defined in the relevant International Labour Organisation conventions (such as the conventions  on freedom of association and collective bargaining; elimination of forced and compulsory  labour; abolition of child labour).  The tenderer shall comply with all applicable laws and regulations and codes relating to anti- bribery and anti-corruption. The European Commission reserves the right to suspend or cancel  project financing if corrupt practices of any kind are discovered at any stage of the award  process or during the execution of a contract and if the contracting authority fails to take all  appropriate measures to remedy the situation. For the purposes of this provision, ‘corrupt  practices’ are the offer of a bribe, gift, gratuity or commission to any person as an inducement  or reward for performing or refraining from any act relating to the award of a contract or  execution of a contract already concluded with the contracting authority.  Tenders will be rejected or contracts terminated if it emerges that the award or execution of a  contract has given rise to unusual commercial expenses. Such unusual commercial expenses  are commissions not mentioned in the main contract or not stemming from a properly  concluded contract referring to the main contract, commissions not paid in return for any  actual and legitimate service, commissions remitted to a tax haven, commissions paid to a  payee who is not clearly identified or commissions paid to a company which has every  appearance of being a front company.  Contractors found to have paid unusual commercial expenses on projects funded by the  European Union are liable, depending on the seriousness of the facts observed, to have their  contracts terminated or to be permanently excluded from receiving EU funds.  The contracting authority reserves the right to suspend or cancel the procedure, where the  award procedure proves to have been subject to breach of obligations, irregularities or fraud. If  breach of obligations, irregularities or fraud are discovered after the award of the contract, the  contracting authority may refrain from concluding the contract.  If a tender procedure is cancelled, tenderers will be notified by the contracting authority. If  the tender procedure is cancelled before the tender opening session the sealed envelopes will  be returned, unopened, to the tenderers.  Cancellation may occur, for example, if:   the tender procedure has been unsuccessful, namely where no suitable, qualitatively or  financially acceptable tender has been received or there has been no valid response at  all;  25. Cancellation of the tender procedure  24.5 Breach of obligations, irregularities or fraud  24.4 Unusual commercial expenses 24.3 Anti-corruption and anti-bribery  The European Commission applies a policy of 'zero tolerance' in relation to all wrongful  conduct which has an impact on the professional credibility of the tenderer. Physical abuse or punishment, or threats of physical abuse, sexual abuse or exploitation,  harassment and verbal abuse, as well as other forms of intimidation shall be prohibited. Zero tolerance for sexual exploitation, abuse and harassment:  August 2020 c4b_itt_en.doc  Page 15 of 17 