Procurement Risk:

High

Score:

38/100

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57 50/100

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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Legal framework Score: NS / 100
This indicator is not assigned a score in the GDI. National defense is an almost exclusive prerogative of the executive, which defines the country’s…
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Corruption risks Score: 100 / 100
Article 17 of Decree No. 2006-343 establishing the Code of Ethics for Public Procurement recognises the existence of corruption risks such as conflicts of…
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Effectiveness Score: 0 / 100
Defence purchases must comply with the Public Procurement Code [1]. However, exceptions exist and concern certain large purchases such as aircraft offered to the…
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58 42/100

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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Formal procedures Score: 50 / 100
The procurement and needs assessment cycle is defined by the armed forces each year [1]. These needs must be included in the budget of…
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Transparency Score: 25 / 100
Information on defense procurement may be publicly known because it is included in the finance law [1]. The Ministry of Defense’s calls for tenders…
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Implementation Score: 50 / 100
In terms of public finances, Madagascar has detailed policies and procedures for each stage of the procurement cycle implementation process. At least two decrees…
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59 50/100

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

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Independence Score: 50 / 100
At the Ministry of Defence there is a supervision mechanism for defence procurement. Concerning the supply of weapons and ammunition, special forms exist and…
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Effectiveness Score: 50 / 100
The Court of Auditors exercises control over the use of public funds, including defense procurement. It establishes reports but it is rare that the…
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Transparency Score: 50 / 100
The official audit reports of the Court of Auditors are accessible to the public but they do not include details and even less regarding…
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60 13/100

Are potential defence purchases made public?

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Policies Score: 0 / 100
Within the Department of Planning and Strategic Anticipation there is a Strategic Planning Department. This service has a “Defense Planning” Division. This Division is…
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Notice of planned purchases Score: 25 / 100
Prospective purchasing plans generally only cover the coming year or even less than a year. Normally, it is when the detailed budget of each…
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61 50/100

Are actual defence purchases made public?

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Comprehensiveness Score: 50 / 100
The ARMP always details the purchases of the various ministries including the Ministry of Defense. It makes public, in the reports it draws up,…
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Accessible data Score: 50 / 100
The data is distributed in PDF format and comparisons are always possible, including the number of calls for tenders won by a company or…
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62 38/100

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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Formal policies Score: 50 / 100
Decree No. 2006-343 establishing the Code of Ethics for Public Procurement stipulates in its article 17 that “any candidate and any holder of public…
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Consistent implementation Score: 25 / 100
Some suppliers, including those of the Ministry of Defense, have been prosecuted for corruption. The authorities responsible for regulating public markets are aware of…
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63 25/100

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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Procurement requirements Score: 50 / 100
According to government officials, defense procurement answers to the country’s defence and security policy but there is no clear national defence strategy with quantitfied…
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Scrutiny Score: 0 / 100
In reality, no active control exists. The Parliamentary Commission in charge of National Defense does not really have the supervisory power to control whether…
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Purchases Score: 25 / 100
Defence and security requirements are more or less respected [1]. However, in the case of Madagascar, and given the weakness of financial resources, the…
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64 NEI/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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Open competition Score: NEI / 100
Infrastructure construction follows the procedures detailed in the Public Procurement Code which stipulates in its article 32 paragraph 1 that the authorities in charge…
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Scrutiny of single/restricted competition procedures Score: NEI / 100
There is no clear evidence that all single-source contracts are routinely justified to an external oversight body. We only have the legal framework side,…
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65 100/100

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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Conflicts of interest Score: 100 / 100
The Law on the Public Procurement Code includes articles on the ethics that civil servants who participate in defining the specifications of calls for…
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Audit Trail Score: 100 / 100
A full audit trail exists to determine which officials were involved in the selection of suppliers, the design of specifications and the decisions to…
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Transparency Score: 100 / 100
The legal framework for public procurement is clear and applies to all stages leading to the award of public contracts. Transparency concerns tender committees…
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Scrutiny Score: 100 / 100
The ARPM always carries out checks between the drafting of the specific specifications of calls for tender. Audit missions are thus carried out. It…
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66 75/100

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

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Legal framework Score: 100 / 100
Article 8 of Decree No. 2006-343 establishing the Code of Ethics for Public Procurement stipulates that civil servants in charge of public procurement are…
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Sanctions Score: 100 / 100
The Law on the Public Procurement Code, in Title X, provides for sanctions. Article 90 stipulates in particular “the public procurement regulatory authority establishes…
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Enforcement Score: 50 / 100
Cases of investigations exist and prosecutions have been launched but interference, particularly political interference, is also present. The Guide for the prevention of corruption…
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Training Score: 50 / 100
The Guide for the Prevention of Corruption in the Public Procurement Process details the types of corruption, potential actors and their descriptions. It also…
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67 50/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

