SANCTIONS
SYSTEM
ANNUAL
REPORT
2013
ABBREVIATIONS ACPC - ANTI-CORRUPTION POLICY COMMITTEE
ACKNOWLEDGMENT
CMS -
CASE MANAGEMENT SYSTEM
This document was prepared, in their respective sections, by the Office of Institutional Integrity, the Case Officer, and the Secretary to the Sanctions Committee, under supervision of the Chairperson of the Sanctions Committee and with the input of the members of the Sanctions Committee.
CO -
CASE OFFICER
EVP -
EXECUTIVE VICE PRESIDENT
This document contains confidential information relating to one or more of the ten exceptions of the Access to Information Policy and will be initially treated as confidential and made available only to Bank employees. The document will be disclosed and made available to the public upon approval.
OII - OFFICE OF INSTITUTIONAL INTEGRITY
IDB - INTER-AMERICAN DEVELOPMENT BANK NAA - NOTICE OF ADMINISTRATIVE ACTION
PNAA - PRELIMINARY NOTICE OF ADMINISTRATIVE ACTION SNC -
SANCTIONS COMMITTEE
TABLE OF CONTENTS I.
INTRODUCTION
1
II. A. B.
OUTCOME OF THE SANCTIONS SYSTEM 2 SUMMARY OF ACTIVITIES OF EACH OF THE UNITS IN THE SANCTIONS SYSTEM 2 SANCTIONS IMPOSED AND RECOGNIZED BY THE IDB GROUP IN THE FIRST SEMESTER OF 2013 3
III.
ILLUSTRATIVE CASES
IV. A. B. C.
INVESTIGATIVE AND POST-INVESTIGATIVE ACTIVITIES OF THE OFFICE OF INSTITUTIONAL INTEGRITY 6 INVESTIGATIVE ACTIVITIES 6 RESULTS OF INVESTIGATIVE PROCESS 10 POST-INVESTIGATIVE ACTIVITIES 15
4
V. FIRST INSTANCE OF THE ADJUDICATIVE PHASE: ACTIVITIES OF THE CASE OFFICER 16 A. THE ROLE OF THE CO 16 B. DETERMINATIONS C. NUMBER OF PNAAs ANALYZED AND NUMBER OF NAAs ISSUED 17 D. RECOMMENDED SANCTIONS 18 E. SANCTIONS IMPOSED 18 F. TIME TAKEN TO ISSUE A DETERMINATION 18 G. CO’s NOTIFICATION PROCESS 19
VI. APPELLATE LEVEL ACTIVITIES: THE SANCTIONS COMMITTEE A. THE ROLE OF THE SNC B. THE SNC’s DOCKET C. SNC’s INPUT D. SNC’s OUTPUT E. SNC’s SUBSTANTIVE OUTPUT F. QUALITATIVE INDICATORS G. CROSS-DEBARMENT
20 20 20 20 21 22 23 23
VII. A. B.
ADDITIONAL ACTIVITIES OF THE SANCTIONS SYSTEM CROSS-COLLABORATION OUTREACH
24 24 24
VIII.
CHALLENGES AND AREAS OF FUTURE WORK
26
[ 7 ]- SANCTIONS SYSTEM JOINT SEMI-ANNUAL REPORT 2013
1.1 This is the joint semi-annual report of the Inter-American Development Bank (“IDB” or the “Bank”) Group (IDB Group) Sanctions System. The objective of the report is to present to the Audit Committee of the Board of Executive Directors of the IDB an integrated view of an information about the Sanctions System and functioning of each of its units, both individually and as each relates to the others. The Audit Committee of the Board of Executive Directors periodically reviews with the Chief of the mends a sanction to be imposed Office of Institutional Integrity and issues a Notice of Adminis(OII), the Case Officer (CO) and trative Action (NAA) against the the Chairperson of the Sanctions Respondent 1. The Respondent Committee (SNC) activities and can appeal this recommended outcomes with respect to ma- sanction before the SNC. The SNC tters pertaining to Prohibited is the second and final instance Practices (DR-525-25). of adjudication in the Sanctions System. The SNC takes Decisions 1.2 The Sanctions System com- in panels of three members or, in prises two different phases: (i) exceptional cases, as a full Comthe investigative phase, and (ii) mittee. the adjudication phase. OII is responsible for conducting in- 1.3 In addition to its investivestigations and presenting Pre- gative functions, OII also has a liminary Notices of Administrati- preventive mandate. To comply ve Action (PNAA) before the CO with this mandate, OII has a team when cases are substantiated. that is responsible for the design The adjudication phase is in turn of integrity related training and comprised of two different ins- tools to address integrity risks. tances. In the first instance, De- The prevention team also proviterminations are made by the CO. des advice to other departments If the CO determines that the evi- within the IDB Group in relation dence supports a finding that the to the identification, assessment Respondent engaged in a Prohi- and mitigation of integrity and bited Practice, the CO recom- related reputational risks. OII has
prepared a separate report that covers its prevention activities during the first half of 2013. 1.4 This report consists of eight sections, including this introduction. The second section includes consolidated information on the number of sanctions imposed during the first semester of 2013. The third section provides examples of cases that resulted in the imposition of sanctions. The fourth, fifth and sixth sections describe, respectively, the activities of OII, the CO and the SNC. The seventh section includes information on additional activities related to the functioning of the Sanctions System. Finally, the eighth section includes some reflections on the challenges ahead.
1- The possible Sanctions are: reprimand, debarment, conditional non-debarment, debarment with conditional release, and other sanctions (the restitution of funds or the imposition of fines representing reimbursements of
[ 8 ]- SANCTIONS SYSTEM JOINT SEMI-ANNUAL REPORT 2013
II. OUTCOME OF THE SANCTIONS SYSTEM A. SUMMARY OF ACTIVITIES OF EACH OF THE UNITS IN THE SANCTIONS SYSTEM
[ 9 ]- SANCTIONS SYSTEM JOINT SEMI-ANNUAL REPORT 2013
Completed 23 investigations
Submitted
OII
4 PNAAs to CO involving
7 Respondents
Resubmitted
1 PNAA to CO involving
2 Respondents
Submitted
Replies to the SNC for
6 Respondents
Submitted
1 file with Additional Information
pursuant to Sanction Procedures
Imposed 3 Sanctions
Issued 1
CO
Determination of Insufficient Evidence
involving 2 Respondents
Issued 5 NAAs against 5 Respondents
Handled
78 submissions
SNC
Issued
8 decisions, all of which
involved a sanction
Finalized
the first semester with
no cases pending
FIGURE 2.1: SUMMARY OF ACTIVITIES
[ 10 ]- SANCTIONS SYSTEM JOINT SEMI-ANNUAL REPORT 2013