Agreement to Prevent Corruption within the Piping Market Sector

Summary

Countries of operation: 
Colombia (HQ)
Year: 
2005
Sector: 
Heavy manufacturing - Light manufacturing - Public works - Utilities
Collective Action Type: 
Standard Setting Initiatives
Members: 

American Pipe and Construction S.A., Eternit Colombiana S.A., Colombiana de Extrusión – Extrucol S.A., Flowtite Andercol S.A., PVC Gerfor S.A., Pavco S.A., Celta S.A., Titan Manufacturas de Cemento S.A., Tubotec S.A., Tuvinil S.A., Pam Colombia S.A, Transparencia por Colombia

Description: 

This initiative brings together water and sewage pipe supplier companies together to fight corruption in the public procurement process in Colombia.

Further information

Origins: 

In the 1990s and early 2000s the pipe manufacturing sector suffered from increasing mistrust and a lack of transparency, with corrupt practices rampant, particularly in the area of sales to the public sector. The pipe business sector's main trade association, Asociación Colombiana de Ingeniería Sanitaria y Ambiental (ACODAL) sought the assistance of Transparencia por Colombia in 2003 to help improve the situation. With some companies having attempted to address the situation individually, to little avail, while others had some varying degrees of internal controls, ACODAL viewed a collective response as the best way to approach the existence of corruption within the sector. The signing of the sectoral agreement in April 2005 followed a long period of meetings and discussions, identifying the primary corruption practices, risks and controls to address them.

Membership organization structure: 

The initiative includes a company-created Ethics Committee, responsible for oversight of administration and enforcement of the agreement. Transparencia por Colombia, the Transparency International local chapter in Colombia, serves as a permanent advisor. The policies and guidelines that form the Pipe Manufacturers Agreement are based largely on Transparency International's "Business Principles for Countering Bribery" and work between business and civil society representatives in a steering committee.

 

The initiative also makes use of auditing and enforcement mechanisms, which fall under the responsibility of the Ethics Committee. The Committee works on the basis of a preventative approach, whereby any concerns raised by participatory companies can be examined and disseminated this information among the other companies.

 

Funding costs for the initiative are shared by the participating companies

Thematic scope of the initiative: 

Public procurement

Is the collective action initiative open to other companies?: 
Yes
Evaluation by stakeholders: 

The initiative has raised the profile of the pipe manufacturers sector. In addition, many participatory companies have increased their levels of anti-bribery measures internally, through greater emphasis on training, expressions of support from Board level, and exposing third-parties to the agreement.