Written question WQ97314

The Welsh Government recognises the importance of ensuring that public sector funding and procurement practices reflect our values, including our commitment to ethical standards.

The Procurement Act 2023 outlines several exclusion grounds that contracting authorities can use to exclude a supplier. These grounds include fraud, bribery, and unethical practices. Following the conclusion of an investigation, the supplier may be placed on a debarment list. Contracting authorities are mandated to consult this list during procurement processes to ascertain whether any suppliers must be excluded. This measure ensures that public sector procurement practices uphold ethical standards and values.

Under the Social Partnership and Public Procurement Act, we will also introduce new regulations to encourage organisations to think about how public procurement can contribute to economic, social, environmental, and cultural well-being. We are also adding greater transparency by requiring organisations to report annually on how they are meeting these goals through their public procurement. We expect these new regulations to come into force in 2026, subject to Senedd consent.

Welsh Government also has a Code of Practice on Ethical Employment in Supply Chains, and we encourage organisations to sign up to the Code as a way to reduce the risk of labour exploitation and modern slavery in their supply chains.

In relation to grants, as part of signing up to the Welsh Government’s standard grant award letter, grant-funded bodies are required to sign and accept the standard terms and conditions, including obligations to “comply with all applicable domestic or international laws or regulations or official directives”.