The Integrity Pact (IP) is a tool developed during the 1990s by Transparency International to help governments, businesses and civil society intent on fighting corruption in the field of public contracting.
The IP consists of a process that includes an agreement between a government or government department and all bidders for a public sector contract. It sets out rights and obligations to the effect that neither side will pay, offer, demand or accept bribes, or collude with competitors to obtain the contract, or while carrying it out. In addition, bidders are required to disclose all commissions and similar expenses paid by them to anybody in connection with the contract.
If violations occur then sanctions will apply. These sanctions range from loss or denial of contract, forfeiture of the bid or performance bond and liability for damages, to blacklisting for future contracts on the side of the bidders, and criminal or disciplinary action against employees of the government.
Companies and governments alike stand to benefit from IPs. Companies can refrain from bribing in the knowledge that their competitors are bound by the same rules, while governments can reduce the high cost of corruption on procurement, privatisation and licensing.
The IP has shown itself to be adaptable to many legal settings and flexible in its application. Since its conception, the IP has been used in more than 15 countries worldwide and has benefited from feedback from a variety of individuals and organisations.
Read more about the Integrity Pact