Trillions of dollars flow through global tendering. With such massive budgets and the inherent complexity of managing these, corruption will inevitably enter the equation, and the mismanagement of funds results in costly premiums.
Back in 2013, the World Trade Organization (WTO) stated that global procurement was experiencing an estimated 25% of cost inflation due to corruption alone, which is why governments around the world are adopting robust frameworks to ensure that contractors can ethically and successfully compete in tendering.
In this article, we take a closer look at the issue of corruption in tendering and some integrity benchmarks you need to be aware of.
The problem of corruption in public procurement
Unfortunately, public procurement is highly susceptible to corruption practices ranging from price fixing to cartel operations, which typically result in an unfair playing field for businesses, and cost inflation is far from being the only problem this causes. It often also leads to the delivery of goods and services of inferior quality, which leads to the additional expense of repairing and/or addressing these issues.
It’s also important to highlight that corruption can occur at pretty much any stage of the procurement process, from assessment to implementation, payment, and beyond,d and this makes it particularly complicated to address.
The traditional approaches that aim to combat these problems focus solely on creating more rules and stricter compliance, but this has proven to have limited effectiveness.
Fortunately, modern anti-corruption frameworks appear to be able to better infiltrate comprehensive strategies within the entire procurement lifecycle.
Digital transformation has had a massive impact in ensuring a fairer environment for contractors, and e-tendering has seen a high level of adoption across OECD countries.
The EU's mandatory shift to electronic tendering in October 2018, which requires all communication within public procurement processes to be fully electronic, slashed paperwork and has made huge progress in eradicating backroom deals. The way we see it, this demonstrates a clear global direction.
International frameworks and standards
The global fight against corruption within procurement is not being waged with vague promises, it is being powered by concrete frameworks with real teeth.
From the UN Convention Against Corruption (UNCAC) to the WTO's Government Procurement Agreement, international bodies have developed increasingly sophisticated tools to tackle the estimated US$2 trillion lost annually to corruption.
United Nations initiatives
UNCAC establishes in Article 9(1) that states must "take the necessary steps to establish appropriate systems of procurement, based on transparency, competition and objective criteria in decision-making, that are effective, inter alia, in preventing corruption".
This includes the requirement for the public distribution of procurement information, the advance establishment of participation conditions, and effective domestic review systems.
The Model Law on Public Procurement established by the UN Commission on International Trade Law (UNCITRAL) provides a comprehensive template for countries to develop procurement legislation. It contains procedures and principles to achieve value for money and avoid procurement abuse.
The Model Law recognizes that a well-functioning procurement system requires more than just regulations, it requires institutional, administrative, and legal infrastructures to ensure effective implementation.
World Trade Organization's Government Procurement Agreement
The WTO's revised Agreement on Government Procurement (GPA) is a significant step forward in the promotion of integrity in international procurement. The revised GPA "recognizes the importance of avoiding conflicts of interest and corrupt practices" and includes a specific requirement for participating governments to prevent corruption.
The revised GPA expands access to market opportunities, with annual gains estimated to be US$80-100 billion. Beyond market access, the agreement establishes the core principles of non-discrimination, transparency, and procedural fairness, while streamlining the text to make it easier to understand and implement.
Regional frameworks
The EU's directives on public procurement emphasize "transparency, equal treatment, open competition, and sound procedural management". The 2014 directives simplify procedures, make them more flexible, and promote digitalization to enhance efficiency.
The African Union Convention on Preventing and Combatting Corruption, in force since 2006, widely addresses corruption, including procurement-related issues such as solicitation or the acceptance of benefits in exchange for activities within public functions.
The convention established the AU Advisory Board Against Corruption to oversee implementation.
G20 principles for promoting integrity
The G20 has developed principles that specifically address procurement integrity. These include promoting the fair and equitable treatment of suppliers, the transparency of opportunities and awards, the use of competitive procedures, the implementation of e-procurement solutions, the establishment of complaint mechanisms, the maintenance of clear laws and regulations, and the fostering of a culture of integrity among both officials and suppliers.
What is the G20?
The G20, which unites the world's largest 20 developed and emerging economies, is a primary platform for global economic collaboration, addressing the world's most pressing economic issues and advancing equitable, balanced, and sustainable growth.
Core principles for transparent and ethical procurement
Let’s take a moment to draw some clear definitions for the standards within ethical procurement.
Transparency
Transparency is at the heart of any serious anti-corruption effort in procurement. It’s far more than just a buzzword – it's about exposing the entire process from planning to final payment.
As Transparency International puts it, we're talking about "the public distribution of information relating to procurement procedures and contracts, including information on invitations to tender and relevant or pertinent information on the award of contracts." In plain English, everyone should be able to see who is bidding, what they are offering, and why contracts are awarded.
