Confusion shrouds fate of IBF International Consulting's EU work
A sanctions notice published by mistake on the European Commission's website in February was quickly removed.
By Vince Chadwick // 14 May 2020BRUSSELS — The European Commission says it will publish more information “in the coming days” as confusion shrouds a prematurely announced sanction against IBF International Consulting, one of its largest contractors. In early February a notice appeared briefly on the commission’s website for framework contracts, which covers offers to bid for development-related work, but the notice was later removed from the site. “By decision of 22/01/2020 - notified to IBF International Consulting SA on 24.1.2020 - IBF shall be excluded from participating in award procedures for public procurements and grants governed by the EU General Budget for a duration of 18 months,” the note read. “It is therefore not allowed to sign any specific contracts funded under the EU General Budget with IBF International Consulting SA, framework contractor for lots 3 and 4 under FWC SIEA 2018, and for lot 3 under FWC COMMISSION 2015.” A framework contract, or FWC, is an umbrella contract between the commission and groups of development organizations, organized into thematic areas, or “lots.” A source familiar with the matter told Devex that the decision was made on the basis of Article 136(1)(c)(v) of the EU’s Financial Regulation: “attempting to obtain confidential information that may confer upon it undue advantages in the award procedure.” An EU official told Devex in writing on March 13 that the notice “relates to a decision concerning the exclusion of an economic operator taken by DG NEAR [the commission department responsible for relations with countries in the EU’s neighborhood], and subsequently erroneously made public for a few hours on the DG DEVCO [the development department] website.” “According to the Financial Regulation Article 140.1, the decision to publish the information shall take effect three months after its notification to the entity concerned,” the official wrote, adding that “the main elements of the sanction (name and country of the entity, grounds and duration of the exclusion)” would be published on a separate commission website at the end of April. On May 7, an EU official told Devex in writing that “due to delays caused by the ongoing COVID-19 crisis, the information will be published in the coming days on the website previously indicated.” At the time of publication, the information was yet to appear. The commission declined to comment Wednesday on whether the decision to exclude IBF, which it erroneously publicized in February, is final, whether any appeal is underway, and whether it is possible that the details of the decision will not be published at all. The site, where the commission says the main elements of the sanction will be published, lists the types of wrongdoing that can attract administrative sanctions that are published. The list includes “grave professional misconduct,” one example of which in the Financial Regulation is “attempting to obtain confidential information that may confer upon it undue advantages in the award procedure.” The Financial Regulation adds that the decision on whether or not to publish the sanction is based on a consideration of the “seriousness of the situation, including the impact on the Union's financial interests and image, the time which has elapsed since the relevant conduct, its duration and its recurrence, the intention or degree of negligence, the limited amount at stake,” and “in line with the protection of personal data.” IBF declined to comment publicly for this story. On its website, IBF cites an annual turnover of between €20 million ($21.6 million) and €25 million, with 70 full-time staff and more than 250 experts in the field. According to recent data on the EU framework contracts, IBF was awarded 42 contracts worth €7.5 million between June 2018 and June 2019. More than half of those were of global scope and most were for evaluations and technical assistance. Founded in Belgium in 1977, IBF works on “development aid projects financed by international organisations such as the European Commission, the World Bank, the Asian Development Bank, as well as by the Belgian Cooperation, AusAid and DFID, both in developing and transitional economies,” the website explains. “IBF has built a solid reputation for its knowledge, flexibility, reliability, as well as the ability to successfully implement projects within its core sectors: economic development, trade and regional integration, educational and social reforms, institutional support, consumer protection and framework contracts.” Update, May 14: This story was amended to include additional information. To contact this reporter, email vince.chadwick@devex.com.
BRUSSELS — The European Commission says it will publish more information “in the coming days” as confusion shrouds a prematurely announced sanction against IBF International Consulting, one of its largest contractors.
In early February a notice appeared briefly on the commission’s website for framework contracts, which covers offers to bid for development-related work, but the notice was later removed from the site.
“By decision of 22/01/2020 - notified to IBF International Consulting SA on 24.1.2020 - IBF shall be excluded from participating in award procedures for public procurements and grants governed by the EU General Budget for a duration of 18 months,” the note read. “It is therefore not allowed to sign any specific contracts funded under the EU General Budget with IBF International Consulting SA, framework contractor for lots 3 and 4 under FWC SIEA 2018, and for lot 3 under FWC COMMISSION 2015.”
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Vince Chadwick is a contributing reporter at Devex. A law graduate from Melbourne, Australia, he was social affairs reporter for The Age newspaper, before covering breaking news, the arts, and public policy across Europe, including as a reporter and editor at POLITICO Europe. He was long-listed for International Journalist of the Year at the 2023 One World Media Awards.