Contenu connexe Similaire à GIACC WCCE Joint Workshop Similaire à GIACC WCCE Joint Workshop (20) Plus de World Council of Civil Engineers Plus de World Council of Civil Engineers (6) 1. © 2010 GIACC 1 Preventing corruption in the infrastructure sector ____________________________________________________________________ Workshop 11 February 2011 Puerto Rico www.giaccentre.org Workshop: Anti-Corruption Action Plan Construction Sector PR 2. Topics Background Ethics The Rule of Law Definition and causes of Corruption How does Corruption occur? Cost, Liability and avoidance of Corruption Government Anti-Corruption Actions Corporate Anti-Corruption Actions Project Anti-Corruption Actions Professional Institutions Anti-Corruption Actions Workshop round table discussion: Agreeing on Action Plan © 2010 GIACC 2 Workshop: Anti-Corruption Action Plan Construction Sector PR 3. Background The Construction Sector is reported as representing large economic losses through Corruption Need to address the causes and PREVENTION Involve all Stakeholders Parallelism to Occupational Safety Environmental Protection Quality Control and Assurance The PILLARS to build upon: Values Rule of Law Ethics Professionalism Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 3 4. © 2010 GIACC 4 Management systems can prevent corruption Corruption prevention is primarily a management issue. Good management in government, in companies and on projects can materially reduce corruption. Corruption prevention should be treated in a similar manner to safety management. To prevent corruption, you need to understand both how it takes place, and how to prevent it. Workshop: Anti-Corruption Action Plan Construction Sector PR 5. © 2010 GIACC 5 The GIACC Resource Centre The Global Infrastructure Anti-Corruption Centre (GIACC) is an independent not-for-profit organisation which provides resources for the purpose of preventing corruption in the infrastructure sector. The GIACC Resource Centre is a web-resource which provides free of charge access to information, advice and tools designed to help stakeholders prevent corruption. Most of the materials covered in this workshop are contained in greater detail, with supporting tools, on the GIACC Resource Centrewww.giaccentre.org Workshop: Anti-Corruption Action Plan Construction Sector PR 6. Ethics Basics Behavior Education and training Issues of Code of Ethics Guidelines for Code of Ethics An Engineers Charter Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 6 7. Basics Deals with what is good and bad Includes a set of moral principles and values Distinguishes between what is allowed and forbidden Determines duties and moral obligations Ethics is a consequence of responsibility to protect the security, health and well being of humanity It must coexist and work within the Rule of Law Service must be placed before own benefit and professionalism before personal advantages Imposes certain things to do sometimes and others that may never be done Must denounce corruption even if this could jeopardise her/him Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 7 8. Behavior Service must be placed before individuality Use talent, knowledge and imagination to assist society to: Assist in removing progressive impairment of the Environment Improve the quality of life for all Accomplish the objectives of the work in a sustainable way Examine the consequences of the work upon Health Social equity Local system of values The Environment Socio-economic system Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 8 9. Behavior: Ethics failures of the Professional Technical incompetence or misrepresentation of competence Conflicts of interest Discrimination, favoritism or harassment Misuse of Company, Public or client resources Failure to protect public health, safety or welfare Improper relations with clients, contractors, others Mishandling sensitive information Failure to reconcile employee or colleagues concerns Failure to protect the Environment Poor quality control or quality of work Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 9 10. Education and Training Technical competence Ethical behavior starts in the home and in school Deficient ethical formation in Professional Faculties Ethics training through specific courses and throughout schooling Reinforcement and improvement of ethical behavior through continuing education- a clear objective in all courses Promotion ethical principles for professional conduct of members Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 10 11. Issues of Code of Ethics Two types of Code of Ethics Model Code for umbrella entities Particular Code for the organization inspired by umbrella Code Constitutes a set of underlying principles as the framework for responsible professional practice Based on broad principles of Truth Honesty Truthfulness Accuracy Collaboration Conscientiousness Loyalty Respect for Human life and welfare Openness Competence ACOUNTABILITY Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 11 12. Main Topics in Codes of Conduct Protection of the Public (Safety, Health, Welfare) Sustainable development Environmental ethics Faithful agent of clients and employees Competence and knowledge through training and experience Fairness and integrity in the workplace Equal employment opportunities Professional accountability and leadership Enhance the honor, integrity and dignity in the profession ZERO Tolerance for Corruption Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 12 13. Guidelines for Code of Ethics Uphold and advance the integrity, honor, and dignity of profession Promote the most