Financial Crime World

High-Risk Business Environment in Burkina Faso’s Public Procurement

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Burkina Faso, a landlocked country in West Africa, is facing significant corruption risks in its public procurement sector. According to the Global Competitiveness Report 2014-2015, businesses dealing with government contracts are vulnerable to high levels of corruption, including facilitation payments, bribery, and preferential treatment.

Widespread Corruption

Corruption is widespread, with procurement officials being among the most corrupt government staff, according to a survey by Integrity Council for West Africa (ICS) in 2016. The Autorité de Régulation de la Commande Publique (ARCOP), responsible for monitoring government contracts, has struggled to ensure transparency and fairness in the process.

Lack of Transparency

A report by Global Integrity (GI) found that many public contracts are awarded without a tender, with companies often agreeing on terms through mutual understanding rather than a competitive bidding process. The percentage of tenders awarded without a tender increased from 14% in 2014 to 18.5% in 2015, indicating a decline in transparency.

Efforts to Enhance Transparency and Accountability

In response to these challenges, Burkina Faso has implemented measures to enhance transparency and accountability, including the Extractive Industries Transparency Initiative (EITI). The country is currently in the candidacy stage of the process and aims to be assessed against the 2016 standard to gain “Compliant Country” status.

Burkina Faso’s legal framework for anti-corruption efforts is in place, with the Penal Code criminalizing corruption, embezzlement, and abuse of office. However, implementation has been lacking, and anti-corruption agencies lack enforcement powers. The National Transitional Council passed a new anti-corruption law in 2015, broadening the range of officials required to submit financial asset declarations.

Role of Civil Society

Civil society organizations have played an important role in promoting transparency and accountability. The media, although facing some restrictions, has experienced less political interference since the regime transition in 2015. Journalists often report on issues for financial compensation, which can compromise their integrity.

Recommendations for Companies

To mitigate corruption risks associated with public procurement, companies are recommended to use specialized due diligence tools. Burkina Faso’s business environment remains high-risk, and companies must be vigilant when operating in this sector.

Sources

  • World Bank & IFC: Doing Business 2017
  • Global Integrity: Africa Indicators - Burkina Faso 2016
  • Freedom House: Freedom of the Press - Burkina Faso 2016
  • US Department of State: Investment Climate Statement - Burkina Faso 2016
  • US Department of State: Human Rights Practices Report - Burkina Faso 2016
  • Bertlesmann Foundation: Transformation Index - Burkina Faso 2016
  • Réseau National de Lutte Contre la Corruption (REN-LAC): Etat de la Corruption au Burkina Faso 2015
  • Transparency International: People and Corruption: Africa Survey 2015
  • World Economic Forum: Global Competitiveness Report 2014-2015
  • World Economic Forum: Global Enabling Trade Report 2014