How the IDB Investigates Corruption in Projects

The Office of Institutional Integrity’s investigations play a pivotal role in supporting the Bank’s efforts to hold accountable firms and individuals that engage in prohibited practices and compromise the integrity of IDB Group-financed activities. The Office of Institutional Integrity’s investigations seek to ensure the efficiency, fairness, and transparency of our operations.

What does the Office of Institutional Integrity investigate?

The Office of Institutional Integrity investigates allegations and information related to prohibited practices in IDB Group-financed activities. The Office of Institutional Integrity investigations are conducted in accordance with the principles adopted by the International Financial Institutions Anti-Corruption Task Force in September 2006.

When does the Office of Institutional Integrity investigate?

When the Office of Institutional Integrity receives information, it first determines if it has jurisdiction over the matter. This is done by answering the following three questions:

1. Does the allegation concern an activity financed by the IDB Group?
2. Does the allegation concern potential Prohibited Practices?
3. Does the allegation provide sufficient credible information to warrant investigation?

If the answer is yes for all three questions, the Office of Institutional Integrity conducts a full investigation. If the information does not fulfill the three criteria listed above, the Office of Institutional Integrity recommends that the case be closed. Of the 130 new allegations received in 2011, 104 did concern the commission of a Prohibited Practice. Together with the 65 cases pending from 2010, the Office of Institutional Integrity had a docket of 195 active cases in 2011, and completed the investigation of 150 of these cases.

How does the Office of Institutional Integrity investigate?

The Office of Institutional Integrity uses a variety of investigative tools, including conducting interviews and analyzing information. An investigation leads to three possible outcomes for the case:

• Substantiated: The evidence is sufficient to confirm the allegation.
• Unsubstantiated: The evidence is insufficient either to confirm or deny the original allegation.
• Unfounded: The allegation is determined to be untrue.

What happens next? Sanctions Process