How Civil Society Can Enhance Transparency and Accountability in infrastructures projects: TI-Rwanda Experience through Integrity Pact tool
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1 How Civil Society Can Enhance Transparency and Accountability in infrastructures projects: TI-Rwanda Experience through Integrity Pact tool MUPIGANYI Apollinaire Executive Director, TI-Rwanda Kigali, Rwanda 26 th September 2017
2 Content I. About our movement and TI-RW II. Importance of public procurement in infrastructure sector III. Risks of corruption in infrastructures sector IV. Negative Impact of Corruption on African Economies V. Levels of corruption in Africa VI. Integrity Pact, an anti-corruption PPP tool I. Methodology II. Projects monitored and key findings VII.Conclusion
3 About our global movement and TI-RW TI is the leading CSO fighting corruption globally The global civil society organisation leading the fight against corruption, brings people together in a powerful worldwide movement to help bring to an end the devastating impact of corruption on men, women and children around the world. The TI Movement is comprised of: Almost 100 independent National Chapters (NC s). Over 30 Individual Members (IM s). The International Secretariat (Secretariat) in Berlin with both staff and volunteer Senior Advisors. 3
4 TI AROUND THE WORLD
5 East West Central Southern North NCs - Burundi Ghana Cameroun Madagascar Morocco 17 - Kenya - Rwanda - Uganda Senegal Sierra Leone Liberia Niger Mauritius Mozambique Zambia Zimbabwe South Africa NCiF Ethiopia 1 Ct. Seychelles - Nigeria - Cote d Ivoire -Benin, - Mali, - Congo - DRC Malawi Tunisia 10
6 About TI-Rw 2004 The idea of creating TI-Rw originated from some Rwandan citizens who were determined to give the country an enabling environment to achieve sustainable development, bearing in mind the numerous negative effects of corruption. LAW N 04/2012 of 17/02/2012 governing non governmental organizations in Rwanda
7 Risks of corruption in infrastructures projects In Developing countries, state investiments constitute a big proportion of national GDP Huge budget allocated to the infrastructure sector: in Rwanda, this amount is more less 60% of the annual district budget; High risk and perceptions of corruption in infrastructures sector;
8 Impact of Corruption on Economies Proceeds of bribery and theft by government officials made only 3% of cross border flow of illicit money around the world, Proceeds from tax evasion and trade mis-pricing constitutes % of the global total. Drug trafficking, racketeering and counterfeiting make up 30-35%. 8
9 Negative impact of Corruption on Economies According to the AU, around $ 148 billions are stolen from the continent by its leaders and civil servants/ year. This is approximately 40% of Africa s GDP. In the last four decades, Africa has lost more than 1 trillion in illegal financial flows most of this to western financial institutions. (Global Financial Integrity Report) 9
10 Impact of Corruption on Economies The Africa Progress Panel Report 2013 estimates that Africa loses a total of $38.4 billion a year through trade mispricing and $25 billion through other illicit flows. This is more than what Africa receives through aid and foreign direct investment. 10
11 Rank Levels of corruption: CPI 2016: Global scores, 176 countries ranked Country/Ter ritory Score 2016 Denmark 90 New Zealand 90 3 Finland 89 4 Sweden 88 5 Switzerland 86 Rank Country/ Territory Score 2016 Sudan 14 Libya 14 Yemen Syria Korea ( North) South Sudan Somalia 10 Source: TI, CPI 2016
12 Top 5 Least corrupt countries in Sub-Saharan Africa (CPI) Rank 2016 Country/Territory Score Botswana 60 2 Cape Verde 59 Mauritius 54 3 Rwanda 54 5 Namibia 52 6 Senegal 45 South Africa 45 Rank 2015 Country/Territory Score Botswana 63 Cape Verde 55 2 Seychelles 55 4 Rwanda 54 5 Mauritius 53 Namibia 53 Source: TI, CPI
13 Africa is not damned of corruption and Poverty is not equal to Corrupt CPI score 2016 The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators Rwanda Tanzania Burundi Uganda 10 0 Kenya Sources: TI, CPI 2016 UNDP, Human Development Index 2014 Human Development Index 2014
14 Integrity Pact, an anti-corruption PPP tool 10/13/
15
