IsDB Group Sanctions system
It is the duty of the IDB Group under its Articles of Agreement to make arrangements to ensure that funds provided by the IDB Group are used only for their intended purposes. In furtherance of this duty, the IDB Group has established procedures and instruments for sanctions proceedings in situations where a firm or individuals (Party) commits a Corrupt and Fraudulent Practice in relation to an IDB Group-financed activities.
Based on the findings of a GIO investigation, the IDB Group, through the Integrity Oversight Committee, may determine that the IDB Group will impose sanctions on a Party for Corrupt and Fraudulent Practices. Sanctions that the IDB Group may impose include Reprimand, Conditional Non-Debarment, Debarment, Debarment with Conditional Release; or Restitution or Remedy. Debarred entities are then ineligible from future IDB Group-financed activities, either permanently or for a designated period of time.
The IDB Group may also decide that another International Financial Institutions or legal or regulatory body’s determination that a Party has failed to adhere to appropriate ethical standards, as defined by any established system of principles, rules, or duties, including the laws or regulations of a state, constitutes that Party’s failure to maintain the highest ethical standards as required by the IDB Group’s Integrity and Anti-Corruption policies. As such, the IDB Group may choose to debar a Party concurrent with a period of time designated by the other IFI or legal regulatory body.
Integrity Oversight Committee
The IOC consists of the Chair (Manager for Legal Operations Division, IDB Legal Department), three regular voting members, and three alternate members who fill any vacancies that might occur among the regular members due to absence or conflict of interest. The President shall appoint the regular and alternate members among IDB Group’s senior and managerial staff for a period of two (2) years.
The Integrity Oversight Committee (IOC) shall determine whether the evidence presented by the GIO, as contested by a Party, supports the conclusion that it is more likely than not that a Party engaged in one or more Corrupt and Fraudulent Practices. “More likely than not” means that, upon consideration of all the relevant evidence, a preponderance of the evidence supports a finding that a Party engaged in Corrupt and Fraudulent Practices.
Integrity Review Committee
The IRC consists of the Chair (a Vice President) and two regular voting members, of which one (1) being an IDB Group affiliate CEO and other an IDB or IDB Group affiliate Legal Director. Three alternate members shall be selected to fill any vacancies that might occur among the regular members due to absence or conflict of interest. The President shall appoint the regular and alternate members for a period of two (2) years.
Subject to the conditions set out in the IDB Group Integrity Principles and Guidelines, a Party may appeal IOC decisions to the Integrity Review Committee (IRC). The IRC may reduce, postpone, or lift sanctions the IDB Group has imposed on the basis of the Appeal. It may also require the IOC to reconsider a case if the IRC determines the Appeal has a significant impact on parties besides the one making an Appeal. Decisions of the IRC (or President in accordance with Paragraph 99 of the IDB Group Integrity Principles and Guidelines), on the Appeal shall be final, binding and not subject to further appeal.
Dissemination of Decisions
Upon being final, the GIO shall disseminate decisions for sanctions to the Executive Directors representing the Borrower of the concerned country of the Party; Senior Management; the General Counsels of the IDB, ICD, ICIEC, ITFC, and IRTI and the Vice President for Corporate Services; and such other units or persons within the IDB Group as the IOC Chair or GIO may determine.
If a sanction is imposed on a Party, information concerning the identity and decisions of the IOC and IRC regarding a Party and the sanctions imposed shall be publicly disclosed. The GIO will publish said information on the IDB Group website.
In the interest of cooperation, harmonization and transparency, the GIO may refer the findings of an investigation to other international organizations and representatives or agencies of IDB member countries that have a need to know the names of parties declared ineligible to participate in IDB-financed activity, or other information related to GIO investigations.