effective use of financial resources Scrupulously honest in control and spending of resources Adopt a ZERO tolerance to corruption Be especially vigilant to payment of gratuities and or bribery Include certifications in contract documents specifying zero tolerance of corruption during execution of the project Strive for complete transparency in all activities Be duty-bound of their organization’s bylaws to report observed Code of Ethics violations Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 13 14. An Engineers Charter Launched by ASCE in 2005 Embraced by WFEO, WCCE Signatories acknowledge, as fundamental principles in their professional conduct: Not involved in activity that permits abuse of power Recognizes that corruption occurs within public and private sectors, procurement and execution of projects, and employers and employees Refuse to condone or ignore corruption, in all their facets Urge professional engineer societies and institutions to adopt and promote transparent and enforceable guidelines for ethical professional practice Enforce anti-corruption guidelines by reporting infractions Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 14 15. Rule of Law Premises Principles The Rule of Law Index Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 15 16. Premises The Rule of Law is the foundation for Communities of opportunity and equity Multidisciplinary collaboration is the most effective way to advance the Rule of Law Sources of data: General population poll 1,000 respondents Three largest cities Qualified respondents questionnaires by in-country experts Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 16 17. Principles I. Government and its officials and agents are accountable under the Law. II. Laws are clear, publicized, stable and fair, and protect fundamental rights, including the security of persons and property. III. The process by which the laws are enacted, administered and enforced is accessible, fair and efficient. IV. Access to justice is provided by competent, independent, and ethical adjudicators, attorneys or representatives, and judicial officers who are of sufficient number, have adequate resources, and reflect the makeup of the community they serve Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 17 18. Rule of Law Index Quantitative assessment tool to offer a comprehensive picture of the extent to which countries adhere to the Rule of Law. Work is in progress to extend to all countries- currently reporting on 35 countries Powerful tool to identify trends Based on : Population poll (three largest cities) Qualified respondents questionnaires Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 18 19. What is measured? Focus on “effectiveness of law” rather than “law on the books” Focus is on Outcomes that the Rule of Law brings to societies rather than Inputs or means to attain them Example: Outcome: Homicide rate (Crime) Input: Police resources, funding, number of officers Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 19 21. What is rule of law? “Thin” definition “Thick” definition Effective access to justice Formal procedural rules Democratic elections Effective access to justice The Index takes an intermediate position that encompasses elements of political participation, fundamental human rights, and access to justice 22. 10 indices or factors Limited Government Powers Absence of corruption Clear, Publicized and Stable Laws Order and Security Fundamental Rights Open Government Regulatory Enforcement Access to Civil Justice Effective Criminal Justice Informal Justice 23. Current status of the Index Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 23 24. Index for the USA Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 24 27. USA- Media free to express against Government Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 27 29. USA- Open Government and Regulatory Enforcement Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 29 31. USA- Access to Justice Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 31 32. © 2010 GIACC 32 Why corruption occurs ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 33. © 2010 GIACC 33 Lack of anti-corruption controls Lack of government controls: Many governments do not implement anti-corruption controls (prevention, investigation and prosecution). Some government officials are the cause of corruption. Lack of corporate controls: Project owners and construction and engineering companies have too few anti-corruption controls. Lack of systematic approach to addressing corruption – in contrast to safety systems. Limited focus: Measures used focus mainly on tender phase, and ignore other project phases. Workshop: Anti-Corruption Action Plan Construction Sector PR 34. © 2010 GIACC 34 Complex contractual structure Large number of project participants. Linked in complex contractual structure. Can have 100s of contractual links. Each contractual link provides opportunity for some form of corruption. Cost of this corruption can be passed up the contractual chain and is often ultimately borne by the project owner. Workshop: Anti-Corruption Action Plan Construction Sector PR 35. © 2010 GIACC 35 Complex contractual structure - Example Project owner Project funder Main contractor Project engineer Operating contractor Aid donor Turbine Sub-con Civils Sub-con Other plant Sub-con Turbine Sub-sub Civils Sub-sub Plant Sub-sub Suppliers Workshop: Anti-Corruption Action Plan Construction Sector PR 36. © 2010 GIACC 36 Other factors (1) Diversity of skills – no common professional standards. Number of project phases – difficulty in control and oversight. Size