Public procurement without war sponsors: NACP welcomes CACU’s decision

23.08.2023

The National Agency on Corruption Prevention (NACP) welcomes the decision of the Commission of the Antimonopoly Committee of Ukraine (CACU) for consideration of complaints about violations of public procurement legislation to ban public procurement through the Prozorro system of products of companies listed as international war sponsors on the NACP portal "War and Sanctions". The decision of the CACU Tender Commission No. 13037-р/пк-пз of August 18, 2023 states that each customer, when announcing a tender, can independently decide whether it is ready to purchase products from companies that finance Russian aggression. This means that if the procuring entity specifies such requirements, the company will not be eligible to participate in the tender. "Products of honest businesses that do not cooperate with the aggressor country should be a priority in public procurement. The state cannot afford to purchase goods from companies that pay significant taxes to the Russian budget. This strengthens its ability to continue military aggression. The CACU’s decision will help customers who make purchases through the Prozorro system join the boycott of war sponsors," said NACP Head Oleksandr Novikov. It is worth noting that the Zolochiv Village Council of Kyiv Oblast became the first authority to include such a ban in its tender documentation. However, the applicant company, which planned to offer Hikvision products, which are included in the list of war sponsors, decided to challenge this requirement of the village council. The CACU sided with the procuring entity in its decision, resolving the issue in favor of Ukraine's interests. After all, the provisions of the Constitution of Ukraine are directly applicable, and its Article 3 stipulates that a person, his or her life and health, honor and dignity, inviolability, and security are recognized in Ukraine as the highest social value. Human rights and freedoms and their guarantees determine the content and focus of the state's activities. The state is accountable to the individual for its activities. Affirming and ensuring human rights and freedoms is the main duty of the state. The NACP calls on all customers, including state-owned enterprises, state authorities, and local governments, to make a conscious choice and refuse to buy goods from companies that finance the war against Ukraine by paying significant taxes to the Russian budget. We would like to remind you that the NACP is the body responsible for the compliance system in the private sector. During compliance procedures, counterparties are subject to integrity checks, including socially responsible business conduct in accordance with OECD standards. The list of “International War Sponsors” on the “War and Sanctions” portal is a powerful reputational tool for achieving the integrity of supply chains in the international dimension, the exit of international business from Russia, thus reducing the financial and technological ability of the terrorist country to kill Ukrainians. One of the “leverages” of the platform is cooperation with the World-Check database, which is used by banks and insurance companies for risk assessment. That is why for global companies, the consequences of being on the list become worse than continuing to do business with the aggressor country.