Procurement Ethics
Document Properties
Procurement Ethics |
| Responsible Unit |
OLPS |
| Creator |
Krishan Batra |
| Subject |
CAP User Guide |
| Issuance Date |
January, 1 2006 |
| Effective date |
January, 1 2006 |
| Mandatory Review Date |
January, 1 2007 |
| Audience |
all UNDP Users |
| Applicability |
For all Procurement Transactions |
| Replaces |
Procurement Manual |
| Is part of |
CAP User Guide |
1.0 Description
As funds of UNDP are entrusted to the organization by the public at large, it is imperative that
all transactions committing UNDP are carried to the highest degree of public trust and should be conducted with impeccable
standards.
Go to top 2.0 Relevant Policies
United Nations Standards of Conduct
(Report on Standards of Conduct in the International Civil Service, 1954) UNDP Fin. Rule 102.02 (May 2005) UNDP
Fin. Rule 121.03(d) (May 2005)
Go to top 3.0 Flow Chart
There is no flowchart for this sub-process
Go to top 4.0 Procedures
UNDP
requires that all Business Units observe the highest standard of ethics throughout the procurement process. In pursuance of
this policy, UNDP defines for the purposes of this provision, the terms as set forth below: “Corruption” means the offering, giving,
receiving or soliciting, directly or indirectly of anything of value to influence the action of staff in the procurement process
or contract execution; “Fraud”
means the intentional, false representation or concealment of a material fact for the purpose of inducing another to act up
on it to his/her detriment; “Collusion”
means a scheme or arrangement between two or more Offerors, with or without knowledge of UNDP, designed to establish prices
at artificial, non-competitive levels; “Coercion”
means harming or threatening to harm, directly or indirectly, persons, or their property influence their participation in
the procurement process, or affect the execution of a contract.
The UNDP procurement process must allow Offerors to compete for
UNDP business on a fair, equal and transparent basis. Staff associated with the procurement function, therefore are responsible
for protecting the integrity of the procurement process and maintaining fairness in UNDP’s treatment of all Offerors. The standard
of conduct for all staff involved in procurement to safeguard against conflicts of interest which may compromise the integrity
and objectivity of UNDP include: During the pre-solicitation phase, staff must not allow Offeror(s) access to information,
whether technical, financial or any other nature, on a particular acquisition before such information is available to the
business community at large. Further staff may not use unnecessary restrictive specifications, statements of work or terms
of reference that may discourage competition; Staff having a financial interest in Offeror(s) responding to a UNDP solicitation, are prohibited from any involvement
in the procurement process. Financial interest means anything of monetary value including, but not limited to:▪ An interest in a business consisting of any stock, stock option,
or similar ownership interest in such business, but excluding any interest arising solely by reason of investment in such
business by a mutual, pension, or other institutional investment fund over which the staff member does not exercise control;
or
▪ Receipt of, or the right or expectation to receive, any income in one or more of the following forms:
a consulting fee, honoraria, salary, allowance, forbearance, forgiveness, interest in real or personal property, dividend,
royalty derived from the licensing of technology or other processes or products, rent, capital gain. Staff having personal or professional interests with direct
or indirect influence in an Offeror responding to a UNDP solicitation, are prohibited from any involvement in the procurement
process. Personal or professional interests include, but not limited to: ▪ Any organization, or enterprise over which the staff member, alone or together with an immediate family
member (i.e., employee's spouse or domestic partner, and dependent children), exercises a controlling interest; or ▪ Any corporation, partnership, sole proprietorship, firm, franchise,
association, organization, holding company, joint stock company, receivership, business or real estate trust, or any other
nongovernmental legal entity organized for profit, non-profit, or charitable purposes; or▪ Any executive position or membership on the Offeror’s board regardless of compensation; or
▪
Any position that includes responsibilities for a significant segment of the Offeror’s operation or management of a business. Staff may not disclose proprietary and source selection information,
directly or indirectly, to any individual other than such authorized to receive information, at any time prior to or after
the selection and contracting process. UNDP may exclude suppliers, contractors and consultants from tendering for procurement opportunities in UNDP-supported
programmes or projects if the Offeror in question or their affiliates provided consulting services for the preparation and
implementation of a project, and in order to prevent a conflicts of interest, the Offeror and their affiliates are disqualified
from subsequently providing goods and civil works under UNDP financing for the same project.
Any procurement
personnel maintaining a conflict of interest or potential conflict should immediately notify the RR/Country Director (CD)
or Head of the Business Unit. To safeguard UNDP against illicit use of publicly entrusted funds in terrorist financing, Business Units should assess
all entities with whom business is conducted, to ensure that funds are used for their intended purposes. To sustain financial
control of such public funds and compliance with the UN’s regulations and guidelines regarding anti-terrorist financing practices,
organizational due diligence requires Business Units to undertake: review of the entity’s profile (i.e., background,
financial reports, annual statements); confirm business registration with government authorities; and verify entity against the United Nations Security Council 1267 Committee’s list of terrorists and terrorist financiers.
All staff
are responsible for the regularity of actions taken by them in the course of their official duties. Any staff member that
takes action contrary to the UNDP Financial Rules and Regulations or these Guidelines may be held personally responsible and
financially liable for the consequences of such action.
Go to top 5.0 Inputs
N/A
Go to top 6.0 Deliverables
N/A
Go to top 7.0 Roles and Responsibilities
N/A
Go to top 8.0 Templates and Forms
N/A
Go to top 9.0 Additional Information
To protect the integrity of the procurement process, potential abuses may be referred to the UNDP Online Fraud Reporting
System or to OLPS www.undp.org/hotline/
Go to top 10.0 Lessons
N/A
Go to top 11.0 On The Drawing Board
Confidentiality Agreement
Go to top
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