Competition and fairness
When procurement processes are genuinely competitive, taxpayers get better value and corruption finds fewer footholds. Fair treatment means all suppliers get an equal shot, with the selection criteria published upfront and the reasoning behind contract awards made crystal clear.
Without competitive tendering procedures as standard practice (with only very limited exceptions), backdoor deals flourish and public money evaporates. The evidence shows that genuine competition delivers better outcomes for everyone, except those hoping to game the system.
Integrity and accountability
Integrity in procurement isn't abstract – it means concrete behavior that blocks corruption's path. It's significant that the World Bank's 2016 procurement reforms placed integrity among its seven core principles alongside efficiency, economy, fairness, transparency, fit-for-purpose, and value for money.
Accountability gives integrity teeth. It establishes clear chains of responsibility and real consequences when standards slip. Without robust internal controls, independent auditing bodies, and publicly accessible reports, even the best procurement rules will simply remain paper tigers.
Value for money and efficiency
The cheapest bid rarely represents the best value. Smart procurement considers quality, sustainability, and lifecycle costs, not the headline figure alone.
The World Bank puts this principle at the center of its approach, demanding "sound decisions that assess risks and applying procurement principles concurrently to support project development objectives." This means asking tough questions about the long-term costs, not simply celebrating short-term savings.
Efficiency matters too. Streamlined processes, electronic tracking systems, and focusing staff time on substantive review rather than endless paperwork are practical steps that can transform procurement from a bureaucratic nightmare to an effective public service.
As public scrutiny intensifies and budgets tighten, these principles aren't only good practice, they are essential survival skills for procurement professionals navigating increasingly complex global markets.
Implementation strategies and best practices
Theory means nothing without execution. As procurement authorities worldwide tighten anti-corruption measures, the gap between policy and practice remains the system's biggest vulnerability.
Risk management
Modern procurement has transitioned from the one-size-fits-all procurement process. Innovative organizations are now taking a more surgical approach to risk.
The World Bank's procurement overhaul shows exactly this shift with "an enhanced procurement risk assessment process" that evaluates threats at both project and activity levels. It's simple math: focus your limited oversight resources on the contracts that are most likely to go wrong.
Professionalizing procurement
The procurement profession has evolved dramatically, yet too many organizations still treat it as an administrative afterthought. This needs to change.
The G20 principles get it right by pushing for "high standards of integrity and ethics" among procurement officials and access to practical tools they can actually use. The World Bank has similarly prioritized "training in new procurement areas" to sharpen the skills of both its own staff and client countries.
The message is clear: procurement isn't just about processing paperwork. It's a sophisticated profession that requires specialized knowledge, an ethical backbone, and strategic thinking.
A dialogue with the private sector
Anti-corruption efforts fail when they treat businesses merely as potential wrongdoers rather than partners in prevention.
The G20 principles recommend "encouraging supplier efforts to develop internal corporate controls and compliance measures" including competition and anti-corruption programs. This isn't just about big corporations though, small and medium enterprises need practical guidance that is tailored to their limited resources.
Smart governments recognize that most businesses want clean procurement processes. By giving them the tools to participate ethically, authorities can create a market where corruption becomes a competitive disadvantage.
Civil society oversight
Independent oversight remains the most powerful corruption deterrent, and civil society organizations are uniquely positioned to provide this.
The G20 principles specifically call for "opportunities for input from civil society and the general public" and the involvement of stakeholders, including suppliers, users, and civil society, during the pre-tendering stages.
Why does this matter? Because corruption thrives in darkness. When citizen groups and independent experts scrutinize tender documents, attend bid openings, and monitor contract implementation, officials and suppliers behave differently. It's human nature – we perform better when someone's watching.
As procurement systems evolve in our data-driven world, these implementation strategies aren't nice-to-haves, they're essential safeguards to protect billions in public money from the persistent threat of corruption.
The bottom line
Today's procurement frameworks demand integrity throughout the entire cycle, from planning to payment.
The toolkit is robust: e-procurement systems and tender portals such as Tenders Electronic Daily or India’s Government e-Marketplace implement data standards and integrity pacts that all aim to reduce the estimated 10–25% corruption premium often associated with public contracts. Yet the gap between theory and implementation remains substantial.
The UNCAC and UNCITRAL frameworks provide solid foundations but, without political will and institutional muscle, they're merely paper tigers. The World Bank's shift toward risk-based approaches signals where things are heading.
As civil society watchdogs gain access to standardized procurement data, corrupt officials face unprecedented scrutiny. For the trillions spent annually on public contracts, it’s not before time.