Guest Announcement: The World Bank Office of Suspension and Debarment’s Fifth International Debarment Colloquium

Today’s guest post is from Alexandra Manea, Legal Counsel at the World Bank’s Office of Suspension and Debarment.

The World Bank Group (WBG) sanctions system is a critical part of the institution’s multi-faceted anticorruption effort. Comprised of independent decision-makers, the sanctions system investigates allegations of misconduct in WBG-financed projects and, if those allegations are substantiated, can debar culpable companies and individuals from engaging in any WBG -financed activity for a period of time. The impact of a WBG-imposed debarment is amplified through a cross-debarment agreement with other Multilateral Development Banks (MDBs), including the African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.

With the unprecedented amount of multilateral financing and public spending going toward crisis aid and recovery efforts, governments and aid agencies can use debarment to ensure that they work only with reliable and ethical business partners. In times of crisis, it is crucial to facilitate knowledge-sharing among stakeholders to increase the impact of connected efforts to fight fraud and corruption.

During a series of webinars over five consecutive weeks starting on September 22 (this coming Tuesday), the WBG’s Office of Suspension and Debarment (OSD) will host the fifth edition of its International Debarment Colloquium series, a flagship event that showcases developments in debarment systems worldwide and examines the various uses of debarment in the procurement and anticorruption contexts. Representatives from multilateral organizations, government, private sector, non-governmental organizations, and academia will discuss: Continue reading

Sanctions Systems of Multilateral Banks: Overview and Responses

Although prosecutions under transnational anti-bribery laws like the US Foreign Corrupt Practices Act may get more attention, the major multilateral development banks (MDBs) have adopted administrative sanctions systems that significantly contribute to the strengthening of integrity structures in the countries in which they operate. Indeed, the seven large MDBs share an anticorruption strategy that includes harmonized definitions of fraudulent, corrupt and other prohibited practices. The strategy also incorporates shared principles for conducting integrity due diligence in private sector transactions, and a framework for sharing information to address integrity concerns. These sanctioning systems help to deter and prevent corruption in funded projects, thereby helping to ensure that MDBs achieve their development mandates and fulfill their fiduciary duty to guarantee that their loans are used “only for the purposes for which the loan was granted”. In some cases, as in the World Bank’s Macmillan Publishers and SNC-Lavalin debarments, MDB sanctions have preceded criminal charges by national authorities. In this post, I will provide a brief overview of these systems. Continue reading