SNC63

The Statement of Charges and Evidence (the "Statement of Charges") prepared by the Office of Institutional Integrity ("OII") contained OII’s charge that the Respondent Firm had engaged in corrupt practices sanctionable under the IDB Group Sanctions Procedures. OII alleged that the Respondent Firm had facilitated the laundering and repatriation of bribes from a third party to a then high-ranking public official in Ecuador and had made contributions to the political campaign of that public official to secure regulatory approvals critical to the execution of the Project.

Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer issued a Notice of Administrative Action (the “Notice”) to the Respondent Firm. In its Response to the Notice, the Respondent Firm contested all charges brought by OII. Following the issuance of the Notice and reviewing the Respondent Firm’s response, the Sanctions Officer issued a Determination finding that it was more likely than not that the Respondent Firm had engaged in corrupt practices. The Sanctions Officer provided also for the extension of sanctions to certain companies under the control of the Respondent Firm based on Section 8.3 of the Sanctions Procedures.

The Sanctions Officer imposed an eight-year debarment against the Respondent Firm, making it ineligible to participate in projects financed by the IDB Group, including institutional procurements and third-party funded activities. The Respondent Firm appealed the Sanction Officer’s Determination to the Sanctions Committee, contesting the charges and the level and extension of the sanctions imposed.

Following a review of the record (including the Statement of Charges, the Notice, the Respondent Firm’s Response, the Sanctions Officer’s Determination, the Respondent Firm’s Appeal and the OII’s Reply), the Committee concluded that it was more likely than not that the Respondent Firm had engaged in corrupt practices. The Committee imposed on the Respondent Firm the sanction of debarment with conditional release for a period of one hundred thirty-two (132) months. During that period, the Respondent Firm will be ineligible to participate in or be awarded contracts for projects or activities financed by the IDB Group. In determining the sanction, the Committee considered as aggravating factors the use of sophisticated means, the Respondent Firm’s central role in the prohibited practices, the management’s role in the prohibited practices, the involvement of public officials, and the interference with the investigation. The Committee concluded that there were no mitigating factors.

Starting January 1, 2029, the IDB Group may commute the debarment sanction, if the Respondent Firm proves to the Sanctions Committee that the Respondent Firm has implemented an effective compliance program, undergone an independent assessment of that program, addressed identified gaps and risks, and demonstrated full adherence to the conditions set forth in the decision.

This sanction is subject to cross-debarment by the Multilateral Development Banks signatories to the Agreement for Mutual Enforcement of Debarment Decisions.