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Citizens’ monitoring of procurement contract implementation: lessons from the Philippines

Dondon ParafinaANSA-EAP Network Coordinator

Ateneo School of Government

31 May 2011 ▪ Kampala, Uganda

SAc = (CE + CM)a

CE = D + PS

CM = dG + dU

What is social accountability?

Government openness

Organized citizen groups

Access to information

Cultural appropriatenes

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Enabling environment[ANSA-EAP]

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Legal Provision on citizens’ monitoring of procurementSEC 13. Observers. – To enhance the transparency of the

process, the BAC shall, in all stages of the procurement process, invite, in addition to the representative of the Commission on Audit, at least (2) observers to sit in its proceedings, one (1) from a duly recognized private group in a sector or discipline relevant to the procurement at hand, and the other from a non-government organization: Provided, however, That observers should be duly registered with the Securities and Exchange Commission and should meet the criteria for observers as set forth in the IRR.

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Limitations “Procurement process” in Section 13 appears

to refer only to “bidding process” No mention of third-party observers in

Section 42, IRR Section 42, Annex “D” Role of third-party observers in contract

implementation is only recognized in principle, but the principles of the law are not self-executory (Tañada vs. Angara, 272 SCRA 18, 197)

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Need to Transcend Legal Limitation

“Clean” bidding does not ensure good performance during implementation

Citizens have a natural stake in the delivery of public goods and services

Government has limited capacity and resources to monitor implementation

Alternative third-party information validates project assessments

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What to monitor in contract implementation?

NTP ProductionRandom

Inspection/ Testing

AcceptanceRandom

Counting/ Inspection

Processing of Documents

Processing of Payment Payment Distribution to

beneficiaries

Delivery

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Relevant provisions Fixed price; no price escalation

without permission Warranty Liquidated damages Grounds for contract termination Blacklisting

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Red Flags (adapted from Gottbreht)

Expediting payments Paying someone to speed up normal work or process

False error delays Creating delays by creating immaterial errors to extract bribe or illegal payment

Falsification of receipts Providing official receipts that are actually above or below the real price

Falsifying results Paying someone or getting paid to falsify reports to aid corruption activity

Feigned indecision Faking indecision in order to encourage illegal off-the-books payment to decision maker

Forced substitutions Forcing substitution higher cost items in contract with inferior, lower-cost items

Kickbacks Returning a portion of invoiced and paid bill without taxation and records

Pay to play Forcing everyday people to pay authorities to be allowed in their transactions

Unofficial signing rights Unnecessary signatory added in the approval process to extract bribe or illegal payment

Photo by CCAGG

CCAGG Road Monitoring

SAMPLE INITIATIVES

Ateneo School of Government

Bayanihang Eskwela

Photo by Government Watch

Community engages DepED and DPWH inschool building construction monitoring and inspection

Bantay Eskwela

Photo by Procurement Watch, Inc.

Community helps check quantity and quality of school furniture

Ateneo School of Government

Textbook Count

Photos by Government Watch, Coca-Cola

CSOs help check bidding production delivery distribution

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Help our students get their books on time. To volunteer as a textbook delivery watcher in your school, call the following numbers…

2003 Ad 2004 Ad

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NEW DELIVERY SYSTEM

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If IAR is signed by CSO, DepEd Division Office need not inspect deliveries in the districts and high school

DepED saves in monitoring and inspection expense

Supplier can process payment faster

For 3rd party CSO monitor

Citizen volunteer signs IAR

Lessons Legal basis Government agency’s support Dissemination of information Innovation in coalition building and volunteer

mobilization Simplicity of tools Capacity building for citizens Clarity of mission and expected result