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?
62a. Formal policies
Iraq score: 0/100
There are no laws or procedures detailing how the government discriminates in its selection of suppliers and sub-contractors, and suppliers or sub-contractors are not required to sign anti-corruption clauses in contracts with the government.
There are no laws or procedures detailing how the government discriminates in its selection of suppliers and sub-contractors, but periodically suppliers or sub-contractors may be required to sign anti-corruption clauses in contracts with the government.
There may be laws and procedures detailing how the government discrminates in its selection of suppliers and sub-contractors. Some anti-corruption standards are included in the main contract or subcontracts throughout the supply chain.
There are laws and procedures detailing how the government discriminates in its selection of suppliers and sub-contractors on the basis of their integrity. Companies may be required to show that they have a formal and publicly declared anti-corruption programme in place, but some minimum standards are not specified. These standards are included in the main contract as well as subcontracts throughout the supply chain.
There are laws and procedures detailing how the government discriminates in its selection of suppliers and sub-contractors on the basis of their integrity. For example, suppliers and sub-contractors are required to show that they have a formal and publicly declared anti-corruption programme in place that adheres to minimum standards established and specified by the procurement authority. The substance of the programme and standards are included in the main contract as well as subcontracts throughout the supply chain.
While various state ministries have published specific public contract guides, ministry of defence contracts are only briefly mentioned in ‘A Guide to the Implementation of Government Contracts in Iraq’ (1). The guide identifies Tender Committees attached to each ministry as state-sanctioned bodies licensed to approve contracts, managing their own procurement needs following ‘Article 6 of Instruction No. 1/2008. In cases where contracts exceed IQD 50 million, special committees are formed who, alongside the contracting body, deliberate on which part to award the contract to. There is no explanation of the qualifications bidding firms are required to have or the legal basis on which contracts are granted. Bidder registration, as one legal source notes (2), is not required which implies relative openness for bidding firms. The general absence of facts as one interviewee told TI was down to a general policy of non-disclosure under which Iraq’s security and defence institutions operate (3). Decentralised procurement, one source breaks down (4) works in a manner in which contracting methods, tender documents and requirements are different under every ministry which results in procedural inconsistencies and contracts being reissued to bidders in spite of their poor track in delivering (4). The absence of centralised procurement mechanisms exposes, the source further explains, exposes a system bias in which contractors aligned to official employees inside institutions of the Iraqi state gain preference at times having access to “details of tenders”. As of present, there are no mechanisms to scrutinize the qualifications of suppliers as far as defence contracts are concerned, as the score chosen reflects.
1. “A Guide for The Implementation of Government Contracts: Part IV,” Ministry of Planning, 2014, https://bit.ly/2oMVgEw.
2. “Doing Business in Iraq: Overview,” Al Tamimi & Co; Practical Law Thomson Reuters, April 1, 2018.
3. Interview with a former employee at Federal Board of Supreme Audit, London, August 2, 2018.
4. Mahdi Al Ajwad and Leslie Carr, “An Open Public E-Procurement Solution to Tackle Corruption in Iraq,” Conference Paper: International Conference for Students on Applied Engineering 2016, January 2017.
62b. Consistent implementation
Iraq score: 0/100
There is evidence that these policies and laws are not implemented.
There is evidence that these policies and laws are rarely implemented.
There is evidence that these policies and laws are sometimes implemented.
There is evidence that these policies and laws are consistently implemented, but not always i.e. for strategically important suppliers.
There is evidence that these policies and laws are consistently implemented, including for strategically important suppliers.
Without the existence of a broader procurement strategy, it cannot be said that Iraq’s MoD and armed forces conduct compliance programmes in which contracting risks and foreseeable challenges are identified. Accessible legal guides relevant to conducting business with Iraqi ministries appear void of principles governing the behaviour of defence vendors/contractors. The absence of procedures and standards is further reflected by the scale of corruption over the past 5 years, involving bribes, extortion and shadowy firms (1), (2), (3).
1. “Post-war Iraq: Everybody is corrupt, from top to bottom. Including Me,” The Guardian, February 19, 2016.
2. “Corrupt deals in the textile and leather industries … from “fake” shields to arms deals,” Al Masalah, October 14, 2016, https://bit.ly/2C4t9Ui.
