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).
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, design and land acquisition 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.
In some cases, the land which is needed for a public sector Project will already be in public ownership and will merely need to be allocated to the project. However, in other cases, the necessary land may be in private sector ownership, and will therefore need to be acquired by the Project Owner for the Project.
In some cases, there may be a choice of land availability. For example, if land is needed to build an office or facility for the Project Owner, there may be several sites which can be chosen. In other cases, the necessary land will only be available from one source (for example, in the case of a highway where the optimum route of the highway determines the land requirement).
Where land is required from a private sector owner, the owner may voluntarily sell it to the Project Owner. However, in other cases, the owner may not be willing to sell, and the Project Owner may need to utilise compulsory acquisition powers in cases where the land is essential for public development.
There may be corruption in relation to the acquisition of land by the Project Owner from a private sector owner. For example:
The above examples apply to a sale of land. In some cases, it may be more beneficial or necessary for the land to be leased by the Project Owner. The provisions of paragraph 6 apply to leases of land as well as sales of land.
The term “land” applies to land, and any buildings, fixtures and fittings on that land.
Paragraphs 1, 2, 3 and 6 of PACS Standard 2 attempt to reduce these corruption risks by imposing a set of controls in relation to any acquisition of land for the Project by the Project Owner.
PS 2: Project selection, design and land acquisition
Updated on 1st November 2021