Corruption in public contracting leads to a distortion of fair competition and frequently to the waste of scarce resources. In developing countries, this act contributes to the neglect of basic needs and to increased poverty.
This was stated by the Chairman of Transparency International (TI), Dr Peter Eigen, in a message to participants of a workshop on Capacity Building and Training on Procurement Training to be held here on Monday.
He said, "I would like to extend my appreciation on behalf of Transparency International for taking time to participate in what promises to be an important and productive meeting."
The TI recognises the serious need to address corruption in public procurement and contracting.
"We have been working persistently to raise the awareness of governments, companies and civil society world-wide of the importance of preventing and combating corruption in public contracting and to develop tools for this purpose," he added.
Peter Eigen said, the corruption in public contracting leads to a distortion of fair competition, and frequently to the waste of scarce resources which, especially in developing countries, may contribute to the neglect of basic needs and to increased poverty.
Experts estimate that systemic corruption can add 20 to 25 percent to the costs of government procurement and frequently result in inferior quality goods and services and uneconomic investments or unnecessary purchases.
"If corruption in this area is not contained, it will grow," he added.
This workshop comes at a strategic time when implementing the new Public Procurement Rules adopted by the government of Pakistan is vital to this country's economy.
The new Rules are mandatory for all federal procuring agencies in Pakistan. "The inclusion of the Integrity Pact developed by TI is a great cause of satisfaction for me. It represents an example for other countries to follow."
He appreciated the TI Pakistan for taking the lead in organising this workshop to bring together such an esteemed gathering to discuss ways and means to the implementation of the 'procurement rules'.
The TI Pakistan has made tremendous contributions to our movement. The Chapter has produced a number of important surveys and studies on corruption and has been excellent in networking with NGOs to form a coalition against corruption.
The landmark projects of the Chapter on procurement procedures for Karachi Water & Sewerage Board (KW&SB) and City District Government of Karachi, for Pakistan Steel and for Pakistan International Airlines have been a remarkable achievement as has the chapters work in developing the integrity pact in public procurement procedures and the integrity pact on the implementation or the OECD convention on combating corruption in Pakistan.