FNE signs agreement with ChileCompra to combat collusive conduct in tenders

Tuesday, April 19, 2011

The economic unit of Chile's district attorney's office (FNE) has signed an agreement with online government procurement portal ChileCompra aimed at detecting collusive conduct in state tender processes, according to local newspaper El Mostrador.

ChileCompra director Felipe Goya and his FNE counterpart Felipe Irarrázabal signed the convention, in which both institutions agreed to a joint effort in detecting and preventing collusive conduct in tenders and procurement processes through ChileCompra.

The agreement establishes mutual collaboration between the entities in activities of dissemination, training of public officials and transferring of information, such as public reports and unclassified studies that could be used in FNE investigations.

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According to Goya, the agreement continues Chile's efforts to meet the Organization for Economic Cooperation and Development's (OECD) standards. He said that through the agreement a collusion monitoring mechanism will be developed for the procurement processes, giving FNE direct access to ChileCompra's databases.

Irarrázabal said collusive practices hurt both public entities and markets of the respective goods and services, which experience higher prices, lower production, lower quality of goods and services, lack of choice and hindrances to innovation.

The entities will periodically evaluate the initiative's implementation and will also carry out joint training activities directed at providers, especially SMEs, to explain ChileCompra and encourage participation.