Argentine Anti-corruption Office: Compliance Guidelines for Public Procurement during the COVID- 19 Emergency

As we have pointed out in previous articles (see https://www.marval.com/publicacion/la-emergencia-incrementa-riesgos-de-compliance-anticorrupcion-13635&lang=en), the health emergency caused by the COVID- 19 has increased both anti-corruption compliance risks and reports on irregularities in the field of public procurement, especially in relation to essential supplies (e.g. food, face masks).

In this framework, on May 14, 2020 the Argentine Anti-corruption Office (the “OA” after its acronym in Spanish) issued some guidelines for the Argentine Federal Public Sector to implement. The implementation of those guidelines seek to strengthen integrity and transparency in public procurement caused by the COVID-19 emergency, in accordance with the provisions of Decree No. 260/2020 and its complementary regulations.

The OA mentions that emergency procurement proceedings should be exclusively limited to unpredictable situations that require a more rapid response than usual proceedings due to their urgency and seriousness.

In addition, the OA emphasizes the relevance and the necessity of complying with all rules and procedures that apply to public procurement (e.g. regulation on maximum prices and bidders’ conflict of interest). Additionally, the OA remarks on the importance of adopting good practices in the field of public procurement (e.g. use of Compr.ar system, disclosure of procurement information in an organized and centralized manner). All those actions will improve the follow-up by auditing entities and the accountability to citizens.

Furthermore, the OA mentions several initiatives related to anti-corruption compliance such as requesting suppliers to prove that they count with adequate integrity programs (if such programs are required according to the provisions of the Argentine Anti-corruption Law No. 27,401). The OA also suggests that both bidders and public officials who oversee procurement should sign integrity commitments.

The OA also stresses the benefits of implementing specific whistleblower channels to report irregularities, failures and risks that may affect the integrity of the emergency procurement. This will allow for speedier investigations.

The OA’s guidelines show different initiatives, mechanisms and procedures to increase transparency and integrity in public procurement with the private sector. Therefore, companies should pay special attention to such measures to adapt and improve their internal compliance policies, proceedings and protocols. This is particularly important when such companies take part in, or attempt to enter into such contracts with the Government.