ADB sanctions 80 firms, individuals in 2012

MANILA, Philippines – The Asian Development Bank (ADB) sanctioned 80 firms and individuals in Asia Pacific for engaging in fraudulent transactions and other corrupt practices in projects the Manila-based multilateral development bank financed in 2012. 

In a report released on Monday, March 4, the ADB’s Office of Anti-corruption and Integrity (OAI) said it sanctioned a total of 42 firms and 38 individuals in 2012. This was based on a total of 240 complaints and 114 new investigations. 

“At a time when many donors are implementing austerity measures, those entrusted with development mandates have an obligation to use a steadily declining pool of development funds. When development funds are diverted or misused, people with real needs are deprived of basic services, rights, and opportunities,” ADB OAI Head Clare Wee said. 

When firms and individuals are sanctioned by the ADB, they are not allowed to participate in any activity financed by lender. The minimum sanction for integrity violations is 3-year debarment. 

But the ADB Integrity Oversight Committee may impose greater or lesser sanction depending on the circumstances of each case.

• First debarments, including cases where a party has previously been given a reprimand:
• individuals : 1 year to indefinite
• firms: 1 to 7 years
• Second debarments:
• individuals: indefinite
• firms: up to 10 years
• Subsequent debarments:
• individuals: indefinite
• firms: up to 20 years

2 Pinoy firms ineligible

As of February 2013, the ADB said a total of 590 firms and 523 individuals were declared ineligible to participate in ADB-financed activities. 

This included all the 80 firms and individuals sanctioned by the bank in 2012 as well as the 108 firms and individuals barred from participating through a cross debarment agreement with other Multilateral Development Banks (MDBs).

Firms that are publicly debarred by one MDB will also be barred from participating in activities sponsored by other MDBs that signed the agreement.

There were two Philippine firms and one Filipino among those debarred by ADB. The firms were Alex Pamatong Trading and Construction (barred until January 31, 2017), and Mandala Agricultural Development Corp. (barred indefinitely). The owner of the first firm, Alex Pamatong, was also barred indefinitely.

In April 2012, the ADB and other MDBs such as the World Bank, African Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank Group, agreed to implement cross debarment for firms found guilty of corruption, fraud, and other violations in projects. 

The agreement between the MDBs became effective for ADB in June 2010 and IDB in May 2011. – with reports from Cai Ordinario/Rappler.com