Diapositive 1 - Fédération québécoise des municipalités

Integrity in public
procurement and the fight
against corruption and
collusion
Presented to the
Fédération des municipalités du Québec
September 2014
PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉV
VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIF
ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQU
PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉV
Objectives
•
Relevant legislation & UPAC
• Corruption & Collusion schemes
• Your role in the fight against
and collusion
corruption
International context
Corruption Perceptions Index 2013 - Transparency International
Very
clean
CANADA
Highly
corrupted
2012-2013 Transparency International
Anti-Corruption Act
• Mission and powers of the Commissioner
• Prevention and fight against corruption
• Exchange of information
• Reporting wrongdoings / whistleblowing
• Prohibition against reprisal
Organisational
Structure of UPAC
Commissaire à la lutte
contre la corruption
Bureau de la lutte à
la corruption et à la
malversation (DPCP)
Centre de gestion
des signalements
Commissaire associé aux
vérifications de l’intégrité des
entreprises
Direction de la
prévention et des
communications
Commissaire associé aux
vérifications administratives
Direction des
opérations
Les partenaires :
 Sûreté du Québec (SQ)
 Revenu Québec (RQ)
 Régie du bâtiment du Québec (RBQ)
 Commission de la construction du Québec (CCQ)
 Escouade de protection de l’intégrité municipale (EPIM)
 Ministère
des Affaires
municipales
et deVÉRIFIER
l’Occupation
du territoire
(MAMOT)
PRÉVENIR
VÉRIFIER
ENQUÊTER
PRÉVENIR
ENQUÊTER
PRÉVENIR
VÉRIFIER ENQUÊTER PRÉV
 Sûretés
municipales
(Longueuil,
Montréal,
Châteauguay,
Laval,
Richelieu-St-Laurent,
VÉRIFIER
ENQUÊTER
PRÉVENIR
VÉRIFIER
ENQUÊTER
PRÉVENIR
VÉRIFIER
ENQUÊTER PRÉVENIR VÉRIF
ENQUÊTER
PRÉVENIR
VÉRIFIER
ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQU
Gendarmerie
royale
du Canada)
PRÉVENIR
ENQUÊTERdu
PRÉVENIR
 BureauVÉRIFIER
de la concurrence
Canada VÉRIFIER ENQUÊTER PRÉVENIR VÉRIFIER ENQUÊTER PRÉV
Who is subject ?
• Municipalities
• Local development centers (CRÉ, CLD)
• Public bodies or government agencies
• Universities, Cegeps, School boards,
private subsidised schools
• Child daycare centres, subsidised private
daycare
• Public health establishments
Integrity in
Public Contracts Act
• Any company that wants to conclude a
public contract or subcontract public must
obtain an authorization from the AMF
• Contracts and subcontracts for services
and construction of 10 M$ or more.
• Private-public-partnership contracts and
subcontracts of 10 M$ or more.
How does it work?
• Audits conducted by the
• Authorizations issued by
• Creation of the REA
(register eligible companies)
Corruption
&
Collusion
Corruption
Offers
Promises
Grants
EXCHANGE
Accepts
Receives
Asks
Corruption schemes
Progressive and insidious strategies
•
Research and collection of
privileged information
•
Manipulation by the lure of gain
•
Intimidation or blackmail
Corruption indicators
• Insistence to obtain sensitive information
• Close relationship between a civil servant
and a contractor
• Sudden and unexplained enrichment of an
employee
• Acceptance of questionable cost overruns
Collusion
AGREEMENT
Competitive
marketplace
Collusion schemes
• Cover/fake bidding
• Bid suppression
• Bid rotation
• Market division
Collusion indicators
• Same similarities or irregularities in bids:
similar writings, pricing structures,
misspellings
• Higher price for a given contract than for a
similar contract
• Withdrawal of a bid at the last minute
without explanation
• Biding is far below or far above the estimate
provided by the public body
Other wrongdoings
Corruption
&
Collusion
Influence peddling
Breach of trust
Fraud
Vulnerability factors
• Fonction
• Influence
• Homogeneous products
• Products with few or no close substitutes
• Supplier base with few new entrants
Your role
in the fight against
corruption and collusion
Leading role
Protect the integrity
in public
procurement
How to protect the integrity of
public contracts?
Individuals:
Observing the principles of ethics and
rules of conduct
Systems:
Ensuring good governance
Risky behaviour
Conflict of interest
•
Do you own a business
•
Do you have a commitment to a
second job
•
Do you intend to work with a
contractor on a public contract
•
Do you have family or friendship ties to
contractors
Risky behaviour
Disclosing confidential
information
• Estimated amount of the contract
• Available budget
• Bider’s identities
• Launch date of the tender
• Criteria or specifications
Risky behaviour
Using your position / influence to…
• Orient choices
• Modify estimates or quantities
• Lower quality expectations
• Accept unjustified cost overruns
Safeguards
Know your environment
• Statutes and Regulations
• Procedures & Guidelines
• Roles and Responsibilities
• Contractors/suppliers
• Market prices
• Substitute products, etc.
Safeguards
Best practices
• Implement effective internal controls
• Ensure transparency
• Promote principles of ethics and rules of
conduct
• Maintain a distance with contractors
• Question companies who did not bid
• Compare prices submitted with
other/previous contracts
Reporting wrongdoings
Zero tolerance
Any person who exercises any form of
reprisal is liable to a fine:
From $ 2,000 to $ 10,000 in the case of an
individual
From $10,000 to $250,000 in the case of a
corporation
For any subsequent offence,
the amounts are doubled
Reporting wrongdoings
The importance of reporting
To report is
to participate in the
fight against
corruption and
collusion in public
procurement
Reporting wrongdoings
Who can report?
•
Any person may disclose information
•
Notwithstanding any restriction on
disclosure and any duty of loyalty or
confidentiality linking them to their
employer
•
Except privilege between lawyer/
notary and client
Reporting wrongdoings
Facilitating measures
• Anonymity
• Prohibition against reprisal
Prevention capsules
4 capsules:
• contexte et définitions
• organisation et législation
• stratagèmes et facteurs de
vulnérabilité
• comportements à risque, mesures
préventives et signalement
• www.upac.gouv.qc.ca (allez dans
zone réservée)
Something to Report ?
Confidential
Phone number
1 888 444-1701
Report on
line
www.upac.gouv.qc.ca