Every year, governments around the world spend huge amount of money through public contracts, on everything from office stationery to providing basic services such as health care and education facilities, and infrastructure. However, the concentration of money, government discretion, and corporate influence in providing people’s needs makes public contracting prone to corruption – and the impacts of this corruption can be particularly devastating. In Indonesia, people could not even get their electronic identity card due to corruption.
The Indonesian Corruption Eradication Commission (KPK) stated that Indonesia lost approximately IDR 2.3 trillion to corruption in electronic residence identity card project. The Commission has arrested several people including Setya Novanto, the former Chairman of Indonesia’s House of Representatives.
Corruption, collusion, and nepotism in public procurement would also affect the private sector. It would create an unfair competition among companies and prevented them from winning a government contract.
In response to the potential impact of corruption in public contracts, particularly in procurement sector, Hivos together with its partners Transparency International, Open Contracting Partnership, Article 19, and CoST – the Infrastructure Transparency Initiative launched the Clean Contracting Manifesto.
In the manifesto, Hivos and partners emphasize that the whole lifecycle of public procurement must be implemented to the highest possible standards of transparency, accountability and efficiency and in the public interest. We also encourage governments and international organizations to adopt the manifesto.
Download and read the Clean Contracting Manifesto below.