Procurement Risk:
Critical
Score:
11/100
Government Policy
Q57
NEI/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. The country has a public procurement law that might cover defence and national security…
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The country has public procurement legislation which refers to corruption risks, and it might cover defence and security procurement (see the answer to question…
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This indicator has not been assigned a score due to insufficient information or evidence. The Public Procurement Law mentions some exemptions. It is unclear…
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Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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No evidence could be found that there is a formal defence procurement cycle. Some policies and formal procedures could be found in the Public…
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There is no evidence that the entire defence procurement cycle is disclosed. The only document that might apply to defence procurements is the 2016…
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No evidence could be found that there is a formal defence procurement cycle. Some policies and formal procedures could be found in the Public…
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Q59
8/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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There are formal control mechanisms, but legislation is sometimes vague and exemptions are made for the armed forces, which allow them to influence oversights.…
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No information could be found on whether the formalised procurement oversight mechanisms are active in the 2016 Public Procurement Law (1). No information could…
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No evidence was found that procurement oversight mechanisms in the defence sector are made publicly available. The 2016 Public Procurement Law does not require…
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No information could be found on planning for potential purchases. There is also no evidence that a strategic defence review or a white paper…
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No information could be found on forward purchase plans of the Ministry of Defence, either on their website or their monthly magazine (1), (2).…
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Generally, as has been outlined in previous questions, matters related to defence are classified as secret. There are reports about some defence purchases in…
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No information on purchased items was found on the website of the Ministry of Defence (1). Occasionally, the army reported about acquisitions in the…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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According to a US State Department report, private companies are generally not required to have internal codes of conduct concerning the bribery of public…
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This sub-indicator has been marked Not Applicable because there is evidence that private companies are generally not required to have internal codes of conduct…
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Q63
0/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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No evidence was found that there is a published national and defence strategy; additionally, see the country’s last assessment (3). There is no strategy…
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As has been outlined in detail in question 59, there is only limited oversight of defence procurements, if any at all. According to Art.…
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Since no national strategy has been found (see question 63A), it is impossible to assess whether purchases are inside or outside of it. Therefore,…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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In principle, public procurement is conducted as an open competition. According to Art. 5 of the 2016 Public Procurement Law, public procurement must comply…
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Oversight agencies do not have powers to question single or restricted competition procedures. Chapter 5 of the Public Procurement Law that regulates control of…
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Q65
17/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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The Public Procurement Law stipulates some regulations with regards to tender boards. According to Art. 165 of the Public Procurement Law, a tender board…
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News articles suggest that it is very difficult for the oversight agency, the Court of Auditors, to access a comprehensive audit trail. The Ministry…
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This indicator has not been assigned a score due to insufficient information or evidence. Chapter 3, of the 2016 Public Procurement Law formally provides…
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News articles suggest that it is very difficult for the oversight agency, the Court of Auditors, to access a comprehensive audit trail. The Ministry…
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Q66
50/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Art. 49 of the Anti-Corruption Law mentions collusion with regards to exemption and mitigation of sentences. Art. 49 says that a person who has…
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Art. 33 of the Anti-Corruption Law mentions sanctions against individual public officials. It says that any public servant who intentionally abuses his/her office or…
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This sub-indicator has been marked Not Applicable because research has found no public cases of collusion in the defence sector during the last few…
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Reportedly, training conducted by the ONPLC included the legal and institutional framework for the fight against corruption, transparency of public life, the code of…
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Contract Delivery and In-Service Support
Q67
0/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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No formal policies or procedures that outline how to monitor, assess and report upon a supplier’s service or delivery obligations could be found during…
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No formal policies or procedures that outline how to monitor, assess and report upon a supplier’s service or delivery obligations could be found during…
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No formal policies or procedures that outline how to monitor, assess and report upon a supplier’s service or delivery obligations could be found during…
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There no evidence that breaches of contract are acted upon (1), (2)
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Q68
50/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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There is a formal complaint mechanism in place. According to Art. 946 of the Code of Civil and Administrative Procedure, the Administrative Court can…
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The World Bank’s Benchmarking Public Procurement Report of 2017 provides information on the effectiveness of complaints. According to the World Bank, whether a complaint…
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No cases could be found during the research which would allow assessment of this question. Due to the high politicisation of the Algerian court…
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There are clear legislation and implementation guidelines, which allow for termination of the contract where there is a conviction or credible evidence of bribery…
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Research has found no public cases of corrupt activities of a supplier working for the defence sector during the last few years. Allegations of…
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There are cases where businessmen have been prosecuted and jailed for corruption, but no cases have been found where businessmen were doing businesses with…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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Reports published prior to 2016 stated that Algeria did not have a specific offset policy (1 and 2). A review of laws and regulations…
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Algeria has signed agreements with foreign companies in the last years, mainly prior to 2016, to develop a military-related manufacturing in Algeria. In 2016,…
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As answered in question 70, no evidence was found that the country has specific regulations for offset contracts. Reports published before 2016 stated that…
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As answered in question 70, no evidence was found that the country has specific regulations for offset contracts. Reports published before 2016 stated that…
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As answered in question 70, no evidence was found that the country has specific regulations for offset contracts. Reports published before 2016 stated that…
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As answered in question 70, no evidence was found that the country has specific regulations for offset contracts. Reports published before 2016 stated that…
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As has been answered in previous questions, no information specific to offset contracts could be found. Art. 9 of the 2006 Anti-Corruption Law states…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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The 2016 Public Procurement Law does not provide for any regulations or restrictions of intermediaries or agents in the procurement cycle (1). The country’s…
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This sub-indicator has been marked Not Applicable because there is no evidence that the government controls the company’s use of agents and intermediaries in…
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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The 2016 Public Procurement Law requires the publishing of aspects of the financing package. According to Art. 65, the call for tenders, specifying the…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. There are some indications that political influence from sellers nations have influenced acquisition decisions,…
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This indicator is not assigned a score in the GDI. The Algerian military occasionally justifies acquisitions by referring to the general need of the…
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This indicator is not assigned a score in the GDI. No evidence could be found that there is domestic pressure on the military concerning…
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