Integrity Policy

1. Basis, Purpose and Scope of Application

1.1. This Integrity Policy is issued pursuant to:

(a) Section 3.2(f) of the Compact, which provides that the Government will fully comply with the Program Guidelines, as applicable, in its implementation of the Program;
(b) MCC Policy on Preventing, Detecting and Remediating Fraud and Corruption in MCC Operations;
(c) MCC Program Procurement Guidelines;
(d) Section 1, Article XI of the Philippine Constitution;
(e) Republic Act No. 6713, otherwise known as the Code of Conduct and Ethical Standards for Public Officials and Employees;
(f) Republic Act No. 10149, otherwise known as the GOCC Governance Act of 2011.

1.2. The purpose of this Integrity Policy is to (a) promote ethical conduct among Employees and Vendors, and (b) protect MCA-P against unethical conduct by Employees, Vendors and Other Persons.

1.3. This Integrity Policy applies to (a) Employees and (b) MCA-P conduct with respect to Vendors and Other Persons.

2. Definitions

As used in this document:

(a) “Compact” refers to the Millennium Challenge Compact, signed on September 23, 2010, between the Government and the government of the United States of America, acting through MCC.
(b) “Employee” refers to an employee of MCA-P.
(c) “Government” refers to the government of the Republic of the Philippines.
(d) “MCA-P” refers to Millennium Challenge Account-Philippines, the Philippine government corporation designated as the entity accountable for the implementation of the Program.
(e) “MCC” refers to the Millennium Challenge Corporation, a United States government corporation.
(f) “Other Person” refers to a person, other than an Employee or a Vendor, who receives MCC funds under the Compact or who uses or has custody of Compact assets.
(g) “Program Implementation Agreement” refers to the Program Implementation Agreement dated May 9, 2011 among MCA-P, MCC and the Government.
(h) “Vendor”, as the term is defined in the Program Implementation Agreement, refers to a natural person or legal person providing or performing MCC Funded Goods and Services (as the term is defined in the Program Implementation Agreement), and includes, but is not limited to, MCA-P’s contractors and consultants, subcontractors and sub-consultants, and their respective employees.

3. Principles

3.1. MCA-P’s vision is to be a global Millennium Challenge Account model, demonstrating replicable best practices in the implementation of sustainable projects by professionals with proven competence and integrity, contributing to economic growth for the upliftment of the lives of the Filipino people.
3.2. Fraud and corruption diminish benefits to intended recipients and impede economic growth and poverty reduction. (MCC Policy on Preventing, Detecting and Remediating Fraud and Corruption in MCC Operations)
3.3. Public office is a public trust. Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives. (Section 1, Article XI of the Philippine Constitution)

4. Policies

4.1. Develop best practices for ethical conduct

• Adopt, to the greatest extent possible, lessons learned and best practices from the Government, MCC, Accountable Entities in other countries, other official development assistance institutions, and civil society.
• Share lessons learned and best practices with the Government, MCC, Accountable Entities in other countries, other official development assistance institutions, and civil society.

4.2. Maintain transparency in MCA-P actions

• Ensure that documents and information that are relevant to the general public are immediately available on the MCA-P website.

4.3. Promote ethical conduct among Employees

• Develop clear guidelines on ethical conduct by Employees, including guidelines in the MCA-P Employee Handbook and Code of Conduct and MCA-P employment agreements with respect to confidentiality, conflicts of interest, gifts, and misuse of Compact assets.
• Provide trainings to Employees in order to promote ethical conduct and to ensure a proper understanding of MCA-P and MCC ethics guidelines.

4.4. Promote ethical conduct among Vendors and Other Persons

• Highlight to Vendors and Other Persons the provisions of the MCC Program Procurement Guidelines on coercive, collusive, corrupt, fraudulent, obstructive, or prohibited practices in competing for contracts funded under the Compact and in performing obligations under said contracts.
• Encourage Vendors to sign the Integrity Pledge.
• Maintain close oversight and monitoring of contract implementation by Vendors and project implementation by Other Persons.
• Recognize Employees who have been effective in promoting ethical conduct among Vendors and Other Persons.

4.5. Protect MCA-P against unethical conduct by Employees, Vendors and Other Persons

Prevention and detection

• Safeguard the confidentiality of confidential MCA-P information.
• Ensure that potential or actual conflicts of interest involving Employees are immediately disclosed by Employees and acted upon by MCA-P.
• Maintain a system for receiving and promptly acting on reports of unethical conduct by Employees, Vendors and Other Persons.
• Encourage all persons, including the general public, to report any possible unethical conduct by Employees, Vendors and Other Persons.
• Provide the information and cooperation required for the audits or investigations by MCC, the Office of the Inspector General for MCC, or the US Government Accountability Office.
• Conduct periodic review of approval thresholds by Employees at stages of the procurement and contract implementation process.

Remediation

• Aggressively take action against Vendors that have engaged in coercive, collusive, corrupt, fraudulent, obstructive, or prohibited practices in competing for contracts funded under the Compact or in performing their obligations under said contracts, including, but not limited to: (i) rejection of their bids, (ii) imposition of sanctions, (iii) cancellation of MCC funding for their contracts, and (iv) declaration of a misprocurement.
• Aggressively take action against Employees who have engaged in unethical conduct, including, but not limited to: (i) imposition of administrative penalties, and (ii) filing of criminal or civil cases.