CoST participates at Fourth OECD G20 High Level Conference on Corruption
CoST Chair Chrik Poortman, recently took part in a Panel discussion at the Fourth OECD G20 High Level Conference on Corruption on ‘Sweeteners in international Contracts: are ‘offsets’ the new corruption threat?
Many countries that purchase foreign-source equipment (such as defence, transportation and power generation) require sellers to commit to an "offset" agreement. As a condition of the sale of goods or services, the seller is obliged or encouraged to provide additional economic or social benefits – beyond the base transaction – to the purchasing Governments economy. The Panel discussed how this practice creates risks that offset contracts will be used to conceal bribes and how this can be mitigated.
Chrik Poortman stated, “It is important that there is greater disclosure, transparency and accountability of offset agreements to reduce the potential for corruption. This means the CoST disclosure requirements should be applied to any ‘offset’ arrangements that form part of infrastructure investments”
Chrik was joined on the Panel by Christian Sylvain, President, European Club of Countertrade & Offset (ECCO), France, Mete Demirci, Chief Inspector, Prime Ministry Inspection Board, Turkey, Pedro Montoya Santos, SVP, Group Ethics & Compliance Officer, Airbus Group (France) and member of the Business and Industry Advisory Committee to the OECD (BIAC).