The Respondent Firm (“Respondent”) was the representative of a consortium, which participated in a bidding process under the Strategic Public Transportation Systems Program (the “Program”). The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against the Respondent and the other parties constituting the consortium for allegedly engaging in fraudulent practices and a collusive practice related to the Program. OII accused the Respondent of submitting false information about the personnel that would carry out the work in order to be awarded a contract. It was also determined that during the execution of the Contract the Respondent submitted false information about the progress of the work in order to meet the provisions of the Contract and was part of collusive agreements to prevent the correct performance of the Contract’s inspection and control functions. Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer (“SO”) issued a Notice of Administrative Action (“Notice”) to the Respondent. The Respondent did not submit a Response to the Notice.

The SO determined that it was more likely than not that the Respondent engaged in a fraudulent practice and a collusive practice. As a result, the SO imposed a sanction of debarment for a period of fourteen (14) years, during which time the Respondent will be ineligible to participate or be awarded contracts in projects or activities financed by the Bank Group. In determining the sanction, the SO took into account, as aggravating factors, the impact on the Program due to non-compliance with the execution of the Works Contract, the recurrence of the conduct of the Respondent, his central role in committing the prohibited practices, the involvement of public officials in charge of supervising the Works and the Audit Contracts and the endangerment of the community due to the poor condition of the roads.

In accordance with the Sanctions Procedures, the sanction imposed entered into force immediately and the Bank provided notice of this declaration of ineligibility to the other Multilateral Development Banks that are a party to the Agreement for Mutual Enforcement of Debarment Decisions.