A/HRC/44/43 Procurement reform 36. Methods exist to reform public procurement to more fully implement human rights obligations alongside anti-corruption obligations. The Working Group has recommended that human rights be integrated into guidance materials on public procurement and criteria for awarding contracts. Guidance should include steps required to conduct risk assessments and adopt appropriate measures at each stage of the procurement process.78 All States should require businesses to respect human rights. The Working Group has observed that companies will often lose their right to participate in government procurement exercises if it is determined that they have engaged in bribery, and it recommended that a similar approach be explored with regard to human rights-related complaints.79 Relevant information about convictions for corruption, and possibly human rights abuses, should be made available to contracting authorities to inform decisions on whether to suspend or exclude bidders. 37. Corruption in public procurement is still a major issue, but States have made progress in addressing it, for example through the Agreement on Government Procurement, a plurilateral agreement within the WTO framework. However, in terms of having a consistent approach to human rights in the context of public procurement, the international community is lagging behind. Having a consistent approach would help prevent harm to people and the economy. 38. A number of good practices were reflected in the contributions. One example is revising codes of conduct for suppliers, such that suppliers that tender for public procurement must comply with all applicable human rights and anti-corruption laws and must ensure that their own suppliers have robust processes to ensure that subcontractors in their supply chain comply with these laws.80 Another is simplifying and digitalizing public procurement processes through e-procurement, which would improve efficiency. This could remove opportunities for companies to bribe public officials to circumvent bureaucratic requirements by eliminating the use of discretion by public officials. Such digitalization would also aid corruption detection by providing audit trails. 81 The Partnering Against Corruption Initiative has considered how technologies such as blockchain-based procurement systems can assist. The Trafficking Victims Protection Reauthorization Act in the United States requires government agencies to work with corporations to ensure that their supply chains are free of materials produced using trafficked labour and that businesses do not contribute to trafficking linked to sexual exploitation. Ensuring compliance with the related Executive Order means that certain contractors and their subcontractors must have due diligence plans to prevent such trafficking, effectively requiring contractors to ensure that human rights due diligence is conducted within their supply chain. 39. Integrity pacts,82 in which a contracting authority and bidders agree to comply with best practice and maximum transparency, and a third party, often a civil society organization, monitors the procurement process against those commitments,83 are key. They have been used in multiple government contracts, including engineering, architectural and consultancy contracts, State permits, licences and concessions, and in governmentregulated sectors, supply contracts and construction contracts. A civil society organization or another independent monitor ensures the proper completion of projects and the legitimacy of bidding processes. Monitors can receive reports of potential unfair practices. Integrity pacts have been used by States in many regions. A chapter of Transparency International in Mexico has monitored over 100 contracts. Integrity pacts could be extended to include a commitment by bidding companies to respect human rights. 78 79 80 81 82 83 12 A/74/198, para. 86 (k). A/HRC/38/48, para. 84. See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_ data/file/779660/20190220-Supplier_Code_of_Conduct.pdf. See www.oecd.org/gov/ethics/Corruption-Public-Procurement-Brochure.pdf. See https://ec.europa.eu/regional_policy/en/policy/how/improving-investment/integrity-pacts/. See www.transparency.org/whatwedo/tools/integrity_pacts/5.