On March 14, 2012, the Public Construction Commission (PCC) called together the Financial Supervisory Commission of the Executive Yuan, Agency Against Corruption of the Ministry of Justice, Transparency International in Taipei and the local Bankers Association to jointly establish an anti-corruption mechanism in public construction, by learning the anti-corruption policy of the World Bank.
Jenn-Chuan Chern, Minister of the PCC, said that taking the reputation of the borrower and enterprise ethics into consideration, bankers are encouraged to incorporate the bribery track record in the reference for credit evaluation, even no laws restrict bankers to offer loans to vendors which have bribery record. The success of this mechanism relies on self-realization and self-discipline in the banking system as well as the related responsible agencies’ anti-corruption propaganda. In this regard, PCC will initiate an Anti-corruption Declaration which will be co-signed by various sectors involving the industries, government agencies and Transparency International in Taipei.
The PCC indicates that the bribery punishment mechanisms in the domestic Government Procurement Act involve contract termination, debarment of one-year in doing business with the government, and fines, in addition to the criminal punishment by other laws. Together with the support from the banking system to this newly proposed loan debarment mechanism, the anti-corruption effect can be greater strengthened. The small and medium business credit guarantee system and public banks, which belong to the government sector, will play a leading role in response to this policy.
The PCC further indicates that, the promotion of the anti-corruption mechanisms is a win-win-win strategy for the government, the construction industry and the banking system. For example: the construction contract amount will be fully used in the construction works, and thus the quality of the construction works will not be jeopardized. The bankers offer their loan to suppliers of integrity will reduce their operational risks. Most importantly, a government of integrity and effectiveness will improve its international image.