of projects – easier to hide corruption in large projects. Uniqueness of projects – difficult to make cost comparisons so easier to hide bribes and inflate costs. Workshop: Anti-Corruption Action Plan Construction Sector PR 37. © 2010 GIACC 37 Other factors (2) Complexity of projects – difficult to assess reasons for delays, cost overruns, defects, and validity of claims. Facilitates corruption as it may be easier to conceal problems, make fraudulent claims, etc. Concealed work – places great reliance on honest certification of work before it is concealed – so great potential for corruption. Lack of transparency – makes detection of corruption more difficult. Status quo – corruption often regarded as normal business practice in some countries. Workshop: Anti-Corruption Action Plan Construction Sector PR 38. © 2010 GIACC 38 What is corruption? ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 39. © 2010 GIACC 39 Alternative definitions No fixed definition of corruption Narrow definition : bribery only Wide definition : all activities involving bribery, deception and/or dishonesty in order to gain personal or corporate profit. Workshop: Anti-Corruption Action Plan Construction Sector PR 40. © 2010 GIACC 40 Wide definition of corruption Workshop: Anti-Corruption Action Plan Construction Sector PR 41. © 2010 GIACC 41 Why is wide definition preferable? All are criminal offences Most involve deception Are concealed Objective is illegal profit Often occur together Normally result in financial loss/defective quality Require similar preventive/detection measures Workshop: Anti-Corruption Action Plan Construction Sector PR 43. Bribes can be: - Money, property or assets - Gifts or entertainment - Paying for a holiday - Promise of future work - Anything of value to the recipient Example: A tenderer bribes procurement officer to win tender. Workshop: Anti-Corruption Action Plan Construction Sector PR 44. © 2010 GIACC 43 Extortion Definition: Where someone demands money or other benefit: In return for not inflicting personal harm or damage, or In return for performing a service that is properly due. Example: A policeman demands payment in order to allow driver through roadblock. Workshop: Anti-Corruption Action Plan Construction Sector PR 45. © 2010 GIACC 44 Facilitation payments Definition: Payment made to induce someone to perform their duty properly. Can be called many things: “grease payment”; “tea money” etc. The payment is normally quite small. Example: A government official demands payment in order to issue a customs clearance which is properly due. Workshop: Anti-Corruption Action Plan Construction Sector PR 46. © 2010 GIACC 45 Fraud Definition: Using deception to gain some financial or other advantage. Example: A project owner charges liquidated damages to the contractor when he knows that the delay is not the contractor’s fault. Workshop: Anti-Corruption Action Plan Construction Sector PR 47. © 2010 GIACC 46 Collusion Definition: Two or more persons conspiring to defraud or deceive another party. Example: The bidders agree in advance as to which of them will win the tender. The winner as a result can submit a higher price. Workshop: Anti-Corruption Action Plan Construction Sector PR 48. © 2010 GIACC 47 Embezzlement Definition: A person stealing money or other assets which he has been trusted to look after. Example: A government official steals tax payers’ money by arranging for his department to place false contracts from which he benefits. Workshop: Anti-Corruption Action Plan Construction Sector PR 49. © 2010 GIACC 48 Secret ownership Definition: Concealing the true ownership of a company or asset in order to profit illegally from a contract. Example: A procurement officer secretly owns one of the companies which is bidding, and ensures that his company wins the tender. Workshop: Anti-Corruption Action Plan Construction Sector PR 50. © 2010 GIACC 49 Abuse of power Definition: The abuse of a position of trust for the purposes of illegal gain. Example: A project engineer extorts a bribe from a contractor in order to certify payment. Workshop: Anti-Corruption Action Plan Construction Sector PR 51. © 2010 GIACC 50 Money-laundering Definition: The movement of cash or assets obtained by criminal activity from one location to another. Example: A government official receives a bribe payment into his bank account. He transfers the bribe amount from that account to a bank account in another country. Workshop: Anti-Corruption Action Plan Construction Sector PR 52. © 2010 GIACC 51 How corruption occurs ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 53. © 2010 GIACC 52 Where does corruption occur? Common assumption: Significant corruption occurs only in the tendering phase of a project. Not correct. It should be assumed that: Significant corruption can occur in any phaseof a project. Workshop: Anti-Corruption Action Plan Construction Sector PR 54. © 2010 GIACC 53 Assumed risk of corruption Workshop: Anti-Corruption Action Plan Construction Sector PR 55. © 2010 GIACC 54 Real risk of corruption Workshop: Anti-Corruption Action Plan Construction Sector PR 65. In contracts and sub-contractsWorkshop: Anti-Corruption Action Plan Construction Sector PR 67. Unviable project: A power project is approved which will impose tariffs far in excess of the population's ability to pay because the government minister responsible for approving the project and those responsible for operating the finished power station will benefit. 