procurement and integrity/media...hambalang driving license sport complex case simulator case source...
TRANSCRIPT
Procurement and Integrity
Laode M Syarif, Ph.D Senior Adviser on Justice and Environmental Governance
Partnership for Governance Reform www.kemitraan.or.id
Presented at Danish Embassy Jakarta 22 January 2013
• “… it is impossible for one dealing with government funds not to TASTE, at least a little bit, of the King’s wealth”
(Kautilya, The Arthashastra, 350-283 BC)
• “Do Not let Corruption to become part of the Indonesian culture (Muhammad Hatta, 1961,)
Why … Indonesia URGENTLY needs Good Procurement system ?
• DENMARK: Score 91 /Ranking 1 • Indonesia Score 32 of 100 • Ranking 114 of 177 State • Under: Niger, Philippines, Ethiopia, and Niger.
Note: we are a member of G-20
We are not Denmark
Corruption Trend
2011 Semester I- 2012
436 Corruption cases 285 corruption cases
1.053 accused person 597 accused person
State lost Rp. 2.169 Triliun State lost 1.22 Triliun.
Sumber: ICW-Trend Korusi 2011 & Semester I 2012
Most Corrupt Sector 2010-2011
2010 2011
Infrastructure (85 cases) Education (54 cases)
Local gov budget (82 cases) Local gov budget (51 cases)
Education (47 cases) Social aid (42 cases)
Sumber: ICW-Trend Korusi 2011
10 Most Corrupt Sector 1st Semester 2012
Sumber: ICW-Trend Korusi Semester I-2012
• Misappropriation • Misused of State budget
• Bribery • Mark Up
• Actors: executive-parliament-law enforcement agencies-judiciary-Businessmen/women
• Example: more than 300 Head of Districts/Cities are
prosecuted/investigated on corruption cases
Modus: Sem I-2012
Sumber: ICW-Trend Korusi Semester I-2012
Most Vulnerable Intuitions to Corruption
• Local Government
• Provincial Government
• State Owned Companies
• Parliament
• Ministries/State Agencies Note: Number of cases mostly occurred at sub-national but the amount
of money involved is less compared to Central Gov corruption
Sumber: ICW-Trend Korusi 2011
Survey: Corruption in Procurement-
Ja-Bo-De-Ta-Bek, 2010
• Respondent: 720 vendors • 92,7% respondents admitted that they bribe officials. • ONLY 1,3% respondents was not involved in bribery.
Main reasons: • To win the tender (89,7%).
• Gift to the owner of the project (4,3%) and • A sign of ‘Gratuity’ (3,9%).
Source: Indonesia Procurement Watch, 2010
Just a few examples
Hambalang Sport Complex Case Driving License
Simulator Case
Source of Corruption Potential 2014
Gov Employ Expenditure
Capital Expenditure: Infrastructure, etc
Subsidy: Rp 333.7 T - Energy : Rp282.1 T
- Non-Energy: Rp51,6 T
Social Aid:
APBN 2014 Rp 1.842,5 Triliun
‘all of them are prone to corruption’
How to save our APBN 2014 ?
Source: Kemitraan, State of Play of Anti Corruption, 2010
Comprehensive Strategy
Closing the Loop
Compliance training
Integrity testing
Zero tolerance policy
Code of Conduct
Business collective Action
Supplier ‘white list’
Reward to whistle blower
Integrity Pact
Medium Return, Medium Risk
Community Integrity Building
Multi-stakeholder initiatives with oversights
Holistic/step change
High Return, High Risk
Whistle blower hotline
Whistle blower protection
Supplier ‘black-list’
Low Return, Low Risk
Ethics advice center Ethics officer
Code of Ethics
Compliance-plus ethics
Low Return, Low Risk
COMPLIANCE INTEGRITY
R E A C T I V E
P R O A C T I V E
National Procurement System is one of the main tools to prevent corruption,
inefficiency and collusion
E-Proc Institutional Structure
• Limited Human Resources • Nation-wide responsibility but only has an office in Jakarta
• Insufficient E-Procurement Network
We CAN NOT relay 100% to LKPP
Where we learn from …..?
UNCITRAL Model Law on Procurement of Goods, Construction and Services with Guide to
Enactment
• General provisions
• Method of procurement & their conditions for use
• Tendering proceedings
• Principal method for procurement of services
• Procedures for alternative methods of procurement.
• Review
Article 9.
Public procurement and management of public finances
1. Each State Party shall, in accordance with the fundamental principles of its legal system, take the necessary steps to establish appropriate systems of procurement, based on transparency, competition and objective criteria in decision-making, that are effective, inter alia, in preventing corruption.
Indonesia has ratified this Convention by UU No 7 /2006 on UNCAC
4 pillars of Indonesia’s e-Proc System
Strong legal basis
E-Proc Prevent
Corruption and
inefficiency
Professional and
accountable Institution
Accommodate public
Participation
Kemitraan’s Intervention
• Government
• Private sector
• Civil Society Organisations (CSOs)
Government
• Evaluating and ‘revising’ the existing Procurement Policy
• Dissemination & adaptation of new e-procurement system/policy at sub-national level.
• Establishing e-proc agency at sub-national level. • Training government officials • Drafting ‘pro SMEs’ sub-national regulation
Private Sector
• Training SMEs on E-proc in 12 provinces
• Disseminating E-Proc policy in 18 provinces
• Conducting Assessment on Procurement Integrity Index in EIGHT provinces. (Business & Media)
• Providing Module and Training for SMEs at local level.
Business Association
• Engaging Business Associations and Chamber of Commerce (APINDO-KADIN-GAPEKNAS-GAIKINDO-ARDIN)
• Training and facilitating business association through ‘BERSIH’ (Business-Ethic-Rules- for the System of Integrity enHancement) movement.
• Drafting and mainstreaming ‘Ethic’ in business practices.
Lesson Learned
• Procurement reform requires ‘collaborative effort’ (Gov-Priv-CSO)
• SMEs at local level can win ‘big tender’ in e-procurement (Bandung & Makassar case).
• Private sector needs ‘neutral forum’ to meet/discuss their problems with Government and CSOs.
• E-proc institutions in Papua-East Java-South Sulawesi-Central Kalimantan-West Java show some good achievements.
• E-proc can reach remote areas (West Sumatera/Riau).
New Initiatives
• Establishing ‘Independent Procurement Monitoring Network’ (involving companies and People) in 5 provinces
• Certification of company who implement ‘BERSIH’ …. will be Certified by APINDO.
• Up-scaling and expanding our ‘success stories’.
Closing note
“Written laws are like spider's webs; they will catch,
it is true, the weak and the poor,
but would be torn in pieces by the rich and powerful.”
- Anacharsis- Scythians Philosopher, 6 Century BC
We DON’T want this to happened
Laode M. Syarif, Ph.D Mobile: +62-8111- 899-689
Email : [email protected] Partnership for Governance Reform
(www.kemitraan.or.id)