The World Bank has detailed procedures for investigating and sanctioning fraud or corruption involving World Bank-supported operations. Its sanctions system is a key component of the World Bank’s anti- corruption efforts and involves three independent offices working to address fraud and corruption matters efficiently and fairly.
The World Bank’s Integrity Vice Presidency (INT) monitors integrity risks in World Bank operations and receives allegations about potential misconduct from a variety of sources, including its online complaint form. All allegations are reviewed and assessed by INT, and matters related to sanctionable misconduct within INT’s mandate may warrant full investigation. When INT completes an investigation and believes it has found credible evidence of sanctionable conduct, INT can seek sanctions against the firms and individuals involved (referred to in the sanctions system as “respondents”) by either submitting a sanctions case to the first tier of review in the sanctions system, or by negotiating a settlement.
The World Bank’s Office of Suspension and Debarment (OSD) provides the first level of adjudication in the World Bank’s sanctions system. Prior to the issuance of any sanctions, OSD reviews the sufficiency of the evidence against the respondents and issues a sanctions determination made by the Chief Suspension and Debarment Officer (SDO). Most sanctions involve debarment with conditional release, but other potential sanctions include (i) reprimand, (ii) conditional non-debarment, (iii) debarment, or (iv) restitution, all of which may extend to a respondent’s affiliates, successors, and assigns. Debarments of over one year are also subject to mutual enforcement by four other multilateral development banks.
The World Bank’s Sanctions Board is the second tier of review that sanctions cases. A case reaches this stage if the respondent chooses to contest liability and/or the sanction recommended by the first- tier review officer. The Sanctions Board reviews cases de novo, without reexamining decisions made at the first tier. The Sanctions Board considers the entire case record and affords the parties an opportunity to make any additional arguments, furnish new evidence, and be heard at a hearing if one is so convened. Sanctions Board decisions are final and unappealable.
An entity sanctioned with conditional release will not be released from sanction until the conditions for release have been met to the satisfaction of the World Bank’s Integrity Compliance Officer. Such conditions typically require a sanctioned entity to develop and implement integrity compliance measures that reflect the principles set out in the World Bank’s Integrity Compliance Guidelines, or, in the case of sanctioned individuals, to undertake integrity compliance training. If the conditions for release are not met at the end of the minimum period of sanction, the sanction will continue until such time as they are met. Uncontested SDO Determinations and Sanctions Board Decisions are published in full and are available publicly. Furthermore, the World Bank maintains a public list of debarred entities.
Source:World Bank, https://www.worldbank.org/en/about/unit/integrity-vice-presidency; https://www.worldbank.org/en/about/unit/sanctions-system; https://www.worldbank.org/en/about/unit/sanctions-system/sanctions-board
