Integrity Pacts

Anti-Corruption Tools. In looking at the question of preventing future corruption in public contracting, we in Anguilla would do well to look at the Integrity Pact. This is a tool that has been developed by Transparency International. More can be learned about it on the TI website.

The IP consists of a process that includes an agreement (entered into before bids are invited) between a government agency and all pre-qualified bidders for a public contract. It contains rights and obligations to the effect that neither will pay, offer, demand or accept bribes, collude with competitors to obtain the contract, or engage in such abuses while carrying out the contract. The IP also introduces a monitoring system that provides for independent oversight and accountability.

Bidders should disclose all commissions and similar expenses paid by them to anybody in connection with the contract. Sanctions apply in case of violation. These sanctions range from loss of contract, forfeiture of the bid or performance bond and liability for damages, to debarment of bidders from future contracts. Criminal or disciplinary action against employees of government are assured. IPs encourage companies to refrain from bribing by providing assurance that their competitors will also do so. Governments and government officials also have the assurance of a clear framework that protects them from dubious offers.

Governments are able to reduce the high cost of corruption in procurement. Successful implementation on a major project can go a long way to restoring public confidence in a country’s procurement process.

The Integrity Pact has shown itself adaptable to many legal settings. It is flexible in its application. No new legislation is required for its introduction. So far, the IP process has been successfully implemented in about 20 countries around the world. Victor Hart reports in his speech of 15 February 2008 to the Institute of Structural Engineers that regrettably, despite lobbying by T&T’s Transparency Institute, the government of Trinidad & Tobago is yet to use the IP on any of its projects.

In Anguilla, no contractor or engineer has yet begun to lobby for Integrity Pacts. No one is even thinking about the issue. We would not be surprised to learn that the government of Anguilla is not contemplating using the Integrity Pact on any of its major, upcoming projects.