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Reporting policies & procedures Score: 100 / 100
ARMP agents carry out an unannounced inspection in accordance with official procedures. They may request the necessary documents to determine whether contractors have complied…
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Transparency Score: 25 / 100
One of the ARMP’s missions is to promote transparency in the public procurement system by publishing all information relating to public procurement in the…
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Monitoring Score: 50 / 100
One of the missions of the ARMP is to promote transparency in the public procurement system by publishing all information relating to public procurement…
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Enforcement Score: 25 / 100
In the event of non-performance of contracts, appropriate measures are taken. Bidders can always make a request for review of a decision or an…
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68 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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Complaints mechanisms Score: 100 / 100
Article 78 of the Law establishing the Public Procurement Code stipulates that “any person having an interest in bidding or concluding the contract and…
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Effectiveness and Accessibility Score: 25 / 100
Despite the existence of mechanisms allowing companies to denounce wrongdoing, cases of denunciation remain rare [1]. Therefore, the available mechanisms such as online reporting,…
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Retaliation Score: 25 / 100
In general, it is rare for a company to complain when it is the victim of embezzlement [1]. Companies are always afraid of being…
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69 67/100

What sanctions are used to punish the corrupt activities of a supplier?

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Sanctions Score: 100 / 100
The various penalties are set out in articles 18 to 21 of the Code of Ethics for Public Contracts (Decree 2006-343), depending on the…
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Undue influence Score: 50 / 100
Companies have been prosecuted for corruption. The most famous case is the conviction of the director of a large company to 5 years in…
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Application of sanctions Score: 50 / 100
Article 39 of Law No. 2016-020 on the Fight against Corruption stipulates that recidivism as well as any fraud for the purpose of breaking…
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70 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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Legal framework Score: 0 / 100
A legal vacuum exists regarding compensation contracts in Madagascar. The law establishing the Public Procurement Code does not mention them [1]. The official website…
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Due diligence Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets [1].
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71 0/100

How does the government monitor offset contracts?

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Policies & procedures Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets. [1] [2] [3]
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Transparency Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets. [1] [2] [3]
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Monitoring Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets. [1] [2] [3]
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Enforcement Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets [1]. Specialists in the field also confirm this absence even in practice…
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72 0/100

What level of competition are offset contracts subject to?

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Score: 0 / 100
The Public Procurement Code does not mention the existence of compensation markets [1]. Specialists in the field also confirm this absence [2][3].
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73 NEI/100

How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?

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Policies Score: NEI / 100
Article 22 of the Public Procurement Code Law stipulates that “companies may present their application, their offer or their proposal in the form of…
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Enforcement Score: NEI / 100
In the event that an agent does not comply with his obligations regarding corruption, he is subject to Article 17 of Decree No. 2006-343…
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74 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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Score: 0 / 100
The only information that the public can have is that found in the finance law in which the defence budget appears [1]. The contracts…
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75 NS/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

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Prevalence: selling nations Score: NS / 100
This indicator is not assigned a score in the GDI. In Madagascar, certain countries have a certain influence on the country’s provisioning of military…
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Justification Score: NS / 100
This indicator is not assigned a score in the GDI. When justifying procurement from Russia, the Malagasy authorities stated that since all the weapons…
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Prevalence: domestic pressures Score: NS / 100
This indicator is not assigned a score in the GDI. Certain high-ranking military officers exercise influence over countries supplying military equipment. This depends, in…
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0 NA/100

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Government Policy

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Q57 NA/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?

View Question
Q58 NA/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?

View Question
Q59 NA/100

Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?

View Question
Q60 NA/100

Are potential defence purchases made public?

View Question
Q61 NA/100

Are actual defence purchases made public?

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Capability Gap and Requirements Definition

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Q62 NA/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?

View Question
Q63 NA/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?

View Question

Tender Solicitation, Assessment and Contract Award

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Q64 NA/100

Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?

View Question
Q65 NA/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?

View Question
Q66 NA/100

Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?

View Question

Contract Delivery and In-Service Support

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Q67 NA/100

Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?

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Q68 NA/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?

View Question
Q69 NA/100

What sanctions are used to punish the corrupt activities of a supplier?

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Offset Contracts

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Q70 NA/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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Q71 NA/100

How does the government monitor offset contracts?

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Q72 NA/100

What level of competition are offset contracts subject to?

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Agents / Brokers

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Q73 NA/100

How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?

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Financing Package

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Q74 NA/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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Seller Influence

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Q75 NA/100

How common is it for defence acquisition decisions to be based on political influence by selling nations?

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