3. “Interior Minister Mohammed Ghabban reveals corruption deals, in armour contracts for the Ministry of Industry, Police Forces and Popular Mobilization contradict international standards,” Al Sharqiya, December 24, 2015, https://bit.ly/2PIBW69.
Compare scores by country
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|Country||62a. Formal policies||62b. Consistent implementation|
|Albania||0 / 100||NA|
|Algeria||0 / 100||NA|
|Angola||0 / 100||0 / 100|
|Argentina||0 / 100||NA|
|Armenia||50 / 100||75 / 100|
|Australia||75 / 100||50 / 100|
|Azerbaijan||0 / 100||NA|
|Bahrain||0 / 100||NA|
|Bangladesh||0 / 100||NA|
|Belgium||75 / 100||NEI|
|Bosnia and Herzegovina||25 / 100||50 / 100|
|Botswana||0 / 100||NA|
|Brazil||25 / 100||75 / 100|
|Burkina Faso||0 / 100||NA|
|Cameroon||0 / 100||NA|
|Canada||0 / 100||NA|
|Chile||0 / 100||NA|
|China||0 / 100||50 / 100|
|Colombia||0 / 100||NA|
|Cote d'Ivoire||50 / 100||50 / 100|
|Denmark||50 / 100||75 / 100|
|Egypt||0 / 100||NA|
|Estonia||25 / 100||50 / 100|
|Finland||25 / 100||NEI|
|France||25 / 100||50 / 100|
|Germany||50 / 100||50 / 100|
|Ghana||25 / 100||25 / 100|
|Greece||50 / 100||75 / 100|
|Hungary||0 / 100||NA|
|India||50 / 100||50 / 100|
|Indonesia||75 / 100||75 / 100|
|Iran||0 / 100||NA|
|Iraq||0 / 100||0 / 100|
|Israel||50 / 100||NEI|
|Italy||75 / 100||100 / 100|
|Japan||75 / 100||100 / 100|
|Jordan||0 / 100||NA|
|Kenya||50 / 100||25 / 100|
|Kosovo||25 / 100||50 / 100|
|Kuwait||0 / 100||NA|
|Latvia||50 / 100||75 / 100|
|Lebanon||50 / 100||50 / 100|
|Lithuania||25 / 100||25 / 100|
|Malaysia||25 / 100||NA|
|Mali||0 / 100||25 / 100|
|Mexico||0 / 100||NA|
|Montenegro||50 / 100||0 / 100|
|Morocco||0 / 100||NA|
|Myanmar||0 / 100||NA|
|Netherlands||25 / 100||75 / 100|
|New Zealand||50 / 100||100 / 100|
|Niger||50 / 100||0 / 100|
|Nigeria||0 / 100||NA|
|North Macedonia||50 / 100||100 / 100|
|Norway||75 / 100||100 / 100|
|Oman||0 / 100||NA|
|Palestine||0 / 100||NA|
|Philippines||25 / 100||50 / 100|
|Poland||50 / 100||25 / 100|
|Portugal||0 / 100||NA|
|Qatar||0 / 100||NA|
|Russia||0 / 100||NA|
|Saudi Arabia||0 / 100||NA|
|Serbia||0 / 100||NA|
|Singapore||50 / 100||75 / 100|
|South Africa||50 / 100||NEI|
|South Korea||100 / 100||50 / 100|
|South Sudan||0 / 100||NA|
|Spain||25 / 100||25 / 100|
|Sudan||0 / 100||NA|
|Sweden||25 / 100||75 / 100|
|Switzerland||75 / 100||NEI|
|Taiwan||50 / 100||50 / 100|
|Tanzania||50 / 100||NEI|
|Thailand||0 / 100||0 / 100|
|Tunisia||25 / 100||100 / 100|
|Turkey||0 / 100||NA|
|Uganda||0 / 100||NA|
|Ukraine||50 / 100||75 / 100|
|United Arab Emirates||25 / 100||NA|
|United Kingdom||50 / 100||25 / 100|
|United States||100 / 100||75 / 100|
|Venezuela||0 / 100||NA|
|Zimbabwe||25 / 100||NEI|