CCC and Transparency

Presentation to TI Symposium

May 12, 2003

2

CCC and Transparency International

• International focus

• Promote transparent international public procurement

– The contracts have been obtained through fair and honest means

– Buyer receives best value for its money

3

Canadian Crown Corporation Established in 1946

• Mandate– To assist in the development of trade between

Canada and other nations

• Mission– Bring buyers and sellers together through contracts

built on the best possible terms and conditions

• Reports to Parliament through the Minister for International Trade

4

Effective Contracting Expertise

2001-2002

5

Canada’s Export Contracting Agency

6

Countries of activities

• 70% of 2001-2002 sales to US Department of Defense– Codified procurement rules – DFARS 203 : Improper business practices and

personal conflict of interest– DODD 7050.5 Coordination of Remedies for

Fraud and Corruption Related to Procurement Activities

– Price certification of bids through CCC done by PWGSC

7

DFARS 203.7000• Government contractors must conduct themselves with the highest degree of integrity and

honesty. Contractors should have standards of conduct and internal control systems that (1) Are suitable to the size of the company and the extent of their

involvement in Government contracting,

(2) Promote such standards

(3) Facilitate timely discovery and disclosure of improper conduct in

connection with Government contracts, and

(4) Ensure corrective measures are promptly instituted and carried

out.

8

DODD 7050.5

• Debarment of contractor and contractor employees

• Suspension of contractor and contractor employees

• Removal of contractor from automated solicitation or payment system.

• Termination of contract• exemplary damages• withholding of payments to contractor• price reduction

9

Bahamas

Austria

Norway

Gabon

China

India

Italy

Brazil

Panama

United StatesIran

Zambia

Romania

Trinidad and Tobago

Chile

Russian Federation

Hong Kong

JapanPortugal

Denmark

Bermuda

Argentina

Puerto Rico

Germany

Israel

Australia

United Kingdom

Cuba

LuxembourgNetherlandsIreland

SingaporeColombia

United Nations

Contracting Activity in 2001-2002in 34 countries

10

Countries of activies

• > 94% of total sales take places in top 25 less corrupt countries on 2002 TI Corruption perception index.

11

CCC’s Contracts

No Corruption clause in all CCC’s Service Agreements and Domestic contracts

• Article 12 - Corruption

– 12.1 The Supplier warrants that no bribe, gift or other inducement has been paid, promised or offered to any official or employee of CCC or Her Majesty in right of Canada for, or with a view to, the entering into this Domestic Contract.

– 12.2 The Supplier warrants that it has not contravened and will not contravene the Corruption of Foreign Public Officials Act (S.C. 1998, c. 34) in relation to the Prime Contract.

12

Procurement agent

• Foreign government buyers are already using CCC’s services to fight corruption amongst their employees– Transparent procurement process

13

Price Certification

• Occasionally, CCC is being asked to certify that the price is fair and reasonable– Certification conducted by PWGSC

under CCC’s auspice– Unusual amounts would raise red flags– Pay close attention to Agent fees

14

Future ….

• Work closely with Transparency International

• Increase efforts to raise awareness of CFPOA amongst CCC’s clients and buyers

• Training sessions to CCC employees

15

www.ccc.ca1100-50 O’Connor

Ottawa, Ontario

Canada, K1A 0S6

(613) 996-0034

1-800-748-8191 (toll free in Canada)