The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against a Firm Respondent (“Principal Respondent”) for allegedly engaging in corrupt and fraudulent practices related to the following programs: (i) Program to Improve Equity and Strengthen Health Services and (ii) Program to Strengthen Results-Based Management in the Health Sector (the “Programs").  OII identified one firm (“Respondent Firm”) that was under control of the sanctioned Principal Respondent. According to the Section 8.3 of the Sanctions Procedures, OII requested to extend the sanction imposed to the Principal Respondent to the Respondent Firm.

The Sanctions Officer (“SO”) determined that it is more likely than not that the Principal Respondent engaged in corrupt and fraudulent practices. As a result, the SO imposed a sanction of debarment. Further, pursuant to Section 8.3 of the Sanctions Procedures, the SO extended this sanction to the Respondent Firm. 

Subsequently, the Principal Respondent and the Respondent Firm appealed the SO’s Determinations before the Sanctions Committee (the “Committee”). In the Principal Respondent’s Appeal to the Committee, the Principal Respondent denied committing the prohibited practices and the Respondent Firm contested the extension of the sanction.

Following a de novo review of the written record, the Committee imposed a ten (10) year-debarment period in which the Principal Respondent will be ineligible to participate or be awarded contracts for projects or activities financed by the Bank. Further, after a de novo review of the written record as well as oral statements, arguments, and additional materials presented by the parties during the hearing, the Committee also extended that sanction to the Respondent Firm, pursuant to Section 8.3 of the Sanctions Procedures. In deciding to include the Respondent Firm among the sanctioned parties, the Committee took in consideration that the Respondent Firm is a legal entity controlled directly by the sanctioned Principal Respondent Firm and the Principal Respondent is shareholder of the Respondent Firm.