Requirements

1. Responsibility for anti-corruption management of the Project:  The Project Owner should, in accordance with the requirements of this PACS Standard:
   1. have overall responsibility for the anti-corruption management of the Project
   2. design and implement the Project Procedures (paragraph 2 below)
   3. ensure that the Anti-Corruption Obligations (paragraph 3 below) are complied with in relation to the Project by the Project Owner, Suppliers, and Sub-suppliers, and the personnel of each of these bodies.
2. Project Procedures:  The Project Procedures should be written anti-corruption procedures in relation to the management of the Project which:
   1. comply with relevant anti-corruption laws and regulations
   2. incorporate the requirements of PACS Standards 1 to 15
   3. have the purpose of preventing corruption in relation to the Project and dealing appropriately with any corruption which occurs.
   4. (Note:  In the event of any conflict between relevant anti-corruption laws and regulations and the requirements specified in PACS Standards 1 to 15, then the relevant anti-corruption laws and regulations should prevail.)
3. Anti-Corruption Obligations:  The Anti-Corruption Obligations comprise:
   1. relevant anti-corruption laws and regulations
   2. the Project Procedures (paragraph 2 above)
   3. the Anti-Corruption Contractual Commitments (PACS Standard 4)
   4. the Project Code of Conduct (PACS Standard 8).
4. Top management responsibility:  The top management of the Project Owner (i.e. the managing board or equivalent) should have the following responsibilities:
   1. Overall responsibility:  have overall responsibility for ensuring that the Project Owner’s obligations in paragraph 1 above are effectively carried out
   2. Allocation of responsibilities to managers:  allocate specific responsibilities for carrying out the Project Owner’s obligations in paragraph 1 above to appropriate managers
   3. Communication:  communicate, at commencement of the Project, and at least every six months for the duration of the Project, the necessity and importance of compliance with the Anti-Corruption Obligations to all relevant individuals and organisations involved in the Project
   4. Public statement:  issue, at commencement of the Project, and maintain for the duration of the Project, a public statement on the Project Owner’s website that corruption in relation to the Project is prohibited and will be appropriately prevented and dealt with by the Project Owner
   5. Reviewing reports:  review, as and when they are received:
      1. reports as to improvements required to the Project Procedures received from the compliance manager (paragraph 5 below)
      2. reports as to suspected corruption and breach of the Anti-Corruption Obligations received from the compliance manager (paragraph 5 below), the independent monitor (PACS Standard 11), the independent auditor(s) (PACS Standard 12), or from Project participants or the public (PACS Standard 13)
   6. Investigation and enforcement:  ensure that reports as to suspected corruption and breach of the Anti-Corruption Obligations are investigated in accordance with PACS Standard 13, and that appropriate enforcement action is taken in accordance with PACS Standard 14
   7. Informing monitor: ensure that the independent monitor (PACS Standard 11) is kept informed of any such reports, investigation and enforcement action
   8. Implement improvements:  ensure the prompt implementation of improvements to the Project Procedures where such improvements are necessary or appropriate.
5. Project compliance manager:  A senior manager of the Project Owner should be designated as Project compliance manager with responsibility for the following actions:
   1. Oversight:  overseeing on a continuing basis:
      1. the design and implementation of the Project Procedures
      2. whether the Anti-Corruption Obligations are being complied with
   2. Assessment:  assessing on a continuing basis whether the Project Procedures give effect to relevant anti-corruption laws and regulations and to PACS Standards 1 to 15, and are effective in preventing corruption in relation to the Project and in dealing appropriately with any corruption which occurs, and, if not, identifying the improvements required
   3. Reporting failures and improvements:  reporting, as soon as possible, the following to top management (paragraph 4 above) and to the independent monitor (PACS Standard 11):
      1. any failure by the Project Owner or its personnel to design and implement the Project Procedures
      2. suspected breaches of the Anti-Corruption Obligations
      3. suspected corruption in relation to the Project
      4. improvements to the Project Procedures which have been identified as necessary
   4. Routine reports:  providing, at least once every three months, to top management (paragraph 4 above) and to the independent monitor (PACS Standard 11), a summary of the ongoing effectiveness of the design and implementation of the Project Procedures.
