143-02

The individual respondent (“Respondent”), acting as the legal representative of a company, entered into an agreement to develop a COVID-19-related technology (the “Project”). The Office of Institutional Integrity (the “OII”) submitted a Statement of Charges and Evidence against the Respondent for allegedly misappropriating funds related to the Project. The OII accused the Respondent of transferring part of the Project funds to a bank account other than that officially assigned to the Project to address liquidity issues. Consequently, and in accordance with the Sanctions Procedures, the Sanctions Officer (the “SO”) issued a Notice of Administrative Action (the “Notice”) against the Respondent. 

In its Response to the Notice, the Respondent admitted the facts but requested the SO to dismiss the charges. The SO determined that it was more likely than not that the Respondent engaged in the misappropriation. As a result, the SO imposed a sanction of conditional non-debarment for 18 (eighteen) months. During that time, the Respondent may continue to participate in operations and receive contract awards in projects or activities financed by the IDB Group if the company demonstrates that all company employees, including the Respondent, have received adequate, sufficient, and continuous training in corporate integrity and business ethics. Failure to meet the imposed conditions will result in a one-year debarment. In determining the sanction, the SO considered, among others, the company’s restitution of funds and its admission of the facts as mitigating circumstances. 

The Respondent accepted the conditions imposed by the SO and, therefore, in accordance with the Sanctions Procedures, the non-conditional debarment came into force.