românăThe Integrity Pact (IP) is a tool developed by Transparency International (TI) to help governments, businesses and civil society fight corruption in public contracting. It consists of a process that includes an agreement between a government or government agency (‘the authority’) and all bidders for a public sector contract, setting out rights and obligations to the effect that neither side will pay, offer, demand or accept bribes; nor will bidders collude with competitors to obtain the contract, or bribe representatives of the authority while carrying it out.
An independent monitor who oversees IP implementation and ensures all parties uphold their commitments under the IP brings transparency and invaluable oversight to all stakeholders in a contracting process, from the authority to the public.
The cost of implementing an IP may vary depending on the implementation arrangements, the activities included in the process and the complexity of bidding procedures.
In some cases, the monitor is more than one individual. In order for monitors to be effective in their duties sometimes two people are required. For instance, one being an engineer with the technical expertise necessary to monitor, and the second a lawyer familiar in the relevant legal basis of the project and procurement in general. This will drive up costs, but will help ensure the IP is effective.
Regardless of the funding method, attention should always be given to protecting the independence of the monitor, so his/her credibility and efficacy are never affected. There are different ways to finance IP implementation:
- The authorities’ own resources. In this case, potential conflicts of interest need to be addressed and if the process is funded not through the public budget but from other resources, the source of the funds must be disclosed
- Contributions from donors and project financiers. This may enable government agencies and NGOs to acquire the necessary capacity to implement IPs and may promote and facilitate the dissemination of lessons learnt
- Through fees paid by the bidders. Under this scheme all bidders contribute the same amount (a fixed figure, normally reflecting a certain percentage of the estimated contract value) as the cost of participating in the tender. It is important that all bidders contribute and that the amount be the same for each in order not to create inequalities. The IP and monitoring costs during the contract execution period can be paid in part or fully by the winning bidder.
It is possible to combine some or all of these sources. A combination could help to reduce risks and concerns related to possible conflicts of interest in the funding of IPs.