16 What is an Integrity Pact Useful For? Objectives: Enables companies/contractors to abstain from bribing Others will not bribe Government authority takes measures to prevent corruption/extortion Enables governments to reduce high costs and distorting impact of corruption In addition, the IP seeks to contribute to Building up public confidence in the procurement system Improving the investment climate
17 What Is an Integrity Pact? Formal Agreement between a Government Agency and Bidders for Public Contracts Establishes rights and obligations between parties Provides for sanctions in case of violation Provides for Alternative Dispute Resolution Process occurring during all stages of procurement Increased transparency External, independent monitoring Detection of risks/red flags, facilitating corrective measures Applicable to all sectors & types of contracts
18 Monitoring & Evaluation When & Where IPs Work? Project Cycle Policy Making/ Project Planning Needs Assessment Identify Demand Design & Bid Documents Preparation Project Design Project Implementation Final Accounting, Audit Procurement Process Contractor Selection, Contract Award & Signing Contract Execution Operation
19 IP in Rwanda: Steps for its implementation Pilot in Huye Kayonza Musanze Rubavu funded by GIZ Meetings with relevant officials Workshop with district technicians, coalition members Training of district staff, private sector and CSOs (identification of projects) Signing of MoU with Districts Recruitment of independent monitor Initial field visits Signing of IP in districts Contract Implementation
20 How to implement IPs Rwandan Public Procurement Monitoring Coalition Transparency International Rwanda: Leading Organization Rwandese Association of Local Governments Authorities (RALGA) Private Sector Federation (PSF) Association des Entrepreneurs du Bâtiment et Travaux Publics (AEBTP) Rwanda Public Procurement Authority (RPPA) Rwanda Association of Architects (RAA) Rwanda Governance Board (RGB)
21 The Monitoring The TI-Rw Recruited an Individual consultant as Independent Monitor (IM) of the monitoring of the Integrity Pact His role is to review, independently and objectively, whether and to what extent the parties comply with the obligations under the agreement between the Districts and the bidders The IM is an Expert in infrastructure/construction and in Procurement
22 The Monitoring
23 Projects monitored by TI-RW in 2016 In 2016, 9 infrastructure projects were monitored in 4 Districts of the country. The total project amount is 15.1 billion RWF Rubavu: Construction handicraft center (Gisenyi), Phase III Rehabilitation feeder road Bihungwe-Kanyundo Rehabilitation feeder road Ku Kiraro-Busasamana- Mpuzamahanga Huye: Maintenance Simbi-Kizi road Rehabilitation Simbi- Kabakobwa-Digue Mwogo road Musanze: Construction Nyakinama road Construction Nyange Health Center Kayonza: Construction Fawe-Video- Imbuto z Amahoro road (Gahini) Creation earth roads (Kabarondo)
24 Recurrent red flags identified Delay of works Dates for provisional reception not respected Unnecessary requirements in the bidding document Decreasing participation of bidders during the bidding phase Delay of approbation of project crosschecking by successful bidder Delay of approbation of contract extensions Poor project design Delay of payment Source: Data from OAG s audit reports of Districts and the City of Kigali (Financial Year ), compiled by TI-RW
25 Conclusions 1. Corruption in infrastructure projects has a negative impact on poverty alleviation and infrastructural development. Stakeholders need to join forces for better prevention, government authorities need to ensure that perpetrators are apprehended and assets recovered. 2. Citizens need to be informed and to be given the opportunity to participate in the planning and monitoring of infrastructure projects. 3. Procuring entities need to do more to ensure that contractors fulfill their obligations towards auxiliary workers, make compensation payments in time and conduct a transparent and corruption-free recruitment process. 4. Independent monitoring of public procurement processes by citizens, civil society, private sector and government authorities through a multistakeholders country public procurement group is a necessity to ensure that problems are identified. 5. IP tool should be institutionalized across the continent to end the misuse of public funds through corrupted behaviors (Public and private actors)
26 Murakoze
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