Agency asks suppliers to take an oath

The Defense Procurement Agency reported Sunday that beginning this month bidders for construction, supply and purchase contracts will be held to new standards of transparency.

The agency has established what it called a "Written Oath for Implementation of Integrity Pact" that states if the Fair Trade Commission or a prosecutor's office accuses a military supplier of setting unfair prices, offering bribes or other unethical practices the company must cooperate fully with the investigation, an agency official said.

"But it is not mandatory to submit the written oath immediately because it is only in the advisory stage now," he added.

According to the written oath, when a military supplier is accused by regulatory authorities of bribing military officials in order to secure a contract, the supplier cannot claim damages if it is found not guilty of the charge.

The written oath also requires that suppliers establish corporate regulations to root out improper business practices such as bribery, price collusion or kickbacks. The oath would also allow the agency to end a relationship with a supplier that it believes punishes workers who reveal unethical business practices publically. The agency official said military suppliers should revise their corporate regulations to protect employees who reveal improper business practices.

The agency is planning to target suppliers who have never signed a contract with the military before when a deal is signed. Long-time suppliers should turn in their oaths with their first bids of this year. In turn the agency will submit a written agreement guaranteeing that its representatives will not place any unethical or unreasonable requirements on the suppliers.

by Kim Min-seok