Establishment of a Panel of Professional Service Providers (psp’s) - Gauteng -

Returnable Documents:

This agreement is part of the tender document, which shall be signed and submitted along with the tender document. The Chief Executive Officer of the bidding company or his/her authorised representative shall sign the integrity pact. If the winning bidder has not signed this integrity pact during the submission of the bid, the tender/proposal shall be disqualified. 2. OBJECTIVES Now, therefore, the Gauteng Provincial Government and the Bidder agree to enter into this pre-contract agreement, hereinafter referred to as an integrity pact, to avoid all forms of corruption by following a system that is fair, transparent, and free from any influence/unprejudiced dealings before, during and after the currency of the contract to be entered, with a view to: 2.1 Enable the Gauteng Provincial Government to obtain the desired contract at a reasonable and competitive price in conformity to the defined specifications of the works, goods and services; and 2.2 Enable bidders to abstain from bribing or any corrupt practice to secure the contract by assuring them that their competitors will refrain from bribing and other corrupt practices and the Gauteng Provincial Government will commit to preventing corruption, in any form by their officials by following transparent procedures. 3. GOVERNANCE 3.1 The integrity pact seeks to ensure that both parties comply with all applicable provincial, national, continental, and international laws and regulations regarding fair competition and anti- corruption. 4. ENVIRONMENT 4.1 The integrity pact requires that both parties comply with all applicable environmental, health, and safety regulations. Page | 24 5. PROTECTION OF INFORMATION 5.1 The integrity pact seeks to ensure that both parties undertake to protect the confidentiality of information. Each party, when given access to confidential information as part of the business relationship should not share this information with anyone unless authorised. 6. REPUTATION 6.1 The Gauteng Provincial Government wants to work with bidders who are proud of their reputation for fair dealing and quality delivery. 6.2 The Gauteng Provincial Government wants to ensure that working with government is reputation enhancing for the supplier. 6.3 The Gauteng Provincial Government expects bidders/suppliers to be protective of government’s reputation, and ensure that neither they, nor any of their partners or subcontractors, bring government to disrepute by engaging in any act or omission which is reasonably likely to diminish the trust that the public places in government. 6.4 The Gauteng Provincial Government further requires its bidders/suppliers to always adhere to ethical conduct even outside their contractual obligation with the Gauteng Provincial Government. 7. VALUES OF THE GAUTENG PROVINCIAL GOVERNMENT 7.1 The value system of the Gauteng City Region is shown below: GAUTENG CITY REGION VALUES SYSTEM CORE VALUES ETHICAL VALUES Patriotism Integrity Purposefulness Accountability Team focused Dignity Integrity Transparency Accountability Respect Passionate Honesty Activism 7.2 The Gauteng Provincial Government commits to ensure that the values system is embedded into the day-to-day operations of its institutions. 8. COMMITMENTS OF THE GAUTENG PROVINCIAL GOVERNMENT Page | 25 The Gauteng Provincial Government commits itself to the following: 8.1 The GPG commits that its officials will at all times conduct themselves in accordance with Treasury Regulations 16A.81, copy of which is attached marked Annexure A, and that: 8.1.1 The GPG is committed to doing business with integrity and proper regard for ethical business practices. 8.1.2 The GPG hereby undertakes that no official of the GPG, connected directly or indirectly with the contract will demand, take a promise for or accept, directly or through intermediaries, any bribe, consideration, gift, reward, favour, or any material or immaterial benefit or any other advantage from the bidder, either for themselves or for any person, organisation or third party related to the contract in exchange for an advantage in the bidding process, bid evaluation, contracting or implementation process related to the contract. 8.1.3 The GPG further confirms that its officials have not favoured any prospective bidder in any form that could afford an undue advantage to that bidder during the tendering stage and will further treat all bidders alike. 8.1.4 The GPG will during the tender process treat all Bidder(s) with equity. 8.1.5 All officials of the GPG shall report any attempted or completed violation of clauses to the following details: Gauteng Ethics Hotline National Anti-Corruption Hotline Toll-free number 080 1111 633 0800 701 701 SMS call-back 49017 N/A E-mail gpethics@behonest.co.za nach@psc.gov.za Fax 086 726 1681 0800 204 965 Website www.thehotline.co.za www.publicservicecorruptionhotline.org.za 1 Government Notice No. R. published under Government Gazette No. March 2005, as amended Page | 26 Post Chief Directorate: Integrity Public Service Commission Management Private X121 Private Bag X61 Pretoria Marshalltown 0001 2001 Walk-in Office of the Premier Gauteng Provincial Office 55 Marshall Street Public Service Commission Marshalltown Schreiner Chambers 6th Floor Johannesburg 94 Pritchard Street 2001 Johannesburg 8.1.6 Following the report on the violation of the above clauses by the official(s), through any source, the GPG shall investigate allegations of such violations against the official or other role players and when justified: a) Take steps against such official and other role players (necessary disciplinary proceedings, and/or any other action as deemed fit, bar such officials from further dealings related to the contract process). In such a case, while an enquiry is being conducted by the Gauteng Provincial Government the proceedings under the contract would not be stalled. b) Inform the relevant Treasury of steps taken in 8.1.5(a) against such officials; and c) Report any conduct by such official and other role players that may constitute an offence to the South African Police Service. 