PACS Standard 2 forms part of GIACC’s Project Anti-Corruption System (PACS), which comprises 15 PACS Standards (see links at foot of this webpage).
[NOTE: The webpages on PACS Standards 1 to 15 are being updated until 20th October 2021, during which time the page content may not be complete, and there may be inconsistencies on these pages.]
Paragraph 1 of this PACS Standard provides that the general anti-corruption measures in paragraphs 10 (conflict of interest), 11 (decisions), 12 (communication) and 13 (records) of PACS Standard 1 should apply to all Project selection and design processes. This means, for example, that:
Paragraph 2 of this PACS Standard provides that the Project Owner’s managers who manage the Project selection and design processes should be employed in accordance with paragraph 9 (employment procedures) of PACS Standard 1. This means, for example, that:
Corruption may occur in relation to the selection of the Project. Corrupt public officials, managers of the Project Owner, and Suppliers may collude to select a Project which the Project Owner does not need, or which does not provide value for money for the Project Owner, but which will enable the corrupt persons to extract improper personal profit from the Project. For example, a new highway or airport may be unnecessary, but may be corruptly selected by the Project Owner’s managers because it will create work for the corrupt Suppliers, and enable the Suppliers to pay bribes to the Project Owner’s managers.
Therefore, paragraph 3 of PACS Standard 2 provides that the selection of the Project must satisfy the tests of legitimacy, necessity and value for money.
To reduce the risk that the Project Owner’s managers may corruptly make the above decisions, or may be compelled to do so by corrupt public officials, paragraph 3 of PACS Standard 2 requires that a Project with an estimated value over a prescribed threshold should be justified by a written and objective needs assessment, technical assessment and value for money assessment provided by a suitably skilled and independent third party.
The whole or part of the Project may be designed with corrupt intent. For example:
The above situations may occur with no corruption (i.e. the designer of the Project may make a genuine mistake in over-specifying the design or providing an incomplete design, or may genuinely believe that the named Supplier’s equipment is the best). However, the above situations may often occur for corrupt reasons (i.e. the potential Supplier(s) have bribed the managers responsible for the design in order that the design is over-specified or incomplete or wrongly specifies only one named Supplier).
In order to limit the above risk, paragraph 4 of PACS Standard 2 provides that the design of the Project should: be based on the legitimate needs of the Project Owner; be described in terms that are clear, comprehensive, objective, functional and generic; and not be intended to favour any particular Supplier or to artificially narrow competition.
PS 2: Project selection and design
Updated on 18th October 2021