When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
70a. Legal framework
Algeria score: 0/100
There is no law or policy that regulates offset contracts.
Offset contracts are permitted and regulated by legislation.
The government prohibits offset contracts by law.
Reports published prior to 2016 stated that Algeria did not have a specific offset policy (1 and 2). A review of laws and regulations published in the official gazette showed no evidence that Algeria has passed a policy during the last years (3). Also the Law of Public Procurement of 2016 does not specify any offset policy for the defence and security sector (4).
The last country assessment mentioned a report that noted that the anti-corruption law of 2006 calls for an estimation of expenditures in offsets agreement (7). However, it is unclear to which article in the law the author referred to. No specific information on offset contracts was found in the anti-corruption law (5).
1) “IHS Jane’s Navigating the Emerging Markets: Algeria”, Jane’s Industry Quarterly 2014. Accessed November 26, 2018. https://www.janes.com/images/assets/675/36675/Emerging_Markets_Algeria.pdf..
2) “Defence & Security Opportunities Algeria”, UK Trade and Investment, 2013. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/282781/UKTI_DSO_Market_Brief_Algeria.pdf.
3) Official Gazette, joradp.dz. Accessed November 25, 2018. https://www.joradp.dz/HFR/Index.htm.
4) “Public Procurement and Public Service Delegation Codes”, President of the Republic of Algeria, March 2016. Accessed November 21, 2018. https://www.joradp.dz/TRV/FMPublic.pdf.
5) “Algeria”, Country Assessment of the Government Defence Anti-Corruption Index 2015. Accessed March 22, 2019. http://government.defenceindex.org/generate-report.php?country_id=6251.
6) Law No. 06-01 (February 20, 2006), “Relative à la prevention et à la lutte contre la corruption”. Accessed October 15, 2018.
7) “Algeria: Helicopter Manufacturing in Setif – Signing of MOU Between Defence Ministry, Italian Leonardo-Finmeccania,” allafrica.com/, August 11, 2016. Accessed November 28, 2018. https://allafrica.com/stories/201608120861.html.
70b. Due diligence
Algeria score: 0/100
The government imposes no anti-corruption due diligence or auditing requirements on offset contracts.
The government imposes some anti-corruption due diligence on contractors and third parties during offset contract negotiations, but they may be superficial in nature.
The government imposes stringent anti-corruption due diligence on contractors and third parties during offset contract negotiations
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, Algeria signed an agreement with the Italian defence and aeronautic form to build a helicopter factors in Algeria (6). But no information on the contract could be found. As such, there is no evidence that the government imposes anti-corruption due diligence or auditing requirements on offset contracts.
Compare scores by country
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|Country||70a. Legal framework||70b. Due diligence|
|Algeria||0 / 100||0 / 100|
|Angola||50 / 100||0 / 100|
|Burkina Faso||0 / 100||0 / 100|
|Cameroon||0 / 100||0 / 100|
|Cote d'Ivoire||0 / 100||0 / 100|
|Egypt||50 / 100||0 / 100|
|Ghana||0 / 100||0 / 100|
|Iraq||0 / 100||0 / 100|
|Jordan||50 / 100||0 / 100|
|Kuwait||50 / 100||0 / 100|
|Lebanon||0 / 100||0 / 100|
|Mali||0 / 100||0 / 100|
|Morocco||0 / 100||50 / 100|
|Niger||0 / 100||0 / 100|
|Nigeria||0 / 100||0 / 100|
|Oman||25 / 100||0 / 100|
|Palestine||0 / 100||0 / 100|
|Qatar||0 / 100||0 / 100|
|Saudi Arabia||0 / 100||0 / 100|
|Tunisia||0 / 100||0 / 100|
|United Arab Emirates||0 / 100||0 / 100|