Globalizing the Fight A i t C tiAgainst Corruption:

How the MDBs are doing it

The 15 TH International Anti -Corruption Conference The 15 International Anti Corruption Conference 8 November, 2012

Brasi l ia , Brazi l

Overview

General update on implementation of cross debarmentGeneral update on implementation of cross debarment

Unified Cross Debarment Website and Prevention EffortsEfforts

Sanctioning Guidelines

Treatment of Corporate Groups

EIB’s Integrity Frameworkg y

Working with National Authorities & the WB's Integrity App

Update on Cross Debarment Update on Cross Debarment Implementation

M i t ll Ald

p

Maristella AldanaInter-American

Development Bank Development Bank

Update on Cross Debarment Implementation

• Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010; now effective for all Participating Institutions. April 9, 2010; now effective for all Participating Institutions.

• AfDB fulfilled requirements for implementation of Agreement on July 5, 2012

Ad ti f h i d d fi iti f P hibit d P ti Adoption of harmonized definitions of Prohibited Practices

Adoption of Principles and Guidelines for Investigations

Separate investigative and decision-making authorities

W itt d bli l il bl d Written and publicly available procedures

Standard of Preponderance of evidence

Range of sanctions that considers principle of proportionality

• More than 150 entities and individuals have been cross-debarred.

• None of the Participating Institutions has used the escape clause

• Recognition of debarment by other institutions and agencies?

Unified Cross Debarment W b it d P ti Website and Prevention

Efforts

Clare WeeClare WeeAsian Development Bank

Unified Cross Debarment Websitewww crossdebarment orgwww.crossdebarment.org

• Reporting information

• Links • Debarment lists

Prevention EffortsPrevention Efforts

Trainings / Publications

Project Procurement Related Reviews

MONGOLIA

BANGLADESH

CAMBODIASRI LANKA

PHILIPPINES

Harmonized Sanctioning Harmonized Sanctioning Guidelines

Anna BossmanAnna BossmanAfrican Development Bank

Sanctioning Guidelines

Adopted by MDBs as principles and guidelines : September 10, 2011.

Designed to ensure consistent treatment of individuals and fifirms.

Describes Sanctions Process: administrative in nature.

Recognizes separate Sanctioning Authority independent of Investigative Office.

h d h h b d States who is sanctioned: Entities that engage in Prohibited Practices.

Recognizes Principle of proportionality mitigating and Recognizes Principle of proportionality-mitigating and aggravating circumstances when applying sanctions.

Sanctioning Guidelines

Recommends range of sanctions e.g. Debarment, Release, Permanent or indefinite debarment Conditional debarment Permanent or indefinite debarment, Conditional debarment, Restitution, Letter of reprimand.

Recommends Base sanction: three year debarment with conditions.

Considers aggravating circumstances for debarment period e.g. severity, harm caused, obstruction, past sanctions history and violation of sanctions.

Considers mitigating circumstances for debarment period e.g. minor role, voluntary corrective action, cooperation with investigationsinvestigations.

Considers Sanction on a cumulative basis: for multiple conduct by entity.

Treatment of Corporate Treatment of Corporate Groups

Enery QuinonesEnery QuinonesEuropean Bank for Reconstruction

and Development p

Treatment of Corporate Groups

• Why focus on Corporate Groups: Circumvention of sanction?

• Attributing Liability within the Group: Who is responsible?

h d d• Corporate Chain: Up/down -- Sideways

• Changes in Corporate Group – acquisitions/mergers/reorganisations

• Different sanctions for different levels of culpability

• Sanctioned individuals hired as employees

l Al d i b idi i• Example: Alstom and its subsidiaries

EIB’s Integrity EIB’s Integrity Framework

Duncan SmithDuncan SmithEuropean Investment

Bank

EIB’s Integrity Framework

• Updating of AFP and investigation procedures incl. for data protection exclusion procedures PIRs etcprotection, exclusion procedures, PIRs etc.

• Selection of Exclusion Committee members and implementation of Exclusion Proceduresimplementation of Exclusion Procedures

• Adoption of IFI harmonised sanctions guidelines and treatment of corporate groupstreatment of corporate groups

• Revision of Guide to Procurement (updated Covenant of Integrity), work on the MRI initiative and updating of EIB's g y), p gcontractual terms and conditions ("learning the lessons")

• Continued awareness raising on fraud/corruption issues g / pinside and outside EIB (training etc.)

Working with National A h i i & WB’ Authorities & WB’s

Integrity AppIntegrity App

Stephen ZimmermannStephen ZimmermannThe World Bank

Working with National AuthoritiesBuilding an International Corruption Hunters Allianceg p

Working with Canadian Working with the British and D t h t t i ti t authorities on the Padma

Bridge investigation

Dutch governments to investigate corruption implicating a Dutch company and a former World Bank consultant

The Norwegian National An Ethiopian court convicted a gAuthority convicted three former employees of Norconsult

An Ethiopian court convicted a Procurement official based on information provided by the World Bank

The World Bank’s Integrity App