Multilateral Development Banks (“MDBs” – also known as “IFIs” or International Financial Institutions ), such as the African Development Bank (AfDB), the Asian Development Bank (ADB) and the World Bank Group, are international governmental organisations created by treaties. Those treaties ordinarily specify that the MDBs are obliged to ensure that the money they lend or donate arrives at its intended destination untouched by fraud, corruption, and other sanctionable practices.
The MDBs achieve this primary integrity objective by each establishing counter-corruption offices, such as the Integrity Vice Presidency (INT) at the World Bank and the Office of Anticorruption and Integrity (OAI) at the ADB, whose responsibility it is to investigate and prosecute – within the sanctions regimes operated by them – those companies and individuals who are suspected of engaging in sanctionable practices (i.e. fraudulent, corrupt, coercive, collusive or obstructive practices, or other integrity violations) on bank-financed projects:
e.g., OAI at the ADB will investigate a company suspected of paying a bribe on an ADB-financed project in order to secure a contract from the state to which the Bank lent money. If sufficient evidence exists to support an accusation that the company engaged in a corrupt practice, then OAI will commence sanctions proceedings within its sanctions mechanism.
Companies and/or individuals found guilty of engaging in a sanctionable practice (e.g., by the World Bank’s Sanctions Board on a case brought before it by INT) face debarment for a specified period, which means that during that period, the company and/or individual is prohibited from bidding for contracts on projects funded by that MDB and – because of cross debarment – any other MDB. As well as debarment, the entity or person found guilty of engaging in a sanctionable practice on an MDB-financed project risks being referred to law enforcement by the relevant bank for further investigation and possible prosecution.
Barristers within Pavocat Chambers have extensive knowledge and experience in defending companies and individuals accused by the various MDBs of engaging in sanctionable practices. For example, Lee Marler, who leads Pavocat Chambers MDB Sanctions Practice Group, has for decades both prosecuted on behalf of the MDBs and defended against them. He has gravitas and standing in this field – having previously led operations at the EBRD in London and the World Bank’s INT in Washington DC – and has been involved in some of the largest cases ever brought by the MDB community. Lee enjoys an enviable and well-deserved reputation as a top-tier global MDB sanctions practitioner.
“A true ‘heavy weight’ in the MDB world and a highly effective attorney, whether he is prosecuting for the Banks or defending against them. Lee is one of the limited lawyers of choice.”
Leonard McCarthy
The World Bank Group’s Vice President, Integrity (2008-2017)
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