[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[Senate]
[Pages S12636-S12637]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   THIRD-PARTY PROCUREMENT MONITORING

  Mr. COCHRAN. Mr. President, it is my understanding that corruption 
and fraud are major problems in the procurement of goods and services 
funded by multi-lateral lending programs. Since these programs are paid 
for by U.S. taxpayers, the Senate Appropriations Committee identified 
potential mechanisms in its report accompanying the fiscal year 1999 
Foreign Operation Appropriations bill to ensure that procurement 
processes by borrowing or recipient nations are transparent, non-biased 
and open.
  One of the mechanisms identified by the committee is independent 
third party procurement monitoring. An independent third party 
procurement monitor provides an independent review and assessment of 
government procurement projects by auditing and certifying that the 
procurement process is non-biased, open, transparent and fair. 
Importantly, independent third party monitoring provides technical 
assistance and training in country to improve the quality of the 
procurement process, thereby making the procurement process more 
effective. The program also verifies that the contractual, technical, 
economic and financial obligations of the supplier are fully 
discharged.

[[Page S12637]]

  I encourage the Administration to support the use of programs such as 
independent third-party procurement monitoring which have proven their 
value in reducing costs by deterring corruption and fraud, ensuring the 
quality of the goods and services provided, stimulating competition and 
free trade, as well as enabling U.S. business to compete more 
successfully.

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