Anticorruption and Integrity

OAGI issued warnings to two sanctioned firms and a consultant for attempts to circumvent ADB’s sanction.

The two firms, which were fulfilling existing obligations in ADB projects, entertained the possibility of a variation order, and did not disclose to the executing agency that they were sanctioned by ADB.

The consultant, on the other hand, tried to cooperate with ADB in his capacity as an advisor of a new company.

Under ADB’s Integrity Principles and Guidelines, any further attempt to accept a variation order that is beyond the scope of the original contract or participate in an ADB-financed activity such as involvement in ADB projects or participation in ADB conferences and workshops while ineligible is not allowed. It will result in sanction extension and the posting of the company’s or consultant’s name on ADB’s website.

Sanctioned firms or individuals can be reinstated after the debarment period. However, reinstatement is not automatic. Sanctioned firms or individuals should write OAGI, refer to the reason for the sanction, and provide a basis for which ADB should consider their reinstatement.

OAGI assesses the credibility of any request for reinstatement and the merits of reinstating a party based on several factors, such as restitution, changes in management or ownership, verifiable mechanisms to improve business governance, etc.

Here are some examples of how reinstated firms improved their business governance:

• Revised quality oversight procedures concerning joint venture partner and subcontractor submission
• Revised internal controls and procedures relating to the completion and submission of CVs
• Disciplined the staff concerned that led to the firm’s debarment and gave them additional training on ethics and corporate compliance program, and extra support from their management team
• Abided by the terms of ADB’s sanction.

Commencing in April 2008, OAGI provides projects departments with a list of open complaints and investigations relating to ADB projects, excluding those involving ADB staff.

Projects departments are requested to carefully scrutinize the implementation of the projects on the list, especially if there are requests for contract variations that involve additional project scope and contract amount, consultant replacements, extension of completion dates, and the like.