Ethics and anti-corruption rules for defence contractors in Poland

Ethics and anti-corruption

When and how may former government employees take up appointments in the private sector and vice versa?

According to the Act of 21 August 1997 regarding Limitation of Conducting Business by Persons Exercising Public Functions, governmental employees may not hold positions in companies if they took part in the issuance of a decision regarding a company’s rights within one year from the issuance of the decision. Pursuant to the draft Transparency Act referred to in question 20 above, this limit may be increased up to three years.

Also, based on the Act of 11 September 2003 on Professional Military Service, soldiers who within three years before leaving the service participated in the preparation of procurement proceedings for defence articles are prohibited from working for contractors manufacturing or trading in such defence articles for a period of three years following the end of service.

Both of the above limitations are replicated in defence procurement contracts.

Moreover, in proceedings conducted under the PPL and Decision 367, a contractor that took part directly in the preparation of procurement proceedings or, in the preparation of an offer, used a person who participated in preparing the proceedings, must be excluded from further proceedings. In proceedings subject to the PPL, the exclusion is not mandatory if the distortion of competition caused by this situation may be eliminated in a different way.

How is domestic and foreign corruption addressed and what requirements are placed on contractors?

Both domestic and foreign corruption practices (based on the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions) are penalised in Poland. Moreover, contractors sentenced (including persons holding management or supervisory positions) by a final judgment for corruption must be excluded from procurement proceedings.

Also, in proceedings conducted within the framework of Decision 367, the MoD’s Office of Anti-Corruption Procedures investigates potential corruption threats.

As far as the contract implementation phase is concerned, Decision 367 mandates the inclusion of a provision in defence contracts stating that, in the event of corruption concerning the subject procurement involving the contractor or its representatives, such contactor is obliged to pay liquidated damages in the amount of 5 per cent of the gross value of the contract.

New anti-corruption measures (eg, a requirement for all medium-sized and large enterprises to implement internal anti-corruption procedures) are also planned to be introduced under the currently discussed new Transparency Act.

What are the registration requirements for lobbyists or commercial agents?

Under Polish law, all lobbyists must be entered in the register of entities conducting lobbying activities held by the minister relevant for administrative affairs. Applications for the registration need to be filed on a rather simple official form.

Persons performing intermediation services in executing contracts concerning military equipment need to possess the relevant licence in accordance with the Act of 22 June 2001 on Conducting the Business of Manufacture and Sale of Explosives, Weapons, Ammunition and Technology for the Military or Police (the CBMSE).

Are there limitations on the use of agents or representatives that earn a commission on the transaction?

No, there are no such limitations in Poland.