Integrity PactsTool for

Clean Public Procurement Don Markušić

Vice President Transparency International Croatia

Anti-Fraud and Anti-Corruption MeasuresIn ESI Funds in Croatia

14th May 2014

Powerful tool developed by

Transparency International

o Help governments, businesses and civil society fight corruption in public contracting

o Agreement between the government agency and bidders

o Abstain from bribery, collusion and other corrupt practices

Integrity Pact

Berlin’s new international airport

o €2.4 billion project

o Agreement between operator, Flughafen Berlin-Schönefeld GmbH, and Transparency International Germany

Example Integrity Pact

Clean operations

o Enhanced access to information

o Increased transparency

o Confidence and trust in public decision-making

o Less litigation

o More bidders

o E-procurement

o Simplified administrative procedures

o Improved regulatory action

Benefits of Integrity Pacts

Integrity Pact Process

• Rights and Obligations

• Monitoring System

• Sanctions

• Loss of Contract

• Forfeiture of bid or performance bond

• Liability for damages

• Debarment from future contracts.

Integrity Pacts Role in Project Success

• Transparency and accountably

• Reputation of all participants improved

• Confidence and trust in public decision making

• Improved investment climate

The value of ‘what didn’t happen’

• Corruption is detected and addressed

• Complaints minimised

• Reduction in costs or prices

• Improvement of processes

• Corruption is detected and addressed

Thank you for your attention!

Don MarkušićTransparency International

Croatia