UNFPA is committed to preventing, identifying and addressing all acts of fraud against UNFPA as well as third parties involved in UNFPA activities. To this effect UNFPA has developed its Anti-Fraud Policy with the aim to raise awareness of fraud risks, implement controls to prevent fraud, and establish a procedure applicable to detect of fraud and to enforce its Anti-Fraud Policy.
UNFPA requires that bidders, suppliers, and contractors and their subcontractors observe the highest standard of ethics during the procurement and execution of UNFPA contracts.
UNFPA defines, for the purposes of this provision, the terms set forth below as follows:
- Bribery is the act of unduly offering, giving, receiving or soliciting anything of value to influence the process of procuring goods or services, or executing contracts;
- Extortion or coercion is the act of attempting to influence the process of procuring goods or services, or executing contracts by means of threat of injury to person, property or reputation;
- Fraud is the misrepresentation of information or facts for the purpose of influencing the process of procuring goods or services, or executing the contracts, to the detriment of UNFPA or other participants;
- Collusion is the agreement between bidders designed to result in bids at artificial prices that are not competitive.
UNFPA will reject a proposal to award a contract if it determines that a vendor recommended for award has engaged in corrupt practices in competing for the contract in question.
UNFPA will declare a vendor ineligible, either indefinitely or for a stated period of time, to become a UN registered vendor if it at any time determines that the vendor has engaged in corrupt practices in competing for or in executing a UNFPA contract.
UNFPA will cancel or terminate a contract if it determines that a vendor has engaged in corrupt practices in competing for or in executing a UNFPA contract.
UNFPA will normally require a UNFPA vendor to allow UNFPA, or any person that UNFPA may designate, to inspect or carry out audits of the vendor’s accounting records and financial statements in connection with the contract.
Any vendor participating in UNFPA’s procurement activities, shall provide all required documents, records and other elements to UNFPA personnel upon first request in order to facilitate any investigation of allegations of misconduct by either vendors or any other party to the procurement activities. The absence of such cooperation may be sufficient grounds for the debarment of the vendor from UNFPA vendor roster and may lead to suspension following review by UNFPA.
Suppliers, their subsidiaries, agents, intermediaries and principals must cooperate with UNFPA’s Department of Oversight Services (DOS), as well as with any other investigations authorized by the Executive Director and with the UNFPA Ethics Officer as and when required. Such cooperation shall include, but not be limited to the following: access to all employees, representatives, agents and assignees of the vendor and production of all documents requested, including financial records. Failure to fully cooperate with investigations will be considered sufficient grounds to allow UNFPA to repudiate and terminate the contract, and to debar and remove the supplier from UNFPA’s list of registered suppliers.
A confidential Anti-Fraud Hotline is available to any bidder in order to report suspicious fraudulent activities at http://www.unfpa.org/help/hotline.cfm.
UNFPA has adopted a zero tolerance policy on gifts and hospitality. In view of this, UNFPA personnel are prohibited from accepting any gift, even of a nominal value, including drinks, meals, food products, hospitality, calendars, transportation, and/or any other forms of benefits. Vendors are therefore requested not to send gifts or offer hospitality to UNFPA personnel.
Supplier Code of Conduct
The “United Nations Supplier Code of Conduct” promulgated by the United Nations Procurement Division in May 2007, or as revised thereafter, is fully endorsed by UNFPA. UNFPA expects that all suppliers who wish to do business with UNFPA will embrace this code of conduct.
- UN Supplier Code of Conduct - English
- UN Supplier Code of Conduct - French
- UN Supplier Code of Conduct - Spanish
- UN Supplier Code of Conduct - Arabic
UNFPA will communicate to suppliers during the registration phase, in the bidding documents and in the contract documents that all UNFPA suppliers shall adhere to the highest ethical standards, both during the bidding process and throughout the execution of a contract.
Extreme cases of unethical behaviour by suppliers involves corrupt practices. Examples of common types of corrupt practices among suppliers are:
- “Corrupt practice” means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence improperly the actions of a public official;
- “Fraudulent practice” means any act or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit, or to avoid an obligation;
- “Collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party;
- “Coercive practice” means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.
- Reject a proposal to award a contract if the Chief, PSB determines that a supplier recommended for award has engaged in corrupt practices in conducting business with UNFPA;
- Declare a supplier ineligible, either indefinitely or for a stated period of time, to be a UNFPA registered supplier if the Chief, PSB at any time determines that the supplier has engaged in corrupt practices in competing for or in executing a UNFPA contract;
- Cancel or terminate a contract if the Chief, PSB determines that a supplier has engaged in corrupt practices in competing for or in executing a UNFPA contract.
Determinations by the Chief, PSB pursuant to paragraphs 1) to 3) above will be made following consultation with the UNFPA Legal Unit, as appropriate. All UNFPA staff who have reasonable grounds to suspect that a supplier has engaged in corrupt practices shall promptly report that information to the UNFPA Division for Oversight Services (DOS) and to the Chief, PSB. The Chief, PSB shall keep such information confidential until s/he has consulted with DOS.
- Require a UNFPA supplier to allow UNFPA, or any person that UNFPA may designate, to inspect or carry out audits of the supplier’s accounting records and financial statements in connection with the contract, as provided for under the terms of the relevant procurement contract;
- Refer the issue to the national authorities through the UNFPA Legal Unit.