PPCC Training Manual 9 (1).doc

Managers and auditors need to be observant of the

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Managers and auditors need to be observant of the following indications of potential unethical practices within procuring entities: the extent of competition for contracts, in general or particular case; the history of questionable business practices in the country concerned and in the relevant branches, the procuring institutions and the business communities; The bargaining position of the parties to the contract; Level of experience or competence of procurement staff in terms of training; Level of staff remuneration lending to temptations; Over reliance on traditional suppliers/contractors; likely to lend to acquisence; The choice of an unusual contract structure, including unusual payment terms; Conduct of officials responsible for procurement; - Opulent life style of procurement officials. (Ostentatious or extravagant life style of practitioners. A government might wish to organize a meeting with representatives of the private sector, civil society groups, for an informal discussion about its own assessment about the potential character of corrupt practices and the means, which government and business could adopt in order to detect and avoid such practices. 14.2 Code of Conduct A code of professional behavior/ conduct for public procurement officials should generally inspire high ethical standards. Officials should be held generally to be loyal to their employer and avoid conflicts of interest. They should undertake to observe the following rules: Confidential Information Officials must not disclose to any third party confidential or proprietary information, whether such disclosure is for direct personal gain, to benefit others or for any other purpose. Supplier Relationships 92
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Officials must avoid conflicts between their personal financial interests and their official duties. To that effect they, and their immediate family, must abstain from owning a debt or equity interest in a company supplying goods or services to their own agency or accepting to serve as a director or employee of such a company. Gifts and Entertainment Officials must not accept, directly or indirectly, any gift (including any gratuity, favour, entertainment, loan, or other considerations) with a value in excess of a certain amount of money (which should be set at a low level having regard to the overall situation in the country concerned) from any person or entity which has or seeks to obtain a contract with their own agency. Goods and Services Officials and their immediate families must not sell or supply goods and services to their own agency. Moral Conduct Procurement practitioners must exhibit highest degree of moral uprightness both at official work place and at home, He must be impartial, fair and firm. He must eschew all parochial interests when it comes to discharge of official assignments always placing the national interest above personal interest gains.
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