68. Inappropriate project: An airport project is commissioned, which is far in excess of the country's requirements and ability to fund, because the government minister responsible for approving the project has been bribed by the intended contractor, or owns the land. Workshop: Anti-Corruption Action Plan Construction Sector PR 70. A private sector project owner bribes the funder's consulting engineer to conceal adverse project data. 71. A bank’s funding officer funds a bad project in order to get a performance bonus. 72. A bank’s funding officer secretly buys land which is needed for the project construction, or secretly buy shares in the project owner. Workshop: Anti-Corruption Action Plan Construction Sector PR 73. © 2010 GIACC 58 Corruption in planning/approval: Examples The project owner bribes a government official to obtain planning permission, or to obtain approval for a design which does not meet relevant building regulations. A government official extorts bribes as a condition of his approval of the project. For example, he may require: cash payment shares in the project owner a share in the profits of the project owner a share in the profits of construction from the contractor; or the use of his own companies to provide construction services or supplies to the project owner. Workshop: Anti-Corruption Action Plan Construction Sector PR 75. A supervising government official bribes the design engineer to specify a supplier which is secretly owned by the government official. 76. A designer pays a bribe to the project engineer to conceal design defects.Workshop: Anti-Corruption Action Plan Construction Sector PR 78. Corruption in competitive tender: Bribery of procurement officer False information in tender Secret ownership of tenderer Corrupt contract negotiation: Bribery of procurement officer to allow unduly favourable contract terms to contractor. Workshop: Anti-Corruption Action Plan Construction Sector PR 80. © 2010 GIACC 62 Corruption in tendering: Examples (2) Cartels: The bidders agree in advance as to which of them will win the tender. The winner as a result can submit a higher price. Loser’s fee: The bidders agree to include in all of their tenders an additional amount. The winner shares this additional amount between all the losers to compensate them for their bidding costs. Price fixing: Suppliers (e.g. of concrete) agree that they will compete against each other, but will never drop below an agreed price per unit. Cover pricing: A contractor is too busy to undertake a project, but must bid to stay on tender list. It obtains a competitor’s price in advance and puts in price higher than the competitor so as to lose. Workshop: Anti-Corruption Action Plan Construction Sector PR 85. False evidence: A contractor, consultant or project owner submit falsified records to support a claim (e.g. false programmes, invoices, timesheets etc). 86. Withholding certification: An engineer refuses to issue a variation or extension of time because this will expose the engineer to a claim by the project owner for breach of contract or negligence. 88. Supply of inadequate work: A contractor carries out and conceals defective work.Workshop: Anti-Corruption Action Plan Construction Sector PR 99. Excess fees charged by lawyers and other professional advisors. Workshop: Anti-Corruption Action Plan Construction Sector PR 100. © 2010 GIACC 67 Costs of corruption ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 101. © 2010 GIACC 68 What are the costs of corruption Corruption is one of the greatest obstacles to the development of safe and adequate infrastructure. Project funds are diverted to corrupt officials, funders, contractors, consultants, suppliers and agents. Human cost Economic cost Global National Project Workshop: Anti-Corruption Action Plan Construction Sector PR 102. © 2010 GIACC 69 Human costs of corruption Stealing public money Fewer good roads, schools and hospitals Poor safety and environmental procedures People die due to lack of food and healthcare, and dangerous infrastructure. CORRUPTION KILLS. Workshop: Anti-Corruption Action Plan Construction Sector PR 103. © 2010 GIACC 70 Economic costs of corruption - global Corruption is concealed. Much corruption is never discovered. So – impossible to quantify accurately the cost of corruption. World Bank and EU Commission estimate of the cost of corruption (bribery and fraud) generally: 5% of the world’s gross product = US$1.5 trillion p.a. Conservative estimate of cost of corruption in the international construction sector: 5% of the global construction sector = US$200 billion Workshop: Anti-Corruption Action Plan Construction Sector PR 113. © 2010 GIACC 73 Theoretical example of corruption across phases: Non-corrupt cost of power plant $100 million Over design (adds $10m). $110 million Bribe to win contract (adds $11m) $121 million Extra financing costs (adds $10m) $131 million Fraudulent claims (adds $9m) $140 million Repairs for defective work (adds $10m) $150 million Workshop: Anti-Corruption Action Plan Construction Sector PR 114. © 2010 GIACC 74 Liability for Corruption ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 115. © 2010 GIACC 75 Who can be liable for corruption Individuals and organisations can be liable for corruption. The type and extent of criminal liability will depend on the law of a particular country. Workshop: Anti-Corruption Action Plan Construction Sector PR 116. © 2010 GIACC 76 Liability for corruption – Individuals The following individuals may be criminally liable for corruption: Those directly involved Those indirectly involved e.g. if they used another person (an agent) to act on their behalf. Those in authority e.g. if they authorised the offence, or consented, or turned a blind eye to it. Aiding and abetting – if someone facilitates the offence. Workshop: Anti-Corruption Action Plan Construction Sector PR 118. Through the acts of its agents – if the corrupt act is committed in the course of the appointment. 