9. COMMITMENTS OF THE BIDDERS The bidder commits himself/herself to take all measures necessary to prevent corrupt practices, unfair means and illegal activities during any stage of his/her bid or during any pre- contract or post contract stage to secure the contract or in furtherance to secure it and commits himself/herself to the following: 9.1 The bidder is committed to doing business with integrity and proper regard for ethical business practices. 9.2 The bidder will not offer, directly or through intermediaries, any bribe, gift, consideration, reward, favour, any material or immaterial benefit or other advantage, commission, fees, brokerage or inducements to any official of the Gauteng Provincial Government, connected directly or indirectly with the bidding process, or to any person, organisation or third party related to the contract in exchange for any advantage in the bidding, evaluation, contracting and implementation of the contract. 9.3 The bidder further undertakes that he/she has not given, offered or promised to give, directly or indirectly any bribe, gift, consideration, reward, favour, any material or immaterial benefit or other advantage, commission, fees, brokerage or inducements to an official of the Gauteng Page | 27 Provincial Government or otherwise in procuring the contract or forbearing to do or having done any act in relation to the obtaining or execution of the contract or any other contract with the Gauteng Provincial Government for showing or forbearing to show favour or disfavor to any person in relation to the contract or any other contract with the Gauteng Provincial Government. 9.4 The bidder will not collude with other parties interested in the contract to preclude the competitive bid price, impair the transparency, fairness and progress of the bidding process, bid evaluation, contracting and implementation of the contract. 9.5 The Bidder(s)/Contractor(s) will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness or to introduce cartelization in the bidding process. 9.6 The Bidder(s)/Contractor(s) will, when presenting his / her bid, disclose any and all payments he /she has made, is committed to or intends to make to agents, brokers or any other intermediaries in connection with the award of the contract. 9.7 In case of sub–contracting, the Principal Contractor shall take the responsibility of adoption of Integrity Pact by the Sub-Contractor. 9.8 The bidder shall report any attempted or completed violation of clauses 9.1 to 9.7 including any alleged unethical conduct to the Gauteng Ethics Hotline (details are provided at clause 8.1.4). 9.9 The bidder (or anyone acting on its behalf) warrants that: 9.9.1 It has not been convicted by a court of law for fraud and/or corruption with respect to the procurement/tendering processes; and/or 9.9.2 It has not been convicted by a court of law for theft or extortion; and/or 9.9.3 It is not listed on the National Treasury’s database of Restricted Suppliers or Register of Tender Defaulters. 10. SANCTIONS FOR VIOLATION 10.1 The breach of any aforesaid provisions or providing false information by employers, including manipulation of information by evaluators, shall face administrative charges and penal actions as per the existing relevant rules and laws. Page | 28 10.2 The breach of the Pact or providing false information by the Bidder, or any one employed by him, or acting on his behalf (whether without the knowledge of the Bidder), or acting on his/her behalf, shall be dealt with as per the provisions of the Prevention and Combating of Corrupt Activities Act (). 10.3 The Gauteng Provincial Government shall also take all or any one of the following actions, wherever required: • To immediately call off the pre-contract negotiations without giving any compensation to the bidder. However, the proceedings with the other bidder(s) would continue. • To immediately cancel the contract, if already awarded/signed, without giving any compensation to the bidder. • To recover all sums already paid by the Gauteng Provincial Government. • To cancel all or any other contracts with the bidders and GPG shall be entitled to demand and recover from the Contractor liquidated damages of the Contract value. • To submit the details of the bidder to the National Treasury to register on the database for tender defaulters. 11. CONFLICT OF INTEREST 11.1 A conflict of interest involves a conflict between the public duty and private interest (for favor or vengeance) of a public official, in which the public official has private interest which could improperly influence the performance of their official duties and responsibilities. Conflicts of interest would arise in a situation when any concerned members of both parties are related either directly or indirectly, or has any association or had any confrontation. Thus, conflict of interest of any tender committee must be declared in a prescribed form. 11.2 The bidder shall not lend or borrow any money from or enter any monetary dealings or transactions, directly or indirectly, with any member of the tender committee or officials of the Gauteng Provincial Government, and if he/she does so, the Gauteng Provincial Government shall be entitled forthwith to rescind the contract and all other contracts with the bidder. 12. LEGAL ACTIONS 12.1 The actions stipulated in this Integrity Pact are without prejudice to any other legal action that may follow in accordance with the provisions of the extant law in force relating to any civil or criminal proceedings. Page | 29 13. VALIDITY 13.1 The validity of this Integrity Pact shall cover the tender process and extend until the completion of the contract to the satisfaction of both the Gauteng Provincial Government and the bidder (service provider). 13.2 Should one or several provisions of the Pact turn out to be invalid; the remainder of this Pact remains valid. In this case, the parties will strive to come to an agreement to their original intentions. GPG INTEGRITY PACT FOR BUSINESSES BIDDER/SUPPLIER/SERVICE PROVIDER Signature of the CEO Full name of the CEO Tender number Date Page | 30

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