6. Managers:  In relation to each Project function or process which they manage, the Project Owner’s managers should ensure that:
   1. the Anti-Corruption Obligations are complied with in relation to such function or process by the managers, the Project Owner, relevant Suppliers and Sub-suppliers, and the personnel of each of these bodies
   2. they are alert to any suspicions of corruption or breach of the Anti-Corruption Obligations, and they report any such suspicions, as soon as possible:
      1. to the compliance manager, and/or
      2. under the reporting system in PACS Standard 13.
7. Risk Assessment:  The Project Owner should undertake periodic corruption risk assessments as follows:
   1. Initial risk assessment:  Prior to selecting a Project under PACS Standard 2, the Project Owner should undertake an initial assessment of the risk of corruption in relation to the proposed Project, and assess whether the Project Procedures would be adequate to reduce those risks to an acceptable level. 
   2. Ongoing risk assessment:  For the duration of the Project, the Project Owner should at least annually, and in the event of any material change to the Project structure or circumstances, re-assess the risk of corruption in relation to the Project, and assess whether the Project Procedures are adequate to reduce those risks to an acceptable level. 
   3. Matters to be assessed: The matters which should be assessed by the Project Owner under the initial and ongoing risk assessments include:
      1. the specific types of corruption which could occur (e.g. bribery, extortion, fraud, cartels, abuse of office, embezzlement, money laundering)
      2. the specific corruption risks posed by or in relation to the different categories of potential or actual participant in the Project (e.g. public officials, the Project Owner, Suppliers, Sub-suppliers, and the personnel of each of these bodies)
      3. the different phases in the Project where these types of corruption could occur (e.g. Project selection, design, procurement, contract execution)
      4. the likelihood of these different types of corruption occurring
      5. the potential impact on the Project Owner, the Project and the public of each type of corruption occurring.
   4. Due diligence:
      1. As part of the initial and ongoing risk assessments, the Project Owner should undertake such further enquiries (due diligence) as are appropriate in order to learn more about the matters being assessed, and the possible specific corruption risks they may pose.
      2. Due diligence on potential Suppliers should be undertaken as part of the procurement process in accordance with paragraph 9 of PACS Standard 3.
   5. Managing inadequacy of the Project Procedures:  Where any of the initial and ongoing risk assessments establish that the Project Procedures are not adequate to reduce any specific corruption risks to an acceptable level, the Project Owner should enhance the Project Procedures or take other appropriate steps (such as changing the nature or contractual structure of the Project) to enable the Project Owner to reduce the corruption risks to an acceptable level.
   6. “Acceptable level” of corruption risk:  For the purposes of the initial and ongoing risk assessments, an “acceptable level” of corruption risk means that, on the assumption that the Project Procedures have been effectively implemented, it is reasonable to believe that the relevant assessed corruption risk is unlikely to occur.
8. Resources:  The Project Owner should provide sufficient resources to enable it effectively to comply with its obligations in PACS Standards 1 to 15.
9. Employment procedures:
   1. In relation to all of the Project Owner’s personnel involved in the Project:
      1. conditions of employment should require personnel to comply with:
         1. applicable anti-corruption laws and regulations
         2. the Project Code of Conduct
         3. relevant Project Procedures
      2. disciplinary procedures should entitle the Project Owner to take appropriate disciplinary action against any personnel who breach their conditions of employment.
   2. In relation to all of the Project Owner’s personnel positions in relation to the Project which are exposed to more than a low corruption risk:
      1. personnel should be vetted before they are employed in or transferred or promoted to such positions to ascertain as far as is reasonable that it is appropriate to employ or redeploy them, and that it is reasonable to believe that they will comply with their conditions of employment
      2. personnel should declare any conflict of interest
      3. personnel should have the necessary competence to undertake the responsibilities entrusted to them, based on their experience and/or training
      4. performance bonuses, performance targets, and other incentivising elements of remuneration should be reviewed periodically to verify that there are reasonable safeguards to prevent these bonuses, targets or elements from encouraging corruption.
10. No conflict of interest:
    1. No manager of the Project Owner should participate in any activity, or make any decision, in respect of which that manager has a potential or actual conflict of interest.
