

Pact and Transparency in Public ProcurementProcedures to be implemented within the workings ofthe KW&SB.The Integrity Pact has been developed by theTransparency International as a model for TransparentProcurement, on the basis of extensive discussionswith governments and international agencies such asthe World Bank, the Inter-American DevelopmentBank,etc.


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The concept of an Integrity Pact has beendesigned by TI as a voluntary pact to be signedby all contractors and procuring agency to

make public procurement practices transparentis one of them.Integrity Pact is a system which insures thatall activities and decisions of public offices aretransparent and that the projects/works areimplemented, services are provided or taken.


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The Integrity Pact in Pakistan was applied in theSelection of Design & Supervision Consultants inKWSB, K-III Project. The Evaluation Criteria for ShortListing was made Transparent by TI Pakistan.In May 2001, to confirm the establishment of theIntegrity Pact a Workshop was organized by TI-Pakistan for the Karachi Water and Sewerage Board.The other important aspect of application of IntegrityPact in KWSB was that signing of the IP was mademandatory for all Consultants.


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After the Short Listing, Evaluation Criteria for theLetter of Invitation (LOI), on two envelop system.Technical & Financial.The Tender process for Procurement Contracts wascompleted in September 2003 and all majorConstruction Contracts were awarded at a total Cost ofRs 4448 million.Transparent procurement procedures can contribute toa more efficient allocation of resources throughincreased competition and budgetary savings forgovernments.


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The most successful tool of Transparency InternationalPakistan is Memorandum of Understanding MOU it signswith public procuring agencies.After Signing of the MOU, TI Pakistan prepares

Procurement Manual for the procuring g agency and afterits is reviewed and discussed with the officers of theprocuring agency.The Procurement Manual comprises of all the StandardBidding Documents on procurement of Works, Goods &Services, based on International Standards.TI Pakistan also provides the services to vet all tenderdocuments which the Procuring Agency prepares on thebasis of Procurement Manual for 3 months .


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The 3 days CBT Workshop was held on 19-21 September2005 at Karachi, based on the Procurement Manual for theCapacity Building and Training of the experts onprocurement from various departments.

The Workshop was jointly held with following agencies;

Transparency InternationalTransparency International PakistanWorld BankNational Accountability BureauPublic Procurement Regulator AuthorityAuditor General Pakistan.


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Transparency International Pakistan firmly believesthat the application of the principles of integrity,transparency and accountability to all decisionmaking on major public investments will maximize theeconomic, financial, social, environmental and politicalbenefits.Integrity means that the best available technicalexpertise is employed in a non-discriminatory manner,

that fair and open competition leads to a qualityproduct at a fair price (value for money), and that theproduct takes into account the legitimate aspirationsand concerns of all the stakeholders.


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Transparency means that institutions, processes anddecisions are made accessible to the public at large orto representatives of the public so that processes anddecisions can be monitored, reviewed, commentedupon and influenced by the stakeholders.Accountability means that governments, public(government-owned or controlled) institutions andindividual officials on the one hand, and companies

and agents or other individuals acting on behalf ofcompanies on the other hand, must be held strictlyaccountable for the correct and complete execution oftheir tasks and duties.


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Either the World Bank or PEC Bylaws should beuniformly implemented in all government and semigovernment departments till such time the PPRAprepares its own Guidelines.For ensuring Transparency and Public Participation,the Transparency International Pakistans ToolIntegrity Pact should be made an integral part of alltenders.

For every new project, Public Hearings should bemade mandatory for necessity of the project andenvironmental assessment, prior to concept clearanceapproval.


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Clients must declare their evaluation reports ten days(10)prior to actual award of the Contract. Allobjections received from any sector including thecompetitors shall be examined and a Re-Evaluation ifrequired is carried out and the Contract awarded tothe lowest bidder.Evaluation Committees for Pre-qualification andAward of Contracts must include at least two

departmental members, and a minimum of threeindependent experts, (One each from the PakistanEngineering Council, Institute of CharteredAccountants and FPCCI).


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The TI Pakistan Experience confirms that IP allowsprocurement to be based on Standard BidingDocuments acceptable to International Standards, andgenerates healthy Market Competition and Contract isawarded to the most experienced, competent andlowest responsive evaluated bidder in the shortestpossible time.


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