OECD Principles for Integrity in Public Procurement

image of OECD Principles for Integrity in Public Procurement
The OECD Principles for Integrity in Public Procurement are a ground-breaking instrument that promotes good governance in the entire procurement cycle, from needs assessment to contract management. Based on acknowledged good practices in OECD and non-member countries, they represent a significant step forward. They provide guidance for the 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.

In addition to the Principles, this exhaustive publication includes a Checklist for implementing the framework throughout the entire public procurement cycle. It also gives a comprehensive map of risks that can help auditors prevent as well as  detect fraud and corruption. Finally, it features a useful case study on Morocco, where a pilot application of the Principles was carried out.

“The Checklist will help governments and agencies to develop more transparent, efficient procurement systems”

-Nicolas Raigorodsky, Under-secretary of Transparency Policies, Anticorruption Office, Argentina

“Public procurement is one of the most important public governance issues. Action is needed to ensure integrity by reducing bribery and corruption”

-Business and Industry Advisory Committee to the OECD

“The general thrust and content of the document is commendable. Much of it tracks very closely to the United Nations Convention Against Corruption and the United Nations Commission on International Trade Law Model Law”

-Stuart Gilman, Head of the UN Global Programme Against Corruption and the Anticorruption Unit, United Nations Office on Drugs and Crime

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Good Management

Public procurement systems are at the centre of the strategic management of public funds to promote overall value for money, as well as help prevent corruption. To reflect government needs and provide a strategic outlook in relation to the attainment of government or department objectives, procurement planning is a key management instrument. Procurement plans – generally prepared on an annual basis – may include the related budget planning, formulated on an annual or multi-annual basis (often as part of a department investment plan), with a detailed and realistic description of financial and human resource requirements. Planning requires that officials are adequately trained in planning, scheduling and estimating projects costs so that projects are well co-ordinated and fully funded when works need to begin. Procurement plans could also be published to inform suppliers of forthcoming opportunities providing that the information released is carefully selected to avoid possible collusion. Project-specific plans may be prepared for purchases of goods and services that are considered high value, strategic or complex to establish project milestones and an effective structuring of payment. Performance reporting can also contribute to aligning procurement activities with expected outputs or outcomes, particularly when it is linked to associated expenditures.

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