PPCC Training Manual 9 (1).doc

Etc the process for contract award must therefore be

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etc The process for contract award must therefore be free, fair and transparent. The Phenomenon of Fraud Fraud is the act of misrepresentation of facts in order to influence the decision making of a public official in the discharge of his/her official duty to the detriment of the state. Drawing of false conclusions for recommendation, for award of contract on the premise favoritism, thus impairing fair, opened and transparent competition In public procurement this act defeats the purpose for competitiveness of the procurement process thereby depriving the state of the benefits of efficiency and economy in public expenditure. The essence of achieving value for money is thus defeated. The scarce resources of the state are wasted and an individual am illegal wealth. Combating Corruption The need to fight / combat corruption cannot be over emphasized. For it is very damaging to the public procurement process. It reduces confidence in governance and tends to slacken competition for government contracts and renders public procurement not only less economical but also not attractive to well qualified contractors/suppliers and consulting firms. It leads to waste of state resources and impedes governmental development in general. It is therefore imperative to have well informed control measures in place as a guide to all public officials involved in the public procurement management of any one state so as to reap the benefits of free, fair and open competitive procurement process. This calls for code of Ethics based on good moral and virtuous practices, on the part of all procurement practitioners. 14.1 Anti - Corrupt Measures Compliance with anti-corruption programmes is mainly a management problem, be it the government purchasing or on the side of suppliers/contractors suppling or providing services to government. Management must show commitment to the policy of strict adherence to the rules and must disseminate it to its employees on the policies, objectives and procedures in place to combat corrupt practices. Employees must be made aware of all legal consequences involved, such as criminal penalties, damages and loss of job or loss of approved status. Management must identify potential 'trouble spots' areas and introduce early warning mechanisms. The most effective anti-corruption measure in the procurement process is the control exercised by the competitors themselves, through public bid opening and through complaints. Whatever is witnessed at public bid openings and captured in minutes cannot be subsequently ignored. Access to information and documentation regarding the public procurement process should be a policy objective. Only the salient aspects leading to award of contract should be kept secret until award is made. 91
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Effective procurement audit procedures can also serve as deterrent to corruption. Auditors need to be given powers to make unannounced investigations and have full access to documentation. The independence of the auditors needs to be preserved.
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