Directorate for Public Governance
Infrastructure: managing threats to integrity
OECD Framework for the Governance of Infrastructure
2. MANAGING THREATS TO INTEGRITY
Corruption entry points should be mapped at each stage of the public infrastructure project, and integrity and anti-corruption mechanisms should be enhanced.
A whole of government approach is essential to effectively address related integrity risks.
WHY IS IT IMPORTANT?
The scale and complexity of the projects, as well as the multiplicity of stages and stakeholders involved, make infrastructure projects highly vulnerable to corruption.
- 10-30% of the investment in a publicly funded construction project is lost through mismanagement and corruption (CoST, 2012).
- Within the European Union, corruption costs are estimated to EUR 120 billion per year (European Commission, 2014).
- 60% of foreign bribery cases occurred in 4 sectors highly related to infrastructure: extractive (19%), construction (15%), transport and storage (15%) and information and communication (10%) - (OECD Foreign Bribery Report, 2014).
KEY POLICY QUESTIONS:
- Prevent public officials and private sector employees from accepting or demanding bribes?
- Adequately identify and manage potential and apparent conflict-of-interest situations?
- Regulate and limit the use of confidential information by public officials?
- Prevent the selection of public investment from favouring a particular interest group/individual over the public interest?
- Ensure the objectivity and credibility of social, economic and environmental feasibility studies?
- Limit the influence of potential private operators, construction companies or lenders?
- Ensure that the design of the tender documents and specifications are not restrictive or tailored?
- Prevent bid rigging, collusion or market-sharing agreements of future contracts in a public investment?
- Ensure audit functions have adequate capacity and resources to provide timely and reliable audits, as well as to remain insulated from manipulation of audit processes?
- Adequate conflict of interest policies for public officials (prohibitions of exercising certain activities or holding certain interests; post-employment measures; disclosure; advisory services);
- System of internal controls and financial reporting to monitor and identify irregularities;
- Measures in place to control the integrity of firms wishing to contract with public bodies;
- Existence of mechanisms to report wrongdoing related to infrastructure projects;
- Presence of sufficient technical resources within the organisation responsible for organizing public tenders;
- Existence of political contribution limits and spending limits in relation with election campaigns;
- Existence of standards regulating lobbying activities and ensuring they are conducted in a transparent manner.
60% OF FOREIGN BRIBERY CASES OCCURRED IN JUST 4 SECTORS
GETTING INFRASTRUCTURE RIGHT
Also AvailableEgalement disponible(s)