119. Through the acts of its related companies or business partners – if the company authorised, approved, condoned or turned a blind eye to the corruption.Workshop: Anti-Corruption Action Plan Construction Sector PR 120. © 2010 GIACC 78 International law and enforcement ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 121. © 2010 GIACC 79 International law and enforcement - changes The chances of a company or individual being liable for corruption have increased due to: new international treaties new international laws more strict donor requirements better prosecution. There are now numerous international examples of corruption prosecutions. Workshop: Anti-Corruption Action Plan Construction Sector PR 122. © 2010 GIACC 80 Treaties (1) Many international treaties have been signed requiring member states to implement anti-corruption laws and procedures: The United Nations Convention against Corruption (2003) The United Nations Convention against Transnational Organised Crime (2003) The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1999) The African Union Convention on Preventing and Combating Corruption (2003) The Inter-American Convention against Corruption (1996) Workshop: Anti-Corruption Action Plan Construction Sector PR 123. © 2010 GIACC 81 Treaties (2) The Council of Europe Criminal Law Convention on Corruption (2002) The Council of Europe Civil Law Convention on Corruption (2003) The EU Convention on the Protection of the European Communities’ Financial Interests (PIF-Convention), and its first and second protocols (2002) The EU Convention on the Fight against Corruption involving Officials of the European Communities or Officials of the EU Member States (2002) ADB-OECD Action Plan for Asia-Pacific Workshop: Anti-Corruption Action Plan Construction Sector PR 124. © 2010 GIACC 82 Laws Most countries have changed their laws in accordance with treaty requirements. Bribery and other corruption offences are therefore crimes worldwide. All OECD countries have now made it a crime for their nationals and organisations to bribe overseas. As a result, a person or organisation may be liable for corruption both: In the country where the corrupt activity took place; and In his/its home country. Workshop: Anti-Corruption Action Plan Construction Sector PR 125. © 2010 GIACC 83 Donor requirements Donors (World Bank, AfDB, ADB, IADB, EBRD, EU etc.) and Export Credit Agencies have tightened up on anti-corruption requirements. Most of them debar companies and individuals which have committed corruption. Workshop: Anti-Corruption Action Plan Construction Sector PR 126. © 2010 GIACC 84 Prosecution Prosecution agencies worldwide are now starting to investigate and prosecute companies and individuals for corruption. There have been many recent major cases. Summaries of some cases can be found in the quarterly Newsletters of the UK Anti-Corruption Forum. http://www.anticorruptionforum.org.uk/acf/forum_newsletters/ Workshop: Anti-Corruption Action Plan Construction Sector PR 127. © 2010 GIACC 85 Preventing corruption:Government actions ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 128. © 2010 GIACC 86 Good law Governments should ensure that there is good law in relation to corruption. Good criminal law: Clear Comprehensive Fair Easy to prosecute Proportionate penalties Good civil law: Equivalent features to those above Enable innocent parties to recover compensation from the corrupt. Workshop: Anti-Corruption Action Plan Construction Sector PR 129. © 2010 GIACC 87 Effective authorities There must be effective investigating, prosecuting and judicial authorities: Honest and competent. Reasonable salary. Independent of government. Appointed by independent and transparent means. Operate without interference from government. Adequate resources. Co-operate openly with other countries’ agencies. Independent assessment. Workshop: Anti-Corruption Action Plan Construction Sector PR 130. © 2010 GIACC 88 Effective investigation and prosecution Criminal investigations and prosecutions and civil actions should have the following features: Approval of government should not be required for investigations, prosecution or civil actions. Political interference should be prohibited. No government official should have immunity from prosecution. Transparency in prosecution. Workshop: Anti-Corruption Action Plan Construction Sector PR 131. © 2010 GIACC 89 Asset recovery Government should take adequate steps to recover and repatriate assets stolen through corrupt activities. Implement adequate procedures. Co-operate with other governments. Workshop: Anti-Corruption Action Plan Construction Sector PR 132. © 2010 GIACC 90 Internal anti-corruption controls Government departments should implement good internal anti-corruption controls on the same basis that private sector corporations do. The next section of this workshop “Corporate Anti-Corruption Actions” will give an explanation of the type of internal anti-corruption controls which government departments should implement. Workshop: Anti-Corruption Action Plan Construction Sector PR 133. © 2010 GIACC 91 Procurement & project management controls Governments should implement effective procurement and project management controls over public sector projects: Implement adequate project anti-corruption measures. See workshop section “Project anti-corruption actions”. Require