Development banks formalize joint corruption campaign

Leading multilateral banks have formalized April 9 an agreement to jointly blacklist and debar companies and consultants found to have engaged in corrupt practices in bank-financed development projects.

Under the new accord, firms and individuals banned or sanctioned by the one of the participating development banks - the World Bank, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and the Inter-American Development Bank - can be cited for the same wrongdoing by any of these institutions.

“With today’s cross debarment agreement among development banks, a clear message on anticorruption is being delivered: Steal and cheat from one, get punished by all,” World Bank Group President Robert B. Zoellick said during the signing event hosted by the European Investment Bank.

Zoellick added: “This accord also underscores to our member governments that scarce development financing goes where it is intended.”

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  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.