Private Sector Anti-Corruption Agreement in the Pipe Manufacturing Industry

Action and Outcomes

To reduce the mistrust in the pipe manufacturing industry in Colombia and reduce opportunities for fraud, the Sanitary and Environmental Engineering Association (ACODAL) approached Transparencia por Colombia to establish a sectoral Anti-Bribery Agreement. The Agreement stipulates that each company must introduce a general anti-corruption policy. To consolidate the Agreement, participating companies (9 companies – covering most of the Colombian pipe market) created an Ethics Committee to monitor suspect tenders or conduct and promote compliance.

The agreement is cited as good practice example for integrity pacts in the water sector.

The Ethics Committee has since uncovered irregularities in several projects.

More on the set-up of a sectoral agreement and key success factors of this case in Colombia in this IRC conference paper From Dirty to Clean Pipes 

Lessons Learned

for implementing anti-corruption agreements:

• Leadership from top management of engaged stakeholders must be firm and enduring

• Participation of a third-party, such as Transparencia por Colombia in this case, gives credibility and facilitates coordination and follow-up of the process
• Coordination with national governance reforms helps to mobilize political commitment