transparency+&+anti-corruption

At their December 2003 conference in Merida (Mexico), the United Nations Convention against Corruption was opened for signing. It entered into force December, 2005. Objectives of the Convention were:
 * To promote and strengthen measures to prevent and combat corruption more efficiently and effectively;
 * To promote, facilitate and support international cooperation and technical assistance; and
 * To promote integrity, accountability and proper management of public affairs and public property.

Transparency and anti-corruption are important policies for maintaining a credible purchasing process in cross-border trade. [|The UN Global Compact] suggests participants consider the following three elements when fighting corruption and implementing their 10th principle (//anti-corruption//).
 * Internal: As a first and basic step, introduce anti-corruption policies and programs within their organizations and their business operations;
 * External: Report on the work against corruption in the annual Communication on Progress; and share experiences and best practices through the submission of examples and case stories;
 * Collective: Join forces with industry peers and with other stakeholders

// Anti-corruption //// includes all initiatives aimed at preventing fraud, waste and abuse among the participants and stakeholders in cross-border trade. // This involves individuals in government, international organizations, and the private sector.
 * // Definitions //**// Transparency //// in procurement refers to the publication, compliance with and public reporting of established uniform practices for the selection and award of commercial procurements. // Cross-Border trade benefits when these practices are uniformly recognized, followed and enforced.

// “Corruption” // //can take many forms that vary in degree from the minor use of influence to institutionalized bribery//. [|Transparency International's definition of corruption] is "//the abuse of entrusted power for private gain"//. This can mean not only financial gain but also non-financial advantages. A broad definition of corruption encompasses conflict of interest, and any regulation, procedure, or document preventing the impartial exercise of objective vendor source selection.

[|The OECD Guidelines for Multinational Enterprises] define // extortion // as //"The solicitation of bribes is the act of asking or enticing another to commit bribery. It becomes extortion when this demand is accompanied by threats that endanger the personal integrity or the life of the private actors involved."// [|Transparency International's Business Principles for Countering Bribery] defines // bribery // as //“an offer or receipt of any gift, loan, fee, reward or other advantage to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust, in the conduct of the enterprise's business."//
 * // A corrupt practice // is the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party
 * // A fraudulent practice // is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation
 * // A coercive practice // is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party
 * // A collusive practice // is an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.

The UN Convention against Corruption applies to the prevention, investigation and prosecution of corruption. It outlines measures for enforcement that include the freezing, seizure, confiscation and return of the proceeds of offences. The Convention enumerates in detail the measures to prevent corruption, including:
 * // International initiatives //**
 * application of prevention policies and practices in procurement regulations,
 * the establishment of authoritative bodies for maintaining policies and regulations,
 * promulgation of codes of conduct for public (including procurement) officials and
 * objective criteria for the recruitment and promotion of civil servants, and
 * __public procurement__ policies combating fraud, waste and abuse.

The Convention recommends promoting transparency and accountability in the management of public finances and in the private sector through ** Public reporting and private sector participation in procurement are encouraged to promote transparency as a preventative measure. **  The Convention regards offer or acceptance of undue advantages for oneself or for another person or entity as corruption. In the private sector, it calls for the creation of offences of embezzlement and corruption.
 * tougher accounting and auditing standards,
 * measures to prevent __ money-laundering __ and
 * rules to insure the independence of the judiciary.

Absent an authoritative body areas sensitive to favouritism and conflicts of interest erode vendor and customer presumption of fair and reasonable trade prices. Without oversight and a professionally trained purchasing staff, the procurement process is unable to guard against the variables and inefficiencies restrictive specifications, unfair competitive practices, collusive bidding, favoured source selection, premature acceptance and overpayment that adversely affect the efficacy of trade. The OECD declared “corruption in the public sector increases the cost of public transactions which, in turn, is shouldered by taxpayers. This is especially critical in the situation of scarce resources that require a higher optimisation of public spending.” Corruption cases generate a decline in confidence in public institutions which are fuelled by well-publicised scandals that can in the long run undermine trust in government.
 * // Some Problems //** The absence of a transparent decision making process (for evaluation and award) limits public access in the procurement process causing distrust and misunderstanding. And the procurement process is unable to discourage abuse by procurement officials. The same problem can arise in the absence of an impartial government authority able to oversee a uniform regulatory policy against corruption in procurement and payment activities. And unless such a body receives its authorization from a regulation with government support, their responsibilities will be difficult to fulfill.


 * // Some available solutions //**Efficient and effective public services with an inherent culture of integrity are the key pillars of sustained social and economic development. Fighting corruption is essential to ensure the good functioning of public services and to provide best value for money.

Country support of the principles set forth in internationally accepted initiatives such as the UN Convention [], and the OECD Principles for Integrity in Public Procurement [] is essential. The OECD Principles for Enhancing Integrity in Public Procurement provide guidance to policy makers to enhance integrity in public procurement. They are anchored around 4 pillars: **// Transparency //** **// Good management //** **// Prevention of misconduct, compliance and monitoring //** **// Accountability and control. //** The Principles support implementation of international legal instruments developed within the framework of the OECD, as well as other organisations such as the United Nations, the World Trade Organisation and the European Union.

The Joint IFC Task Force in their 2006 Anti-Corruption Agreement proffered the following principles for maintaining integrity against corruption in procurement finances:
 * **Standardized Investigations** that are thorough, professional and respectful of the parties involved. To promote consistency in the practices of the member institutions’ investigative units, the IFC Task Force endorsed the principles and guidelines for investigations set forth in their 2006 __ IFC Anti-Corruption Agreement __
 * **Exchange of Information** among member institutions and country procurement authorities would promote a common approach and enhance cooperation in addressing integrity issues in their activities. It is critical to ensure that the confidentiality of information be maintained so whistleblowers and others remain confident in their ability to communicate with member institutions. The Task Force agreed that the institutions should exchange information, as appropriate, in connection with investigations.
 * **Integrity Due Diligence** comprises ethical business practices and good governance consistent with international standards as part of their lending, trade financing and investment decisions. The World Bank Group augmented these principles with those found in the __ Kosovo Anti-Corruption __ initiatives. The Task Force recommended member institutions be guided by the __general principles__ outlined in their __ IFC Anti-Corruption Agreement Due Diligence Principles __ relating to private sector commercial financing and investment decisions and
 * **Mutual Recognition of Enforcement Actions** (__Cross-Border oversight cooperation and connectivity__) between Multi-National Organisations leverages on separate and d**i**stinct mechanisms for addressing and sanctioning violations of its respective anti-corruption policies. The recommendation now accepted is that each organisation should seek to require all bidders, sponsors, or other firms or individuals participating in activities financed by a member institution to disclose any sanction imposed on that firm or individual by another member institution.

Additional Anti-Corruption websites for initiatives to increase transparency and accountability, strengthen governance (including the press and judiciary) and combat corruption in procurement are provided below. A more complete list of __ Anti-Corruption Resources __ is available by __ clicking here __.
 * // Links & References //**