The Integrity Pact was developed by Transparency International as a tool for preventing corruption in public contracting in the 1990’s and has been applied in more than 15 countries and 300 separate contracts. It is a written agreement which commits tender parties to refrain from bribery and collusion and to contribute in carrying a transparent tendering process.
The main objectives of the Integrity Pact are:
• Prevention of corruption in public procurement
• Better management of public funds
• Development of better conditions for fair competition and equal opportunities for all businesses
Implementation of the IP in public procurement contributes to:
• Enhancing of transparency and integrity of tenders;
• Encouragement of cooperation between public administration and business;
• Early warning and identification of potential challenges;
• Effective civil control over performance of the bidders and the contractor of the public procurement;
• Effective civil control over performance of the contracting authority;
• Modernization of public administration;
• Promotion of business integrity and ethical standards.
The parties involved in the implementation of the Integrity Pact are three:
a. Contracting Authority b. Independent Monitor c. Tenderers
CONTRACTING AUTHORITY in the IP is a public authority (within the central or local government) which conducts the public procurement procedure. Obligations of the Contracting Authority include securing access to information to the Independent Observer in regard with the preparation and conducting of the tender, as well as about the contract implementation.
INDEPENDENT MONITOR is the other party of the Integrity Pact, which does not have direct involvement in public funds allocation. Usually this role is covered by an independent expert or a non-governmental organization that monitors all stages of the procurement process and the execution of the contract; therefore, the Independent Monitor identifies possible violation of the IP terms and makes recommendations for redress and future prevention. The Independent Monitor also produces regular reports, which are made available to the general public, thus strengthening public access to information.
TENDERERS consist the third party involved in the Integrity Pact. Tenderers are private persons (individuals) or legal entities who are eligible to bid for a particular contract. By acceding the Pact, tenderers undertake to follow rules and procedures in accordance with business ethics, to not violate fair competition principles and to ensure the Independent Monitor’s access to documents and information, relating either to their participation in the tendering process or to the execution of the contract, if awarded to them.