    2. All potential or actual conflicts of interest should be declared by managers and recorded on a register maintained by the Project Owner.
11. Decisions:  The following is applicable to any decision in relation to the Project made by or on behalf of the Project Owner:
    1. Separation of functions:  In relation to any Project Contract:
       1. All transactions:  the same person, or persons from the same department, should not make more than one of the following decisions:
          1. selecting the Supplier
          2. approving the Supplier’s performance
          3. approving payment to the Supplier
       2. High value transactions:  in cases of high value transactions where there is potential for significant loss caused by corruption, the same person should not make more than one of the following decisions, and the persons making these decisions should come from at least three different departments:
          1. agreeing the need for works, equipment, materials, products, services or finance (including the initial need or the need arising under modifications to or under a Project Contract)
          2. selecting the Supplier
          3. approving the Supplier’s performance
          4. recommending payment to the Supplier
          5. approving payment to the Supplier
          6. making payment to the Supplier.
    2. Number, skill and seniority of decision-makers:
       1. Decisions should be made by a person(s) of a number, skill and seniority which is appropriate to the value and corruption risk of the relevant activity.
       2. Decisions relating to activities above a reasonable value threshold, or which carry more than a low corruption risk, should be made by more than one appropriate person.  
       3. In the case of activities of high value or high corruption risk, the decision of top management should be required.
12. Communications and dealings:
    1. The Project Owner should promptly communicate all necessary information, notices, and decisions to Suppliers.
    2. All communications and dealings by the Project Owner with Suppliers should:
       1. be only as necessary for the legitimate purposes of the Project
       2. ensure fair treatment of all Suppliers.
13. Records:
    1. All of the Project Owner’s procedures, actions, decisions and communications in relation to the Project and their outcomes should be recorded in writing. If initially made orally, they should as soon as possible be confirmed in writing.
    2. Records of procedures should state the purpose of the procedures and specify all material steps and requirements involved in the procedures.
    3. Records of actions, decisions, communications and outcomes should:
       1. state all material information, including the underlying facts, the reasons for the action, decision, communication or outcome, and the procedures and evidence on which it was based
       2. be signed by the person(s) taking the action, giving the decision, making the communication, or achieving the outcome
       3. record the date of the action, decision, communication, or outcome.
    4. All Project records should be securely stored and retained by the Project Owner for at least the relevant legal limitation period for prosecuting corruption offences, so that such records are, as far as possible, available for any future prosecution.  In cases where there is a risk of corruption and where there is no limitation period for corruption offences, records should be retained indefinitely or for as long as practicable.
14. Specific anti-corruption measures:  The Project Owner should implement the following specific anti-corruption measures in relation to the Project:
    1. controls over Project selection, design and land acquisition should be implemented in accordance with PACS Standard 2
    2. procurement controls should be implemented in accordance with PACS Standard 3
    3. provisions should be included in Project Contracts in accordance with PACS Standard 4
    4. contract management controls should be implemented in accordance with PACS Standard 5
    5. financial management controls should be implemented in accordance with PACS Standard 6
    6. Major Suppliers and Major Sub-suppliers should be required to implement an anti-corruption management system and appoint a compliance manager in accordance with PACS Standard 7
    7. the Project Owner, all Suppliers, all Sub-suppliers, and all of their personnel should be required to comply with the Project Code of Conduct in accordance with PACS Standard 8
    8. all relevant personnel of the Project Owner, Suppliers and Sub-suppliers should receive appropriate anti-corruption training in accordance with PACS Standard 9
    9. the Project Owner should facilitate the obtaining of government permits by Suppliers and Sub-suppliers in accordance with PACS Standard 10
    10. the Project should be independently monitored in accordance with PACS Standard 11
    11. the Project should be independently audited in accordance with PACS Standard 12
    12. a system should be provided which enables the reporting of corruption and breach of the Anti-Corruption Obligations, and all reported matters should be appropriately investigated, in accordance with PACS Standard 13
    13. in relation to any actual corruption, or breach of the Anti-Corruption Obligations, appropriate enforcement action should be taken in accordance with PACS Standard 14
    14. information in relation to the Project should be promptly published on a freely accessible public website in accordance with PACS Standard 15.