Combating Collusion In Public Procurement

This book offers a clear and structured examination of how joint bidding structures comply with competition rules in Europe. It explains how joint-bids could be considered as agreements aimed at distorting competition, the practice commonly referred to as bid rigging. The book demonstrates how the conclusion of joint-bid agreements could constitute grounds for exclusion from public procurement proceedings under Article 57(4)(d) of Directive 2014/24/EU.

'Corruption' in public procurement typically involves procurement decisions taken in favour of preferred bidders in exchange for improper compensation (the acceptance of bribes, for example), while supplier collusion refers to a type of cartel activity, in which firms rig their bids in a tendering process. Although these practices are distinct, they frequently occur together in the public procurement context, reinforcing one another. Combatting Corruption and Collusion in Public Procurement: A Challenge for Governments Worldwide examines the causes of corruption and collusion in the public procurement sphere, its resulting harm, and how states can best try to combat these practices. This book provides a legal, economic, and practical analysis of issues concerning corruption and supplier collusion in public procurement, both generally and in seven diverse and representative jurisdictions: the United Kingdom, the United States, Brazil, Hungary and Poland, Ukraine, and Canada. It encompasses a discussion of both 'generic' cross-jurisdictional issues and specific proposals for individual jurisdictions. It offers practical guidance on building robust regimes for combatting corruption and collusion in public procurement and how to bolster and improve them when they are faltering. The book stresses the need for a multi-faceted and joined-up approach to the problems, emphasizing the importance both of enhanced investment in the effective enforcement of anti-corruption and cartel laws and of increasing the resilience of public procurement systems to corruption and collusion through a range of measures. The relevance of the topic to the social and economic well-being of citizens and the survival of democratic governance is highlighted throughout the book. Pioneering and comprehensive, Combatting Corruption and Collusion in Public Procurement provides a pathbreaking analysis of a range of global issues, making it an essential read for scholars, lawyers, government officials and representatives of international and non-governmental organizations around the world.

Ensuring efficiency and integrity throughout the public procurement cycle is essential to a sound allocation of taxpayers' money. Yet public contracts are plagued by corruption, collusion, favoritism and conflicts of interest. This book addresses these problems from sophisticated, academic, institutional and practical perspectives. The book's ambition is to shape the public debate in the procurement community by highlighting how corruption implies violations of fundamental rights and undermines the fiduciary relationship between citizens and public institutions. The analysis underlines how corruption may stem from - and yet be resolved - through the exercise of discretion in the public procurement system. Focusing on the effects of public corruption and private collusion on procurement integrity, the book marks the features of misconduct and suggests needed counter-measures. The work also emphasizes that the pursuit of efficiency and integrity in public contracts must be rooted in professional skills, and in ethical regulations and training for public officers. The research reflected in these pieces cornes from sources around the world, and offers an excellent foundation for further development of these topics. Expanding on prior research, this volume builds on a more active transnational academic cooperation and exchanges of ideas on integrity in public contracts for the benefit of citizens.

ÔThis volume is long overdue. Integrated legal and economic analysis of competition law is crucial given the nature of the sector. However to carry this off successfully, one either needs intensive editorial work to bring different teams together; or one has to rely on the few who master both economic and legal analysis to a tee. Stefan WeishaarÕs analysis not only looks at a stubborn issue in competition law. He does so in three jurisdictions, in detailed yet clear fashion, with clear insight and ditto conclusions. Over and above its relevance to academic analysis, this book can go straight into competition authoritiesÕ decision making, and therefore also in compliance and remediation advice.Õ Ð Geert Van Calster, University of Leuven, Belgium Cartels, Competition and Public Procurement uses a law and economics approach to analyse whether competition and public procurement laws in Europe and Asia deal effectively with bid rigging conspiracies. Stefan Weishaar explores the ways in which economic theory can be used to mitigate the adverse effects of bid rigging cartels. The study sheds light on one of the vital issues for achieving cost-effective public procurement Ð which is itself a critical question in the context of the global financial crisis. The book comprehensively examines whether different laws deal effectively with bid rigging and the ways in which economic theory can be used to mitigate the adverse effects of such cartels. The employed industrial economics and auction theory highlights shortcomings of the law in all three jurisdictions Ð the European Union, China and Japan Ð and seeks to raise the awareness of policymakers as to when extra precautionary measures against bid rigging conspiracies should be taken. Students and researchers who have a keen interest in the relationship between law and economics, competition law and public procurement law will find this topical book invaluable. Practitioners can see how economic theory can be used to identify situations that lend themselves to bid rigging and policymakers will be informed about the shortcomings of existing legislation from a legal and economics perspective and will be inspired by approaches taken in different jurisdictions.

