1. 3 rd meeting of the DAC Joint Venture on Procurement, Tanzania, 6 May 2008 Draft OECD Recommendation on Enhancing Integrity in Public Procurement Elodie Beth, Administrator, OECD Public Governance and Territorial Development Directorate 3 rd meeting of the DAC Joint Venture on Procurement, Tanzania, 6 May 2008

2. Applying elements of good governance in public procurement Good governance effort since 2004 Apply elements of good governance in a major risk area Address the whole public procurement cycle, from needs assessment to contract management and payment Overall objective Enhancing integrity efforts so that they are fully part of an efficient and effective management of public resources A multi-disciplinary effort in the OECD Analysing public procurement from aid effectiveness, good governance and anti-bribery perspectives

4. Overview of the project Mapping out of good practices from OECD countries as well as Brazil, Chile, Dubai, India, Pakistan, Romania, and South Africa Checklist for Enhancing Integrity in Public Procurement Policy guidance developed by a network of public procurement officials from OECD and observer countries Consultation with stakeholders on the Checklist Governments from non-member countries, private sector, civil society and academics International organisations (UN, WTO, WB, AfDB, ADB, IADB, etc.) ‏ OECD bodies, including the DAC JV on Procurement (co-Chairs) ‏ Preparation of a draft OECD Recommendation on the basis of the 10 key principles of the Checklist

5. Outline of the 10 Principles Transparency Member countries should: 1. Provide an adequate degree of transparency throughout the whole procurement cycle in order to promote fair and equitable treatment for potential suppliers 2. Maximise transparency in competitive tendering and take precautionary measures to enhance integrity, in particular for exceptions to competitive tendering Good management 3. Ensure that public funds are used in public procurement according to purposes intended 4. Develop a set of professional standards to enhance the knowledge, skills and integrity of public procurement officials

6. Outline of the 10 Principles Prevention of misconduct 5. Put mechanisms in place to prevent risks to integrity in public procurement 6. Encourage close co-operation between government and the private sector to maintain high standards of integrity, in particular in contract management 7. Provide specific mechanisms for the monitoring of public procurement and the detection and sanctioning of misconduct in public procurement Accountability and control 8. Establish a clear chain of responsibility together with effective control mechanisms 9. Handle complaints from potential suppliers in a fair and timely manner 10. Empower civil society organisations, media and the wider public to scrutinise public procurement

7. Towards an OECD Recommendation on Enhancing Integrity in Public Procurement Decision of the Public Governance Committee in April 2008 to prepare the draft Recommendation Policy guidance to help governments reform their systems to enhance integrity and overall performance Reflection of a consensus from OECD member countries on an important issue Interest of the Committee in sharing lessons learned with governments from non-member countries

8. Opportunities for co-operation with the DAC JV on Procurement Exchange of experiences OECD Global Forum on Integrity in Public Procurement, November 2008, Paris Demonstration of the coherence between efforts of donor and partner countries Reference in the recommendation to the efforts of the Development Assistance Committee Use of the Principles for capacity-building Additional guidance for reforming public procurement systems, in particular for pillar of the methodology on transparency and integrity Co-development of a set of practical tools for integrity in public procurement (toolkit) ‏ Examples from different countries of codes of conduct, methodologies for risk assessment, etc.

9. Thank you for your attention. For further information:  OECD report “Integrity in public procurement: Good practice from A to Z”  See website of the Public Governance Directorate: www.oecd.org/gov/ethics/procurement