Supplier Code of Conduct
The United Nations Security Council Resolution (SCR) 1483 (2003) transferred
the responsibility for the Oil for Food Programme to the Coalition Provisional
Authority. Further, it requires that the Development Fund for Iraq (DFI) be used
in a “transparent manner” to meet the humanitarian needs of the Iraqi people. In
order to meet the obligations of SCR 1483, the Oil for Food Coordination Center
is publishing rules of conduct applicable to suppliers with existing,
unperformed obligations arising from written agreements classified as approved,
funded and prioritized Oil for Food contracts. The Coordination Center will
continue to support the Oil for Food Programme through 30 June 2004. After that
date, the Ministries will assume control of the program but will be advised to
adopt similar ethical tenets for all business transactions. Further information
as to how the transition of responsibility from the Coordination Center to the
Ministries will affect the suppliers will be published as it is received.
In general, all suppliers are expected to deal fairly and honestly with the Oil for Food Coordination Center and Ministry representatives. In particular, all suppliers must:
(1) supply goods at the lowest price each supplier is willing to accept for any necessary adjustments (upward) or downward in the total contract value by taking into account all amendments (and their associated costs) to a particular contract;
(2) fulfill the terms and conditions of the contract;
(3) responsively provide delivery of the goods as specified in the original contract (if not addressed in an amendment or in the most recent contract amendment); and
(4) adhere to any promises to provide installation and/or after sales service or maintenance of any delivered goods requiring such attention under the contract terms.
Suppliers will not contact the independent inspection agent for any reason, unless specifically directed to by the Oil for Food Coordination Center. Any contact with an Oil for Food Coordination Center or Ministry representative, initiated by the supplier, may not include any attempt to influence the representative to act favorably toward the supplier whether the attempt is made by:
(2) an exchange of an item(s) of any value (nominal or otherwise) in return for favorable treatment (this includes secret “commissions” and/or kickbacks);
(3) threat of harm (physical or otherwise) directed at the representative, or the representative’s coworkers, family members, or friends;
(4) a third party on behalf of a supplier;
(5) an offer for a work position or sales opportunity with the supplier’s company or the supplier’s associates.
Suppliers will not attempt to engage in any fraudulent practices to receive favorable treatment of their contract(s). This list of practices may include, but does not exclusively include:
(1) forging letter of credits to insert unapproved amendments;
(2) including in e-mails false information regarding agreements made with respect to a supplier’s contract(s); and
(3) attempting to call or personally contact anyone in the Coordination Center to provide false information to effect changes in a supplier’s contract(s).
Any colorable evidence of violations of any of the above provisions, or other attempts to unduly influence Coordination Center and/or Ministry representatives, allows the Oil for Food Coordination Center and/or Ministry representatives to avail itself of any and every remedy in law or equity, or as agreed to by the parties in any contract. These remedies include but are not limited to:
(1) declaring the contract(s)* discharged by nonperformance;
(2) anticipatorily repudiating the balance of the unperformed obligations under a contract;
(3) declaring the supplier in material breach of the contract;
(4) barring the supplier from consideration for future contracts.
*If the supplier has more than one contract under the Oil for Food Program, all contracts will be considered eligible for discharge by nonperformance.