Project Name
Country
Prohibited Practice(s)
Obstructive Practice
Nationality
Year
Type
Duration
Fraudulent Practices: The Respondent was found to have submitted false financial information to meet tender requirements and obtain the financial benefit of the contracts. In addition, the Respondent was found to have failed to disclose commissions paid to the agents, as required by the bidding documents.
Corrupt Practice: The Respondent was found to have promised or paid the agents sums of money to influence government officials involved in awarding the contracts.
The Individual Respondent (“Respondent”) was the representative of a consortium, which participated in multiple bidding processes under the Innovation in School Infrastructure Program in Panama (the “Program”) and was awarded two construction contracts. The Office of Institutional Integrity (“OII”) submitted a Statement of Charges and Evidence against the Respondent for allegedly engaging in fraudulent and corrupt practices related to the Program. OII’s specific accusation was that the Respondent presented false financial background information to satisfy the bidding requirements for construction contracts under the Program. In addition, OII argued that the Respondent failed to disclose commissions paid to the consortium’s agents for their assistance in proposal preparation. OII also alleged that the Respondent engaged in a corrupt practice by promising or paying the agents sums of money to influence government officials involved in awarding the contracts. Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer (“SO”) issued a Notice of Administrative Action (“Notice”) to the Respondent. The Respondent did not submit a Response to the Notice.
The SO determined that it was more likely than not that the Respondent engaged in fraudulent and corrupt practices. As a result, the SO imposed a sanction of debarment for a period of nine (9) 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, as aggravating factors, the Respondent’s repeated pattern of conduct and the involvement of public officials in the corrupt practice. As a mitigating factor, the SO considered the Respondent's cooperation during OII’s 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.