Fraudulent Practices: The Respondent was found to have engaged in multiple fraudulent practices when he concealed the non-compliance of the supervision contracts, and knowingly attempted to mislead the Bank in order to misappropriate funds allocated for the Program.
Obstructive Practice: The Respondent was found to have engaged in an obstructive practice when he deliberately falsified evidence that was material to the investigation in order to impede the investigation into prohibited practices.
The Individual Respondent (“Respondent”) was assigned to the Executing Agency and was in charge of executing the Support for Haiti Transportation Sector (the “Program”), receiving a supplementary salary paid with Program funds. The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against the Respondent, among others, for allegedly engaging in fraudulent and obstructive practices related to the Program. OII’s specific accusations were that the Respondent concealed the non-compliance of the supervision contracts and orchestrated three fraudulent schemes to misappropriate funds allocated for the supervision of road rehabilitation works under the Program. OII also alleged that the Respondent committed an obstructive practice by intentionally impeding the exercise of OII’s inspection and audit rights, and deliberately falsifying evidence to impede the investigation. In conjunction with the Statement of Charges, OII submitted a Request to temporarily suspend the Respondent from participating in programs financed by the Bank Group. Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer (“SO”) issued a Notice of Temporary Suspension and a Notice of Administrative Action (“Notice”) to the Respondent. The Respondent did not file a request for reconsideration of the Temporary Suspension, nor did he provide a Response to the Notice.
The SO determined that it is more likely than not that the Respondent engaged in fraudulent and obstructive practices. As a result, the SO imposed a sanction of debarment for a period of 15 years, during which time the Respondent will be ineligible to participate or be awarded contracts for projects or activities financed by the Bank Group. In determining the sanction, the SO took into account the period of Temporary Suspension already served by the Respondent and the following aggravating factors: the repeated pattern of conduct that occurred over an extended period of time; the sophisticated means utilized that imitated money laundering tactics designed to conceal the ultimate beneficiaries; the Respondent’s managerial position from which he directed the implementation of the fraudulent and obstructive practices; as well as the magnitude of losses caused by the misconduct. 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.