International Administrative Law – Between 15 and 20% of the gross world, the product generates by public procurement. Therefore, it is essential to avoid corruption in these processes through international and transnational administrative law.

International administrative law is the legal answer to the problems derived from the internationalization of organizational activity. One of them is corruption in public procurement, an issue that has spread in various countries – and with more incredible notoriety – in recent years.

The companies that contract with the states have been transnational, and their policies and conflicts are standard regardless of the place or countries where they carry out their operations. So what is the current picture? Previously, corruption was seen in our region as an almost exclusively criminal law problem and only national. Today, administrative activity and corruption require the punishment of officials and companies that have committed illicit acts and call for mechanisms and procedures to prevent them. It is because corruption in this field affects not only the economic competitiveness of the country in question and that of the Public Sector but also the proper use of public resources and, ultimately,

Prevention is the essential factor in which to aim

From 15 to 20% of the gross world product is generated by public procurement. It means that, in an environment of increasing globalization, the public procurement market is a beautiful one for companies that act transnationally. On the other hand, this situation requires that the states focus on constructing a transnational administrative law capable of facing this situation’s challenges. The Odebretch case clearly shows that cooperation between countries can counteract the problems. In the first instance, improvements can make from these four axes:

  1. Work at the national level to adopt public procurement regimes to the applicable instruments and treaties in the fight against corruption. An example is the United Nations Convention against Corruption (UNCAC) or, in our region, the Inter-American Convention to Combat Corruption.
  2. Focusing on achieving a certain uniformity of administrative procedures to control and supervise public contracts. It is about adopting guidelines of common international acceptance in good practices of general contracting, control and prevention of corrupt practices.
  3. Each State must harmonize its internal legislation with those countries where its main contractors operate and come from. The goal is to eliminate the asymmetries between different states’ norms that hinder international cooperation.
  4. Incorporate restrictions and disincentives to corruption in its internal regulations and contracts that transform it into an act that is not profitable in the short or long term.

Thanks to international cooperation, the improvement of relations between public administrations. And the reforms of internal regulations in each country, it is possible to encourage and improve prevention. It is necessary to create rules of administrative law – both internal and transnational – to improve decision-making processes to provide transparency and “put a cost” on corruption.

The High Price of Corruption for Officials and Contractors

The high price of corruption for officials and contractors

It is one of the main points. Changing the traditionally represented matrix in our countries is essential: being corrupt is “good business”. Companies and officials must be aware of the criminal punishment in falling into illicit acts. And must understand that corruption is not profitable at any level. The main functioning of this procedure is very high.

For example, when engaging in these practices and the criminal consequences. It could include rules in the national contracting regimes that would provide a convicted company. That had a contract terminated. Due to corrupt practices will not remain able to present themselves in tenders for contracts in that country, or you will lose contracts there. Thus, if this rule were to end up being adopted by all the region countries. It would result in a clear disincentive to carrying out these kinds of practices, turning it into a “lousy business“. Not only should there remain the risk of going to jail. The cost of losing contracts in Latin America for a certain number of years must also remain considered. That means raising the price of corruption and discouraging it from the start.

A change of vision is necessary to prevent and counteract this and other problems. Such as money laundering or terrorist financing. Then, it is possible to set common standards and guidelines. And for both factors to be influential in the countries at a global level.