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Integrity Pact & its traits

The Integrity Pact is a tool developed during the 1990s by Transparency International (a non-governmental organization). It aims at fighting corruption in the field of public contracting.

It consists of a process that includes pact / agreement between Transparency International and a government or government department / PSU to implant Integrity Pact Program of Transparency International.

The essential elements of integrity Pact Program are:

- A pact / agreement among government offices (the principal) inviting public tenders for any type of contract related to goods and services and the bidders;

- An undertaking by the Principle that its officials will not demand or accept any bribes, gifts, etc. with appropriate disciplinary or criminal sanctions in case of violation;

- A statement by each bidder that it has not paid, and will not pay, any bribes in order to obtain or retain a contract;

- An undertaking by each bidder to disclose all payments made in connection with contract in question to anybody (including agents and other middlemen as well as family members etc.);

- The explicit acceptance by each bidder that the non-bribery commitment and the disclosure obligation, as well as the corresponding sanctions, remain in force for the winning bidder until the contract has been fully executed;

- Bidders are advised to have a company code of conduct (clearly rejecting the use of bribes and other unethical behaviour) and a compliance programme for the implementation of a code of conduct throughout the company;

- The use of arbitration as a conflict resolution mechanism and the instance to impose sanctions;

- A pre-announced set of sanctions for any violation by a bidder of its commitments or undertakings, including

o forfeiture of the bid security and performance bond
o liability for damages to the principle and the competing bidders, and
o blacklisting of the bidders / debarment of the violator by the principal for an appropriate period of time.

- An Independent monitoring system in place




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