Saturday, July 26, 2008

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BULLET TRAIN The tender would violate laws on transparency - PUBLIC WORKS


are local and international rules against corruption in public procurement.
No feasibility studies.
And the statement was key changes after the award.


The specifications for the controversial requirements violate local laws and international agencies require to avoid corruption.
A new report calls into question the project.

"There were some anomalies that would indicate that the bid was directed toward a particular bidder "

project Another black hole is the awarding of train operation



RECORD. IN FRANCE, THE HIGH SPEED TRAIN BUILT BY ALSTOM CAME TO 574 KM / HR. WILL DO THE SAME COMPANY IN ARGENTINA.

uncomfortable
As a remnant of the 90, the project officer with a bullet train to join the cities of Buenos Aires , Rosario and Córdoba away, the speed that only the fireball can achieve international standards of transparency bidding on public works: Clarín gathered the requirements and recommendations that Argentina and multilateral agencies require to ward off these millions calls the shadow of corruption, and compared with the winding road that has been following the case of bullet train . In turn, an unpublished report of the civil organizations Poder Ciudadano and Metropolis Platform analyzes the dark corners of plan that haunts the presidential couple.

Objections to the project are multiplying in recent months. The Federal Justice analyzes two criminal complaints in the coming days would proceed one of them, the Office of Administrative Investigations already begun its own investigation and the legislative opposition also put under scrutiny the tender earlier this year awarded to a consortium led by French company Alstom . The report Poder Ciudadano, written by the specialist on transparency issues Nicolás Dassen is terse: " existed in the bidding process, certain anomalies that would indicate that the bid was directed toward a particular bidder " says bluntly. Argentina

poured out the minimum conditions of transparency for tenders public on laws and 13,064 17,520 , the decree 1023-1001 and a series of administrative regulations. In turn, the international standards of transparency is normalized in such documents as the Convention against Corruption the UN the Convention against Transnational Bribery the Organization for Economic Cooperation and Development (OECD) (which includes Argentina with 35 countries) and other global circulation papers.
Are any of your requirements? There is a clear budget and that does not change during the bidding, the project responds to tender the technical and environmental studies prior, and that bidders can show how they will finance the project. Conditions were not met in the bidding of the bullet train.

says Let's see what technical report prepared by Dassen :
- " Project formulation is too broad and indeterminate, preventing compare different offers."
- " There was a lack of expert advice to the law requiring public investment (feasibility study and environmental impact, and a decision to approve), that should be performed by the National Public Investment. This can configure a cause of invalidity because they are essential requirements for the validity of the award. "With these studies, Transportation should have argued the reasonableness of the project and its feasibility. Nothing less.
-" There defective clauses writing bid specifications that made it impossible for fair competition between different companies to compare their offers ". A report by the deputy of the Civic Coalition Adrian Perez (author of a strong complaint to the Office of Administrative Investigations ), argues that this convoluted construction of the statements, that differ in their interpretation and sudden changes in the race finished leaving a single bidder, was known for the other two, according to Perez, there were only to generate "a fiction bidding.
- " candidates were required to own investment 50% of the work, a very ambitious requirement that restricts participation different bidders." The warning sirens at the lack of transparency of bullet train (" a file goes faster than the train itself " according to an official recognition that manipulated) thunder when finished in April, three months after the award to Alstom, the State changed the conditions, terms and rates of payment plan that was presented by the company: investment would no longer be funded to 16 years and an annual interest of 5.2% by French bank Societe Generale , but would with a loan from the bank Natixis "at a rate ranging between 12 and 16% per annum and a payment period of 30 years, leading to total estimated costs at about 4,000 billion. " The original budget was 1,350 million dollars. This change, made with a simple administrative decision of the former economy minister Martin Lousteau, was denounced to the courts by lawyers Ricardo Monner Sans and Mario Cafiero . According to the report written by Dassen, " the change breaks the principles of competition between bidders should possess a tender, especially when the change is disadvantageous to the interests of the state. This can cause the annulment of the award ."

Another black hole project on which no one paid attention until now is the awarding of train operation, which the tender specifications would be left Ferrocentral , Buenos Trains Aires, Nuevo Central Argentino Belgrano Cargas and . " This is very serious," Clarín confessed to a lawyer analyst bidding. "The big gains (usually outweigh the cost of the works) arising from the operation of the service, so always separate bid ."

Under these big questions, the specifications and all resolutions swimming facilities that make up the regulatory body of the tender other small hidden clauses that aroused suspicion s.
Here are some: the builder is allowed to meet with level crossing (much cheaper than bridges or tunnels) the communication between both sides of the roads in stretches where the train is moving at less than 150 kilometers per hour , " while in Europe are carried out, for safety, level crossings when the speed is less than 100 miles per hour "says the report.
Another: while the average cost of the works bullet train linking the Chinese cities of Beijing and Shanghai was 10 million euros per kilometer and the French train Paris-Metz was 10.7 million " the budget by the Argentine government is around 1.2 million euros per kilometer, which gives strong suspicions regarding further adjustments in the final price .
One more: the Technical Specifications warns the bidders that they can not provide for the conduct of expropriation, "except when the enforcement authority (the Secretary of Transportation led by Ricardo Jaime ) determine what, if absolutely necessary ". That is not possible, but it could. But that's not all: According to Article 17 of the Constitution, expropriation in Argentina "because of public interest" can only be arranged by the Congress.

While suspicions remain grow, the secrecy with which the government manipulates the gigantic project suspicions.

