What is an 'integrity pact'?

The Integrity Pact (IP) is a tool developed by Transparency International (TI) aimed at preventing corruption in public contracting. It consists of a process that includes an agreement between a government or a government department and all bidders for a public contract. It contains rights and obligations to the effect that neither side will pay, offer and demand or accept bribes; collude with competitors to obtain the contract; or engage in such abuses while carrying out the contract. The IP is a written agreement between the government/government department and all bidders to refrain from bribery and collusion. Bidders are required to disclose all commissions and similar expenses paid by them to anyone in connection with the contract. If the written agreement is violated then the pact describes the sanctions that shall apply. These may include: Loss or denial of contract; Forfeiture of the bid or performance bond and liability for damages; Exclusion from bidding on future contracts (debarment); and Criminal or disciplinary action against employees of the government. It is a monitoring system that provides for independent oversight and increased government accountability of the public contracting process.