JEL Classification: D73, H57.
Keywords: public procurement, tender, corruption, risk indicators, contracting authority, firms.
This paper leverages open data from Italy's National Anti-Corruption Authority (ANAC) and relevant research to propose a system of risk indicators for identifying potential corruption in public procurement. Owing to the significant resources involved, public procurement is vulnerable to corruption, particularly in Italy, where it is often linked to organized crime. The proposed individual indicators are auction-specific, each addressing different aspects of a tender. Using these indicators, we also calculate a composite auction risk measure and, through further aggregation, create indicators at the level of contracting authorities and winning bidders. Indicators are assessed using confidential data from Italy's Financial Intelligence Unit. The potential operational uses of these indicators include monitoring public tenders, awarding authorities and contractors, and the support to anti-money laundering activities.
