Integrity Pacts have been used in more than 18 countries worldwide, among others in Argentina, Bulgaria, China, Colombia, Ecuador, Germany, Hungary, India, Indonesia, Italy, Latvia, Mexico, Pakistan, Panama, Paraguay, Peru, Rwanda, South Korea and Zambia. They have been implemented at various levels and across numerous sectors.
This paper includes an overview of how an Integrity Pact can be initiated and their benefits.
Why do companies need Integrity Pacts?
It’s all too common for companies to encounter corruption during public procurement processes. The Organisation for Economic Co-operation and Development (OECD) Foreign Bribery Report states that 57 per cent of foreign bribery cases which it assessed related to public procurement.In the EU alone, corrupt bidding processes have increased annual contract costs by US$5 billion. The effects can be disastrous, including exposing companies to serious risks, such as:
The Integrity Pact (IP) is a tool developed during the 1990s by Transparency International (TI) to help governments, businesses and civil society intent on fighting corruption in the field of public contracting. It consists of a process that includes an agreement between a government or government department and all bidders for a public sector contract.
This brochure provides a brief description of the Integrity Pact.
This handbook seeks to provide hands-on guidance to those contracting authorities and bidders who are willing to act for a more transparent public procurement market by pursuing an integrity pact. Moreover, it is aimed at providing additional information to all those who wish to know more about this anti-corruption tool.
The purpose of this publication – which was written collaboratively in only four days – is to contribute to the already existing literature on Integrity Pacts, but from a civil society perspective. This document is based on the experience of the Transparency International global network. Representatives from 10 Transparency International chapters were brought together to review the challenges that are faced in the different stages of Integrity Pacts, and to document the alternatives they have found to overcome these challenges.