Read the Danish NCP's final statement regarding the conclusion of the specific instance – 6 September 2018.

The Danish NCP launched an assessment of the Danish Ministry of Defence’s contracting and construction process of the Lauge Koch inspection vessel, after the NCP became aware of allegations claiming that forced North Korean labour was used at a shipyard in Poland to build the vessel.

The Danish NCP found that the Ministry of Defence did not carry out due diligence in accordance with the OECD Guidelines for Multinational Enterprises. 

As outlined in the NCP’s final statement, the Ministry of Defence informed the NCP that a 2012 Corporate Social Responsibility (CSR) standards annex requirement was not applicable to Lauge Koch vessel procurement, as the vessel’s procurement process was linked to an option in a contract dating to 2004.

The NCP made a number of recommendations to the Danish Ministry of Defence with regards to risk-based due diligence:

-          The NCP recommends that the Danish Ministry of Defence revise its risk management systems in order to implement and meet the requirements of due diligence concerning its suppliers in accordance with the OECD Guidelines Chapter II.

-          Furthermore, the Ministry of Defence should ensure that the Ministry's CSR policy is in accordance with the OECD Guidelines for Multinational Enterprises, particularly with regards to human and labor rights.

-          The Ministry of Defence should define CSR requirements for suppliers and continuously ensure compliance with these requirements.

-          The NCP recommends that the Ministry of Defence report and communicate about these efforts and measures carried out in relation to suppliers to prevent actual and potential adverse impacts.

A final statement was published on 6 September 2018.

#riskmanagementsystem #duediligence #labourrights #security #publicprocurement #state-ownedenterprise #recommendations #determination #follow-up