ICAC launches guidelines for clean government direct purchases

2002-10-7

The Independent Commission Against Corruption (ICAC) has launched a set of corruption prevention guidelines for over 60 government departments to follow in making direct purchases worth up to $1.3 million.

To heighten civil servants' awareness of common corruption loopholes in direct purchases, the Commission's Corruption Prevention Department (CPD) held two forums to promulgate the "Best Practices Package (BPP) on Government Direct Purchases" to supplement existing government procedures.

The forums held last Friday and today were attended by about 140 managerial staff from more than 60 government departments responsible for direct purchases of goods or services.

Addressing the forums, Mrs Jean Au Yeung Lui Miu-kwan, Assistant Director of CPD, said basic control measures must be developed to reduce the risks of corruption and malpractice in government direct purchases.

Through promulgating the BPP, CPD aims to assist officers responsible for direct purchases in identifying these risks and building adequate safeguards in their procurement procedures, she said.

Among the control measures were a fair, open and effective procurement system with sufficient checks and balances, as well as regular review of the procurement system to improve its cost effectiveness and control, Mrs Au Yeung said.

At the forums, Mr Carmel Chow Jun-lung, Group Head of CPD, briefed participants on the relevant provisions of the Prevention of Bribery Ordinance.

To illustrate how government procurement and control weakness could be exploited for corrupt gains, Mr Chow cited a number of ICAC cases which involved offences such as corruption and "misconduct in public office".

Noting that the forums provided an opportunity for experience sharing, Mr Chan Shu-bun, Controller of Government Supplies (Procurement) of Government Supplies Department, urged participants to apply the control measures contained in the BPP to tackle the problems identified.

Under the BPP, government officers concerned are required to strictly observe the government's code of conduct in handling conflict of interest in making direct purchases.

To prevent manipulation and allegations of favoritism, departments should ensure that the maintenance of their lists of suppliers or contractors be handled by staff independent of users and authorizing officers.

As regards general control on invitation for quotations, the BPP suggests departments to specify the minimum number of quotations required for goods or service of different values and to ensure the security of bids sent in by fax.

The BPP also advises that upon accepting a quotation, a department should notify unsuccessful bidders of the outcome.
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