companies bidding for public sector projects to have implemented adequate anti-corruption measures within their organisation. See workshop section “Corporate anti-corruption actions”. Workshop: Anti-Corruption Action Plan Construction Sector PR 134. © 2010 GIACC 92 Approval procedures and permits Governments should reduce the risk of corruption in the granting of approvals and permits by government officials: Reduce number of approvals and number of people required to issue approvals to minimum necessary. Appoint senior officer to handle complaints of extortion. Publish details. Establish and publish list of official fees, time-scales and required documents. Compensate any organisation prejudiced by unreasonable delay in dealing with application. Pay public sector employees a reasonable wage on time. Workshop: Anti-Corruption Action Plan Construction Sector PR 135. © 2010 GIACC 93 Reporting The government should establish procedures to enable the public to report details of suspected corruption. Reporting systems should be widely publicised. People should be able to report by telephone, letter, or e-mail. Reports should be capable of being given anonymously. Confidentiality of sources should be protected. Workshop: Anti-Corruption Action Plan Construction Sector PR 136. © 2010 GIACC 94 Co-operation with other countries Preventing corruption will be more effective with inter-governmental co-operation. Governments should increase their efforts to work with other governments, and with appropriate international institutions, to ensure that all countries properly implement their obligations under the UN, OECD and other international anti-corruption conventions and agreements. Workshop: Anti-Corruption Action Plan Construction Sector PR 137. © 2010 GIACC 95 Co-operation with industry and civil society Government, industry and civil society should work more openly and actively with each other to develop and implement effective anti-corruption mechanisms. Workshop: Anti-Corruption Action Plan Construction Sector PR 138. © 2010 GIACC 96 Preventing corruption:Corporate actions ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 139. © 2010 GIACC 97 Need for corporate anti-corruption measures Government departments, project owners (public and private sector), funders, contractors, consulting engineers, and major sub-contractors and suppliers should all adopt anti-corruption measures within their organisation. The following measures apply to all these types of organisations. The measures should be adapted according to the type and size of the organisation. Workshop: Anti-Corruption Action Plan Construction Sector PR 140. © 2010 GIACC 98 (1) Board responsibility for programme The board of directors, or equivalent management body, should take responsibility for the effective implementation of the organisation’s anti-corruption programme. The board should take active steps to ensure that senior management is aware of and accepts the programme. Workshop: Anti-Corruption Action Plan Construction Sector PR 141. © 2010 GIACC 99 (2) Compliance manager A senior manager should be made responsible for ensuring that the organisation implements and complies with its anti-corruption programme. The manager should be provided with proper authority to implement and monitor all programme activities and should have direct and prompt access to the chief executive and board of directors. Workshop: Anti-Corruption Action Plan Construction Sector PR 142. © 2010 GIACC 100 (3) Anti-corruption code The organisation should develop a code of conduct which includes an anti-corruption element, and publish this code on its website. Workshop: Anti-Corruption Action Plan Construction Sector PR 143. © 2010 GIACC 101 (4) Employment procedures Employees should be vetted before they are employed to ascertain as far as is reasonable that they are ethical. Employment contracts should include contractual obligations and penalties in relation to corruption. New employees should be informed of the organisation’s anti-corruption code. Employees should be required to declare any conflict of interest. Caution should be taken in the provision of performance bonuses and targets to ensure they do not encourage corruption. Disciplinary procedures should entitle the organisation to take disciplinary action against an employee who commits a corrupt act. Workshop: Anti-Corruption Action Plan Construction Sector PR 144. © 2010 GIACC 102 (5) Gifts/hospitality policy The organisation should develop and implement a gifts and hospitality policy whereby it either prohibits the giving or acceptance of all gifts, hospitality, and donations, or sufficiently limits and monitors this activity. Workshop: Anti-Corruption Action Plan Construction Sector PR 145. © 2010 GIACC 103 (6) Training The organisation should provide anti-corruption training on a regular basis to all relevant employees to make them aware of the types of corruption, the risks of engaging in corrupt activity, the organisation's anti-corruption code and procedures, and how they may report corruption. Workshop: Anti-Corruption Action Plan Construction Sector PR 146. © 2010 GIACC 104 (7) Due diligence Before entering into any business relationship or project, the organisation should carry out due diligence on the following aspects in order to identify as far as possible the risk of corruption. Entering a new country Undertaking business with a new project owner Undertaking a new project Working with a new business partner Working with a new agent Workshop: Anti-Corruption Action Plan Construction Sector PR 147. © 2010 GIACC 105 (8) Decision-making