To feed the report Poder Ciudadano wanted to review the administrative record of the bidding through a request for access to public information. As all the legal deadline expired without the Secretariat of Transportation would agree, that request became a complaint with the Anti-Corruption Bureau .
News, impious, do not serve to dispel doubts. On Monday July 7 and after consultation with employers who admitted that government contracts have " gray areas where the legality of certain payments was not entirely clear ", the OECD asked the country to take steps to punish firms that pay bribes. In turn, the ranking on Transparency International corruption annually disseminates Argentina is in an uncomfortable number 105 among 180 countries. One of the causes of such qualification is the extreme weakness that its procurement system provides for possible bribery.


The analysis of the project, point by point

The following are the minimum conditions Under Argentine law and international standards be met for a contractor selection process through of bidding. Then see how you did each of these steps in the case of the bullet train

In transparent bidding
- There is a priori a thin budget estimate.
- The official budget does not have conditions or is unchanged during the course of the tender.
- was tendered a draft work with all relevant previous studies. Never call a tender for general guidelines that generate inequality and misinformation among the bidders, who may not develop serious offers because they neglected on the likely costs of the work. If the state does not, can make a design contest and then tender the work of the winning project.
- the specifications are developed with the principle of equality, without addresses for any business or industry.
- Deadlines are broad dissemination of the statement to call as many bidders.
- shown in a clear and certain about what the investment financing.
- Contract signed with the contractor in compliance with the model that incorporated the statement.
- If it is a work which will then be concession management, there are two options: organize two separate bids (to do the work and another to select the concessionaire will operate the service) or is a one to choose the company that will build and manage this work, like highways.

The bullet train bid
- The budget estimate was not clear enough.
- bidders were required to solve 50% of funding (on a budget indeterminate), leaving the road to one of three candidates. After this requirement was modified.
- No feasibility studies or environmental. The statement was too broad and left many decisions (involving different costs) in the hands of the bidders. There was a previous project or open tender was called to stroke.
- For the changes in the timing and conditions, analysts and lawmakers complain that the competition was addressed to Alstom won .
- Interested companies only had two months to sign up for prequalification.
- The funding plan was modified strongly Alstom has been awarded the project. The changes included the financing bank, the extended term financing and a significant increase in interest rates.
- The contract contained several changes from the original statement. When I sign, I was not even approved the funding
nor had established the final cost of the work.
- Until now, the bullet train service would be awarded directly to current licensees of passengers and cargo
pathways operating Buenos Aires-Rosario-Córdoba.



Three cases opened on suspicion of bribery in public works in Argentina


Skanska was launched in 2006 the investigation into the alleged payment of bribes to win a tender works in the Northern Gas Pipeline , which caused the resignation of two officials Kirchner. The Swedish firm Skanska acknowledged the payment of "improper commissions " by 17 million pesos. (!!!)

Yacyretá
Argentina's largest hydroelectric dam was budgeted at U $ S 5,340 million and when completed will have cost more than U $ S 11,000 million. Carlos Menem ( see more in the blog ... ) referred to it as "a monument to corruption." The irregularities are investigated in two dozen lawsuits.

Siemens-DNI
In 1998, Menem tendered made the new DNI and won the German Siemens . then annulled the contract. And three months ago, an officer of the firm admitted in his country, which had paid bribes for U $ S 70 million. The court case is paralyzed.



Alstom in Brazil accused of having paid bribes
BACKGROUND OF CORRUPTION OF THE COMPANY TO BUILD THE BULLET TRAIN
An audit said that $ 31 million distributed among officials paulistas

The multinational Alstom French origin in Brazil showed its dark side, according to an audit of the international consultancy KPMG , since 1995 allocated $ 31 million to line the pockets of officials and politicians in São Paulo and other Brazilian states to get large contracts .

According to research by the auditors, the bulk of black money was used to bribe officials who understood São Paulo on trains and subways (the specialty of the company), but another part of the " commissions" would have been distributed for contracts in the construction of a power plant.
The Brazilian Justice has already established what was the modus operandi that allowed the company to create an international network of corruption . In San Paul , Alstom coimeó senior members of four successive governments, that of Orestes Quercia , Luiz Antonio Fleury , Mario Covas and Geraldo Alckmin . Covas died. But Alckmin of the Brazilian Sodaldemócrata Party and former presidential candidate defeated by Lula in 2006, aims to compete by the city government of San Pablo at the polls in October.

In France and Switzerland, KPMG consultants discovered that the company remitted the money to ghost firms accounts in Swiss banks, the principality of Liechtenstein and tax havens like Bahamas and Virgin Islands. The usual amount for "improper commissions " was 15 percent of the business. Among those who moved
ghost accounts identified four Brazilian companies, one Swiss and one French. One of the Brazilians is an ammunition Luiz Claudio Mendes , the energy sector, who designated as " bridge" between Alstom and the government of San Pablo in several works, including the more controversial underground São Paulo, a member of a package funded by the World Bank .

The French giant Alstom, which was facing bankruptcy in 2004 and thanks to the efforts of current President Nicolas Sarkozy was rescued with a state contribution of 800 million euros, is investigated for corruption in France Switzerland and Mexico where sanctioned by the government have paid 11 million dollars in bribes to officials.
addition, the newspaper The Wall Street Journal are targeted businesses in Venezuela , Indonesia and Singapore . Told the Brazilian daily Folha do Sao Paulo , President global Alstom, Patrick Kron , denied paying bribes, " The company has not been affected by the contagious disease of corruption. No corrupt public officials and enforce a policy of zero tolerance for ethical deviations " .

DEFENSE. ALSTOM PRESIDENT, PATRICK KRON, denies bribery.


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