The multilateral development banks cumulatively channel billions of dollars annually in development assistance to borrower countries. This finance is usually spent through processes that incorporate the public procurement regulations of the banks and it is often a condition of this finance that the funds must be spent using the procurement regulations of the lender institution. This book examines the issues and challenges raised by procurement regulation in the multilateral development banks. The book examines the history of procurement regulation in the banks; the tripartite relationship created between the banks, borrowers and contractors in funded procurements; the procurement documents and procurement cycle; as well as how the banks ensure competition and value for money in funded procurements. The book also examines the banks' approach to sustainability concerns in public procurement such as environmental, social or industrial concerns; as well as how the banks address the issue of corruption and fraud in funded contracts. Another issue that is addressed by this book is how the banks have implemented the aid effectiveness agenda. It will be seen that the development banks have undertaken steps to harmonise their policies and practices, increased borrower procurement capacity, taken steps to reduce the tying of aid, and play an important role in the reform of borrower procurement systems, all in an effort to improve the effectiveness of development finance. The book also considers the contractual and other remedies that are available to parties that may be aggrieved as a result of a funded procurement. The book analyses, compares and contrasts the legal, practical and institutional approaches to procurement regulation in the World Bank, the Inter-American Development Bank, the African Development Bank, the Asian Development Bank and the European Bank for Reconstruction and Development.

The OECD Principles for Integrity in Public Procurement are a ground-breaking instrument that promotes good governance in the entire procurement cycle, from needs assessment to contract management.

As governments are major buyers of goods and services, foreign companies are keen to be able to participate in procurement opportunities on an equal footing with national firms. This has given rise to the inclusion of procurement disciplines in trade agreements and to internationally-agreed good regulatory practices in this important policy area. The contributions to this book examine how the dynamic mix of bilateral, regional, plurilateral and international norms on government procurement is reflected in purchasing practices at the national level and whether these are leading to convergence in policies and approaches. The countries studied span both advanced, high-income economies and emerging economies. Some are members of the WTO procurement agreement, others are not. Most WTO members have decided not to commit to binding international disciplines on procurement in trade agreements. This book explores whether there has been nonetheless internationalization of good procurement practices, and what current public purchasing processes suggest as regards the value added of signing on to binding rules of the game in this area. The approach taken in in the volume is interdisciplinary.0Contributors include economists, political scientists, legal scholars, and practitioners with a solid understanding of both the extant international disciplines and national government procurement policies. Each chapter assesses the current state of play as regards legislation and procurement practices; the degree to which industrial policy considerations feature in the relevant regulatory frameworks; the existence and use of domestic dispute resolution and review procedures that allow firms to contest the behavior of procuring entities; and the availability of data on procurement processes and outcomes --Back of cover.

Anti-corruption measures have firmly taken centre stage in the development agenda of international organisations as well as in developed and developing countries. One area in which corruption manifests itself is in public procurement and, as a result, States have adopted various measures to prevent and curb corruption in public procurement. One such mechanism for dealing with procurement corruption is to debar or disqualify corrupt suppliers from bidding for or otherwise obtaining government contracts. This book examines the issues and challenges raised by the debarment or disqualification of corrupt suppliers from public contracts. Implementing a disqualification mechanism in public procurement raises serious practical and conceptual difficulties, which are not always considered by legislative provisions on disqualification. Some of the problems that may arise from the use of disqualifications include determining whether a conviction for corruption ought to be a pre-requisite to disqualification, bearing in mind that corruption thrives in secret, resulting in a dearth of convictions. Another issue is determining how to balance the tension between granting adequate procedural safeguards to a supplier in disqualification proceedings and not delaying the procurement process. A further issue is determining the scope of the disqualification in the sense of determining whether it applies to firms, natural persons, subcontractors, subsidiaries or other persons related to the corrupt firm and whether disqualification will lead to the termination of existing contracts. The book compares and contrasts the legal, practical and institutional approaches to the implementation of the disqualification mechanism in the European Union, the United Kingdom, the United States, the Republic of South Africa and the World Bank.