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PSPD    People's Solidarity for Participatory Democracy

  • Civil-Political
  • 2001.10.10
  • 2123
  • 첨부 1

The Integrity Pact


I. The Integrity Pact
1) Goal


The Integrity Pact is a system to prevent corruption in public contracts. In the process of projects ordered by the administration, such as bids, contracts, and implementation, both the administration and companies pledge that they will not bribe or take bribes, and that they would accept punishment if they break it.

South Korea is the only nation which takes the integrity pact that Transparency International (TI) encourages. The PSPD runs a unique integrity pact, even though it is not in TI. An ombudsman recommended by an NGO monitors whole process of a well-budgeted project.

Now the integrity pact is applied to all public construction ordered by Seoul city and other local autonomies. Especially on Seoul City's construction projects over 5 billion Won, design or supervision over 1 billion Won, and purchase projects over 0.2 billion Won, the ombudsman picks the most crucial companies and concentrates on them.

2) Contents

When notice of an offer is announced, giving information about the integrity pact to companies.

When companies register, the administration and companies exchange an oath for Integrity Pact Operation.

The right of bidding application is designated only to companies which submit the Oath for Integrity Pact Operation.

* Contents of the Oath for Integrity Pact Operation: Do not prearrange bidding or bribe officials with money or feasts or give unfair profits. When a company breaches the integrity pact, the company would be banned from bidding applications or lose a contract. Protect inside complainants who provide information of corruption from any damage Try to send the moral code to each company. The oath for Integrity Pact Operation is a special condition of any contract. The ombudsman has an evaluation workshop on every step of offers, contracts, and implementations. The ombudsman, recommended by an NGO and appointed by the Mayor, monitors and evaluates.

* Roles of the ombudsman Required to offer documents related to a project Required to correct unfair or inappropriate things and to supervise. Responsible for the 3 Step evaluation workshop


3) Limitation

Limitation to application for Seoul City offers. Offer price manipulating or prearrangement for a certain company. # 2 years' limitation for a person who leads the prearrangement and 1 year for a person involved. 6 months to 2 years for those who bribe officials in the process of offers, contracts, and implementation. # 2 years for those who make deals by prearrangement or who do not fulfill a contract # 1 year for those who bribe officials to modify offers and contract conditions for their own benefits, or not to fulfill a contract # 6 months for those related to unfairness of offers, contracts, and implementation

Cancellation of a contract When a company bribes officials in the process of bid, contract and implementation, the company might lose the contract completely or partially.

Complaint to the Fair Trade Commission When unfair trades such as prearranged bidding are disclosed, the parties concerned would be complained about to the Fair Trade Commission and have forfeiture

4) Flow Chart of Integrity Pact



II. Ombudsmen

1) Taekwon Ha (taekwon@plaza1.snut.ac.kr) Graduated from Seoul National University and the Graduate School of the University of Georgia (Ph.D. Public Administration) Professor, Public Administration Department, Seoul National University of Technology, Director, Policy Project of Transparent Society, PSPD

2) Woobong Ki (woobong@hanmail.net) Graduated from Seoul National University Ex-vice president of Korea Heavy Industries and Construction Member, Executive Board of PSPD General Director, Civil Lobbyists of PSPD

3) Soontae Kim Graduated from Seoul National University Ex-assistant director, Second Division in The Board of Audit and Inspection of Korea Ex-auditor, Korea Trade Investment Promotion Agency (KOTRA) Ombudsman of Seoul City

4) Ganghen Lee Graduated from Yonsei University and the Graduate School of UC Berkeley Professor, Graduate School of Architecture in Kyunggi University

5) Hochan Hwang (hwanghc@sejong.ac.kr) Graduated from Yonsei University and the Graduate School of Georgia Institute of Technology (MBA) CPA in Korea and US Professor, Business Administration College in Sejong University Director, Administration Division of CEMK Director, Institute of Christian Business

III. Whistleblower

Please give us information if you know of any corruption in Seoul City's construction projects; bribes, prearrangements, illegal subcontracts, and unfaithful construction This site is run by PSPD independently of Seoul City, so we do not disclose a complainant's personal information and complaints without the complainant's agreement  You can provide the same information on the Integrity Pact web site of Seoul City as well.

IV. Suggestions - Please give us your ideas about improving the way of operating the Integrity Pact.

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