By Sri Lanka Lags Behind in Combating Corruption Through Blacklisting, Report Finds
A new report by Verité Research exposes Sri Lanka’s concerning shortcomings in blacklisting corrupt contractors involved in public procurement, marking it the worst performer among South Asian nations.
Key Findings:Non-recognition of Corrupt Practices: Sri Lanka uniquely fails to acknowledge engaging in corrupt activities during procurement as a valid reason for blacklisting companies.
Defaulting Contractors Go Unpunished: Despite existing regulations, the country hasn’t blacklisted contractors who breach contractual obligations, leaving a public online database meant for such entries completely empty. This contrasts starkly with neighboring countries like Nepal and Bangladesh, which actively maintain such databases.
Root Causes:
Outdated Procurement Guidelines: Gaps in the 2006 procurement guidelines, governing most public procurement except specific areas like pharmaceuticals, contribute to the issue.
Lack of Implementation: Existing regulations against defaulting contractors haven’t been enforced, highlighting compliance issues.
Impact and Recommendations:
Corruption Concerns: High levels of corruption in procurement are highlighted by this report, echoing concerns raised in civil society assessments and even the IMF’s governance diagnostic on Sri Lanka.
Urgent Reforms Needed: The report emphasizes the crucial need for immediate steps to address these gaps and strengthen the fight against corruption. Strengthening procurement guidelines and ensuring their effective implementation are essential.
Enacting New Law: The IMF recommends enacting a new public procurement law by December 2024, aligning with international best practices.
Report Access:
worst performer among South Asian nations.The full report titled “Backwards in Blacklisting: Gaps in Sri Lanka’s Procurement Framework Enable Corruption” is available on the Verité Research website: https://www.veriteresearch.org/publication/sri-lanka-procurement-corruptiongaps/
By addressing these critical issues, Sri Lanka can take significant strides towards fostering transparency, accountability, and integrity in its public procurement processes.
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