process The organisation should implement a decision-making process whereby the decision process and the seniority of the decision-maker is appropriate for the value of the transaction and the perceived risk of corruption. Workshop: Anti-Corruption Action Plan Construction Sector PR 148. © 2010 GIACC 106 (9) Anti-corruption contract terms All contracts between the organisation and its business partners should contain anti-corruption contract terms which provide express contractual obligations and penalties in relation to corruption. Workshop: Anti-Corruption Action Plan Construction Sector PR 149. © 2010 GIACC 107 (10) Financial controls The organisation should ensure that its financial controls minimise the risk of the organisation committing a corrupt act against another individual or organisation (e.g. employees, clients, business partners, contractors or suppliers), or of any corrupt act being committed against the organisation by another individual or organisation. Workshop: Anti-Corruption Action Plan Construction Sector PR 150. © 2010 GIACC 108 (11) Commercial controls The organisation should ensure that its commercial controls minimise the risk of the organisation committing a corrupt act against another individual or organisation (e.g. employees, clients, business partners, contractors or suppliers), or of any corrupt act being committed against the organisation by another individual or organisation. Workshop: Anti-Corruption Action Plan Construction Sector PR 151. © 2010 GIACC 109 (12) Detection procedures The organisation should implement internal audit or other processes which check projects, contracts and systems, on an appropriate sample basis, for any indication of corruption. Checks should cover both financial and technical aspects. Workshop: Anti-Corruption Action Plan Construction Sector PR 152. © 2010 GIACC 110 (13) Reporting procedures The organisation should implement procedures which enable employees to report corruption in a safe and confidential manner to a responsible senior officer of the organisation. Workshop: Anti-Corruption Action Plan Construction Sector PR 153. © 2010 GIACC 111 (14) Enforcement procedures If there are reports of corruption, the organisation should investigate and take appropriate action. Workshop: Anti-Corruption Action Plan Construction Sector PR 154. © 2010 GIACC 112 (15) Risk assessment The organisation should on a regular basis assess the risk of corruption in its business, and assess whether its procedures and controls are adequate to minimise those risks. Workshop: Anti-Corruption Action Plan Construction Sector PR 155. © 2010 GIACC 113 Preventing corruption:Project actions ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 157. It can occur during any phase of a project including: project selection, funding, planning, design, tendering, execution, operation and dispute resolution. 160. PACS is a set of anti-corruption measures which impact on all major project participants throughout the project cycle 162. The PACS Templates: These provide the tools by which the measures recommended in the PACS Standards may be implemented.See: www.giaccentre.org/project_anti_corruption_system_home.php Workshop: Anti-Corruption Action Plan Construction Sector PR 163. © 2010 GIACC 116 PACS Standards PS 1: Independent assessment PS 2: Transparency PS 3: Procurement PS 4: Pre-contract disclosure PS 5: Project anti-corruption commitments PS 6: Funder anti-corruption commitments PS 7: Government anti-corruption commitments PS 8: Raising awareness PS 9: Compliance PS 10: Audit PS 11: Reporting PS 12: Enforcement Workshop: Anti-Corruption Action Plan Construction Sector PR 165. His duties should be tailored to suit the size of project. He can be part-time or full time. He can be appointed to oversee one project, or a number of projects. 167. The cost of the independent assessor must be proportionate to the value of the project. 168. The savings in corruption costs are likely to be significantly greater than the cost of the independent assessor.Workshop: Anti-Corruption Action Plan Construction Sector PR 170. © 2010 GIACC 119 PS 3: Procurement The project owner should implement fair and transparent procurement procedures which do not provide an improper benefit or advantage to any individual or organisation. Workshop: Anti-Corruption Action Plan Construction Sector PR 173. The chief executive and finance director of the project owner and each tenderer must provide a warranty that the information disclosed is true to the best of their knowledge and belief, and that they are aware that providing false information may be a criminal offence.Workshop: Anti-Corruption Action Plan Construction Sector PR 175. © 2010 GIACC 122 PS 6: Funder anti-corruption commitments The project owner and each project funder (equity investor, bank or guarantor) should provide anti-corruption contractual commitments to each other which expressly cover the main types of corruption, and which oblige them to implement anti-corruption measures. Remedies and penalties should be specified in the event of breach of these commitments. Workshop: Anti-Corruption Action Plan Construction Sector PR 177. They should appoint a senior officer to whom complaints of bribery and extortion can be made, and should publicise a list of fees and time-scales which apply to government procedures. 178. (The above steps are in addition to adoption of PACS by government project owners.)Workshop: Anti-Corruption Action Plan Construction Sector PR 180. Individuals must be made aware of the risk, to themselves and their employers, of civil and criminal liability for bribery and fraud. 