The Corruption Cost Tracker: Quantifying the costs of corrupt contracting and the savings to be made from reform

Fazekas, M., Dávid-Barrett, E., Abdou, A., Basdevant, O.  (2020). The Corruption Cost Tracker: Quantifying the costs of corrupt contracting and the savings to be made from reform. GTI-R/2020:02, Budapest: Government Transparency Institute.

Public procurement constitutes about one-third of government spending or 13 trillion USD per year. It is highly vulnerable to corruption with estimates of losses amounting to 10-20%. Corruption in public procurement can lead to: 1) Overpriced public procurement contracts contributing to larger budget deficits. 2) Unfinished, sub-standard delivery or lower than contracted quantity leading to the need for further public expenditure or lost revenue. 3) Adverse impact on …

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India’s Federal Procurement Data Infrastructure: Observations and Recommendations

Adam, I., Tóth, B., Dávid-Barret, E., Fazekas, M. (2020). India’s Federal Procurement Data Infrastructure: Observations and Recommendations. GTI-R/2020:1, Budapest: Government Transparency Institute.

Improving transparency in public procurement, that is publishing more and better-quality data, supports accountability by enabling greater scrutiny over processes and outcomes as well as helping to achieve greater competition and better value for money. In India, according to the Ministry of Finance General Financial Rules (2017), all procuring authorities are responsible and accountable for ensuring transparency, fairness, equality, competition and appeal rights in contracting. The transparency principle is about making information easily accessible to the public: it …

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Single bidding and non-competitive tendering procedures in EU co-funded projects

Fazekas, M. (2019). Single bidding and non-competitive tendering procedures in EU co-funded projects. Brussels: European Commission Directorate-General for Regional and Urban Policy.

Transparency, efficiency and competition in public procurement are essential for ensuring sound investments resulting in concrete benefits for both businesses and citizens. The 7th Cohesion Report pointed out that open and transparent public procurement is essential to promote development and reward the most efficient firms. However, the use of open procedures, the intensity of competition and the speed of decision-making as well as the risk of corruption varies markedly between regions.

In particular, single bidding, or procurement …

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Analytics for Integrity: Enhancing Integrity Risk Assessments through Data-Driven Approaches

OECD (2019). Analytics for Integrity: Enhancing Integrity Risk Assessments through Data-Driven Approaches. Available at: https://www1.oecd.org/gov/ethics/analytics-for-integrity.pdf

Effective risk management in infrastructure projects relies on strategic and robust risk assessments in order for managers to identify risks and adapt controls to mitigating them. Risk assessments are often qualitative, relying on observations of employees and experts involved in the projects. To complement these perception-based approaches, those responsible for managing risks in infrastructure—project managers, procurement officials and risk managers—can take advantage of data analytics to further isolate risks and ensure they calibrate control activities appropriately. Doing so, requires investments and planning, and avoiding ad …

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Objective corruption risk indicators that use donor project and contract data

Fazekas, M. & Márk, L. (2017). Objective corruption risk indicators using donor project and contract data. GTI-R/2017:02, Budapest, Government Transparency Institute, September 2017.

To validate our red flags we use macro level perception-based indicators and test if these move together with the country-level averages of our red flags. We also try to find testable micro level relationships either on contract- or project-level data and check if different red flags are consistent with each other. The three donors largely differ in the range of available variables and red flags. World Bank data is the richest, while we have much more limited

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