SNC9

The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against an Individual Respondent (“Principal Respondent”) for allegedly engaging in fraud, corrupt and collusive practices in connection with the Establishing Cadastral Registry and Strengthening Legal Certainty Protected Areas Program in Guatemala (the “Program”). OII identified two firms (“Respondent Firms”) were under common ownership of the Principal Respondent. According to Section 8.3 of the Sanctions Procedures, OII requested to extend the sanction imposed to the Principal Respondent to the Respondents Firms.

The Sanctions Officer (“SO”) determined that it is more likely than not that the Principal Respondent engaged in fraud, corrupt and collusive 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 Firms.

Subsequently, the Principal Respondent and the Respondent Firms 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 Firms contested the extension of the sanction.

Following a de novo review of the written record, the Committee imposed a thirteen (13) 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. In accordance with Section 8.3 of the Sanctions Procedures, the Committee also extended this sanction to the Respondent Firms. In deciding to include the Respondent Firms among the sanctioned parties, the Committee took into consideration that the Respondent Firms were under common ownership of the Principal Respondent.