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The Sanctions Committee (the “Committee”) found that the preponderance of evidence indicated that the Respondent, who was the sole shareholder and legal representative of a company that was awarded contracts in connection with the “Support for Haiti’s Transport Sector Program,” had participated in a fraudulent practice. This consisted of knowingly misrepresenting a debarment imposed by the World Bank, the above-mentioned company’s bankruptcy, and the transfer of a contract.
The Statement of Charges and Evidence (the "Statement of Charges") prepared by the Office of Institutional Integrity ("OII") contained OII’s charge that the Respondent, who was the sole shareholder and legal representative of a company that was awarded contracts in connection with the “Support for Haiti’s Transport Sector Program,” had participated in a fraudulent practice sanctionable under the IDB Group Sanctions Procedures. OII alleged that, when negotiating and entering into IDB-financed contracts, the Respondent had knowingly misrepresented (i) a debarment imposed on him and the above-mentioned company by the World Bank and (ii) the company’s bankruptcy and the transfer of one of those contracts to a separate yet to be formed entity. OII further alleged that, by doing so, the Respondent knowingly misled the executing agency and the IDB to obtain a financial benefit.
Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer issued a Notice of Administrative Action (the “Notice”) to the Respondent. In his response to the Notice, the Respondent contested the charges brought by OII. Following the issuance of the Notice and reviewing the Respondent’s response, the Sanctions Officer issued a Determination finding that it was more likely than not that the Respondent had participated in a fraudulent practice.
The Sanctions Officer imposed a seven-year debarment on the Respondent, making the Respondent ineligible to participate and/or be awarded contracts regarding projects or activities financed by the IDB Group. The Respondent appealed the Sanction Officer’s Determination to the Committee.
Following a review of the record, the Committee decided that it was more likely than not that the Respondent had knowingly misrepresented (i) a debarment imposed by the World Bank and (ii) the company’s bankruptcy and the transfer of a contract in its entirety to a separate yet to be formed entity.
The Committee also concluded that the Respondent’s misrepresentations had been deliberate and made for the purpose of improperly securing a contract and obtaining the financial benefit derived from it. The evidence supported a finding that the Respondent’s conduct had not been the result of negligence but reflected an intentional pattern to circumvent contractual and ethical obligations.
The Committee imposed on the Respondent the sanction of debarment for a period of seven (7) years. During that period, the Respondent will be ineligible to participate in any activity or project financed by the IDB Group, to receive any amount from loans made by the IDB Group, and to participate in the preparation or execution of any project financed by the IDB Group. In determining the sanction, the Committee applied aggravating factors. The Committee considered no mitigating factors.
This sanction is subject to cross-debarment by the Multilateral Development Banks signatories to the Agreement for Mutual Enforcement of Debarment Decisions.