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2008 Assessment

Iraq: Integrity Indicators Scorecard

Iraq: Integrity Scorecard Report > Sub-Category: Procurement
Indicators		Score
51	Is the public procurement process effective?	50
52	Can citizens access the public procurement process?	63

Indicator and sub-Indicator Details

Is the public procurement process effective?

51a: In law, there are regulations addressing conflicts of interest for public procurement officials.

Score:

YES

Comments:

References: Law no. 87, created by the Coalition Provisional Authority (CPA), "provides a set of public procurement guidelines and creates an Office of Government Public Contract Policy within the Ministry of Planning and Development Cooperation to oversee the implementation of the guidelines. There is also provision for an independent administrative tribunal to have jurisdiction over complaints and disputes arising under or relating to the award of public contracts. Reform is currently being undertaken in the second phase of the World Bank's Capacity Building program, which targets Public Procurement Reform" ([ LINK ]).

CPA law no 87, however, was not implemented and was not reinforced by the following government.

Peer Review Comments: There is a law issued by Coalition Provisional Authority -- No .87.

51b: In law, there is mandatory professional training for public procurement officials.

Score:

YES

Comments:

References: Conference for General Inspectors in Basra, [ LINK ].

Peer Review Comments: There are many training courses held by the Research Institute. There is a local governance project for Iraqi public procurement officials and for procurement units in Basra, Muthna, Maysan, and the Thi Qar governates.

51c: In practice, the conflicts of interest regulations for public procurement officials are enforced.

Score:

100

Comments: Enforcement of most conflicts of interest regulations in Iraq remains a major challenge.

References: "Iraqi Ex-Minister Sentenced for Graft," [ LINK ] (Thursday, May 31 2007).

51d: In law, there is a mechanism that monitors the assets, incomes and spending habits of public procurement officials.

Score:

YES

Comments:

References: No such mandate exists.

51e: In law, major procurements require competitive bidding.

Score:

YES

Comments:

References: Government Procurement and Auctions Law: All major procurements require competitive bidding.

Interview with Mr. Sahib Ali, member of Iraq Chamber of Commerce, longstanding Iraqi contractor (London, Nov. 12, 2008).

Peer Review Comments: See also CPA order No. 87.

51f: In law, strict formal requirements limit the extent of sole sourcing.

Score:

YES

Comments:

References: Investment Law, Iraqi Council of Representatives (Oct. 8, 2007).

[ LINK ].

51g: In law, unsuccessful bidders can instigate an official review of procurement decisions.

Score:

YES

Comments:

References: There is no such clause in the Investment Law passed by the Iraqi Council of Representatives on October 8, 2007.

[ LINK ].

51h: In law, unsuccessful bidders can challenge procurement decisions in a court of law.

Score:

YES

Comments:

References: There is no such clause in the Investment Law passed by the Iraqi Council of Representatives on October 8, 2007.

[ LINK ].

51i: In law, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

YES

Comments: Despite the existence of a law, the enforcement of it is pretty weak and almost non-existent. According to a report issued by the U.S. embassy in Baghdad "the IG has alleged poorly drafted contracts, lack performance standards and no enforcement."

In addition the ministries concerned usually have what is known as a blacklist for defaulting or corrupt companies.

References: Report, U.S. Embassy.

The Law of Governmental Procurement and Auctions regulates these matters.

Interview with Mr. Sahib Ali , member of Iraq Chamber of Commerce,longstanding Iraqi contractor (London, Nov. 12, 2008).

51j: In practice, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

100

Comments: Texas-based Raman International inc. was convicted of bribery to influence the awarding of US Dept of Defense contracts in 2008. It was prohibited from participating in future procurement/business ventures with the US government for three years. However, according to POGO, this case is just the tip of the iceberg, with several previous and ongoing procurement abuses yet to be investigated and penalized.

References: Tate, Deborah, "Bush Administration Accused of Ignoring Corruption in Iraq," Voice of America, [ LINK ] (May 12, 2008).

[ LINK ]

Peer Review Comments: Iraqi provincial councils are starting to blacklist some companies.

Can citizens access the public procurement process?

52a: In law, citizens can access public procurement regulations.

Score:

YES

Comments: Yes. It is limited to those concerned and qualified, namely members of chamber of commerce or industrial chamber, and contractors listed and certified by the Ministry of Planning.

References: The Law of Governmental Procurement and Auctions.

Peer Review Comments: All citizens can access all the laws that concern public procurement regulations. Iraqi directorates can respond to any question about procurement regulations.

52b: In law, the government is required to publicly announce the results of procurement decisions.

Score:

YES

Comments: The ministries concerned are required to announce the results.

References: Law of Governmental Procurement and Auctions.

52c: In practice, citizens can access public procurement regulations within a reasonable time period.

Score:

100

Comments: Procurement offices within most ministries and public institutions are generally responsive in providing procurement regulations.

References: Al-Shibani, Ahmed Abdu Al-Hamza, "Administrative Corruption is a Breeder of Terrorism," AlNajaf AlAshraf website, [ LINK ].

52d: In practice, citizens can access public procurement regulations at a reasonable cost.

Score:

100

Comments: Regulations are usually posted in newspapers whenever a project is being advertised. Procurement offices within most ministries and public institutions are generally responsive in providing procurement regulations.

References: Regulations are usually posted in newspapers whenever a project is being advertised.

52e: In practice, major public procurements are effectively advertised.

Score:

100

Comments: Major projects are usually advertised although not always very efficiently and on short notice.

References: Al-Shinbani, Ahmed Abdu Al-hamza, Alnajaf Alashraf website, [ LINK ].

52f: In practice, citizens can access the results of major public procurement bids.

Score:

100

Comments:

References: There is no information available. Al-Shinbani, Ahmed Abdu Al-Hamza, Alnajaf Al-ashraf website, [ LINK ].

Peer Review Comments: Not everyone can access the results of major public procurement bids; they can be accessed only by those who are connected with the issue of procurements.