Fraudulent Practice: The Respondent was found to have engaged in a fraudulent practice 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.
The Individual Respondent (“Respondent”) was assigned to the Executing Agency to monitor the implementation of the Support for Haiti Transportation Sector Program (the “Program”), and received 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 a fraudulent practice related to the Program. OII’s specific accusations were that, the Respondent put in place a fraudulent scheme when he knowingly concealed the non-compliance of the supervision contracts to misappropriate funds allocated for the supervision of road rehabilitation works under the Program. 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 a fraudulent practice. As a result, the SO imposed a sanction of debarment for a period of five (5) 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 sophisticated means utilized that imitated money laundering tactics designed to conceal the ultimate beneficiaries; the magnitude of losses caused by the misconduct; and the Respondent’s lack of cooperation in the investigation. 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.