181. Major project participants should raise awareness among their staff of the damage and risks of corruption by:Informing staff of the anti-corruption policy. Posting up anti-corruption rules at all project and site offices. Providing anti-corruption training for relevant staff. Implementing a gifts and hospitality policy. Workshop: Anti-Corruption Action Plan Construction Sector PR 182. © 2010 GIACC 125 PS 9: Compliance Major project participants should appoint a compliance manager who will take all reasonable steps to ensure compliance by the company and its management and staff with their anti-corruption commitments. Workshop: Anti-Corruption Action Plan Construction Sector PR 184. Technical audits should be carried out to ensure as far as possible that the project design, specification and construction are in accordance with good technical practice and provide value for money. 185. Auditors should be aware of the risk that any deficiencies they identify may be caused by corruption, and should make appropriate reports. Workshop: Anti-Corruption Action Plan Construction Sector PR 187. © 2010 GIACC 128 PS 12: Enforcement There should be civil enforcement measures for breach of anti-corruption commitments (e.g. disqualification from tender, termination of contract, damages, and dismissal from employment). The risk of criminal enforcement (e.g. fines and imprisonment) should be highlighted. Reports should be made to the criminal authorities if appropriate. Workshop: Anti-Corruption Action Plan Construction Sector PR 198. © 2010 GIACC 130 Who chooses to implement PACS? A government may choose to implement PACS on all construction projects over a specified minimum value. Alternatively, a government or a private sector developer may choose to implement PACS on specific major projects. A funder may require that PACS is implemented on projects which it is financing in order to help safeguard its investment. Workshop: Anti-Corruption Action Plan Construction Sector PR 199. © 2010 GIACC 131 How to implement PACS For whole country: A government may implement PACS by enhancing the legal, regulatory and contractual framework for its construction projects so as to accord with the PACS Standards. For specific projects: A public sector or private sector project owner may implement PACS by enhancing the contractual framework for specific construction projects so as to accord with the PACS Standards. In doing so, they may adopt some of the PACS Templates, or may use them to benchmark against their own documents and procedures. Workshop: Anti-Corruption Action Plan Construction Sector PR 205. Satisfy public that corruption being tackledWorkshop: Anti-Corruption Action Plan Construction Sector PR 206. © 2010 GIACC 133 Preventing corruption:Professional institution actions ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 207. Topics Professional Institutions Actions Role of Professional Organizations Professional Institutions Actions Professional Mobility Code of Ethics Training & Continuing Education Investigations Process Sanctions Implement Action Plan 208. © 2010 GIACC 135 Professional institution actions Professional institutions should take the following steps: Publicly speak out against corruption. Adopt and promote ethical codes which include prohibition of corruption, and sanctions for corruption by members. Provide anti-corruption training and guidance to their members to ensure that they are aware of the nature and risks of corruption, and how to prevent it. Promote the implementation of anti-corruption measures as an integral part of corporate and project management. Work in collaboration with other professional and business institutions, government bodies, funders, and companies. Workshop: Anti-Corruption Action Plan Construction Sector PR 209. Role of Professional Organizations Establish clear statements on: Ethics Standards of Conduct Conflicts of Interests Leadership in promoting ethics Training of : Members General Public 211. Code of Ethics Establish clear and simple codes Establish Standards of Conduct Include training Make them public 212. Training & Continuing Education Mandatory Ethics Training Establish formal training for new members Establish annual refreshers: Formal On-line 215. Sanctions Tied to: Code of Ethics Standards of Conduct Measurable with ofense Rehabilitation 216. Champions Designate Champions Provide necessary resources Multidisciplinary Develop Action Plan Involve all stakeholders Publicize: Rules Sanctions Register 217. Implement Action Plan Internal within Organization Stakeholders Involvement Adapt GIACC documents to specific requirements Tailor documents to local requirements Incremental: Establishment Enforcement 218. © 2010 GIACC 145 Workshop DiscussionAnti Corruption Action PlanConstruction Sector ____________________ Workshop: Anti-Corruption Action Plan Construction Sector PR 219. Stakeholders Professionals Engineers Architects Surveyors Accountants Planners Attorneys Contractors Prime Contractors Sub Contractors Suppliers Government Federal State Local Funders Banks Grants Organizations Insurance and Surety Owners and Developers Non Governmental Organizations Academia Media Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 146 220. Moving to Action Groups Formation Additional Training Develop Work Plan Assessments Web-based Publicity Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 147 221. The Way Forward Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 148 222. Thank You For Participating Workshop: Anti-Corruption Action Plan Construction Sector PR © 2010 GIACC 149
