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Acta 23 - Cuenta del Milenio - Honduras

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1.7 Authorized<br />

Representatives<br />

Any action required or permitted to be taken, and any document required<br />

or permitted to be executed under this Contract by MCA-<strong>Honduras</strong> or the<br />

Consultant may be taken or executed by the officials specified in the<br />

SCC.<br />

1.8 Taxes and Duties Except as may be exempted pursuant to the Section 2.3(e) of the<br />

Compact, Consultant, any Sub-Consultant, and their respective personnel<br />

may be subject to certain taxes on amounts payable by MCA-H pursuant<br />

to this Contract. Each Consultant, each Sub-Consultant and their<br />

respective personnel shall pay all such local taxes and such other taxes,<br />

duties, fees, and other impositions levied under the laws of <strong>Honduras</strong>. In<br />

the event that any taxes are imposed on the Consultant, each Sub-<br />

Consultant and their respective personnel, the Contract Price shall not be<br />

adjusted to account for such taxes.<br />

1.9 Fraud and<br />

Corruption<br />

1.9.1 Definitions MCC requires that consultants under MCC-funded contracts observe the<br />

highest standard of ethics during the selection and execution of such<br />

contracts. In accordance with this requirement, for the purpose of this<br />

provision, the terms set forth below are defined as follows:<br />

(i)<br />

(ii)<br />

(iii)<br />

“corrupt practice” is the offering, receiving, or soliciting, directly<br />

or indirectly, of any thing of value to influence the action of a<br />

public official in the selection process or in contract execution; or<br />

the making of any payment to any third party, in connection with<br />

or in furtherance of this Contract, in violation of the United States<br />

Foreign Corrupt Practices Act of 1977, as amended (15 USC 78a<br />

et seq.);<br />

“fraudulent practice” is a misrepresentation or omission of facts in<br />

order to influence a selection process or the execution of a<br />

contract;<br />

“collusive practice” is a scheme or arrangement between two or<br />

more consultants, with or without the knowledge of MCA-<br />

<strong>Honduras</strong>, designed to establish prices at artificial, noncompetitive<br />

levels;<br />

(iv) “coercive practice” is harming or threatening to harm, directly or<br />

indirectly, persons or their property to influence their participation<br />

in a procurement process, or affect the execution of a contract;<br />

(v)<br />

“Obstructive practice” is:<br />

(aa) <strong>del</strong>iberately destroying, falsifying, altering or concealing of<br />

evidence material to the investigation or making false statements<br />

to investigators in order to impede materially an investigation by<br />

MCC or the MCA Entity into allegations of a corrupt , fraudulent,<br />

coercive, collusive, or intimidating any party to prevent it from<br />

disclosing its knowledge of matters relevant to the investigation or<br />

from pursuing the investigation, and<br />

(bb) acts intended to impede materially the exercise of the<br />

inspection and audit rights of MCC provided under the Compact;<br />

6

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