Collusive Practice: The Individual Respondent was found to have manipulated a bidding process, through collusive agreements, in order to unduly favor certain entities with awards granted under favorable conditions, in detriment of public interest.
The Individual Respondent (“Respondent”) served as the de facto representative of a company within the framework of the implementation of the Urban Transportation Program of the Federal District and Non-Reimbursable Technical Cooperation (the “Program”). The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against the Respondent for allegedly engaging in a collusive practice related to the Program. OII accused the Respondent of manipulating a bidding process, through collusive agreements, in order to unduly favor certain entities with awards granted under favorable conditions in detriment of public interest. 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 collusive practice. As a result, the SO imposed a sanction of debarment for a period of eight (8) 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 repetition of a pattern of conduct, its degree of sophistication, the participation of public officials in carrying out the prohibited practice, the magnitude of the damage caused by the Respondent's actions, the damage caused to the Banks reputation, the central role played by the Respondent and the use of sophisticated means in the commission of the prohibited practice.
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.