How can your organization get re-listed after being debarred?

CANBERRA — When news broke of the World Bank’s decision to debar five subsidiaries of SMEC for bribery and misrepresentation in a number of World Bank-financed projects, it raised questions among private sector development partners about what an organization can do to get re-listed. SMEC is hardly the only organization to be made ineligible to bid for World Bank projects. As of October 19, a total of 990 firms were listed as ineligible — 102 of them permanently. For those permanently debarred, getting re-listed is not an option. The case of the SMEC subsidiaries, which were only temporarily debarred, shows some other options for large companies. While five subsidiaries were debarred, other arms of the operation were not. This enables SMEC to continue bidding for projects. For those unable to continue bidding through another arm of the business, there is important advice to follow on reducing the sanctions and ensuring that once the minimum debarment period is complete, the organization can be re-listed. Devex spoke with Clare Wee, head of the Office of Anticorruption and Integrity at the Asian Development Bank for her tips and advice. Can the sanctions period imposed on an individual or firm be reduced after it has taken effect? According to Wee, it is possible to reduce sanctions — depending on circumstances. “This depends on when the request for reduction is made,” she said. “If it is made as part of the appeal of sanction, it is possible. Assuming that the criteria for appeal is met, then the Sanction Appeals Committee may decide that circumstances exist for reconsideration of the term of the sanction. If it is after the appeal period, then it is highly unlikely that a sanction could be reduced. Nevertheless, if circumstances arise that the sanction becomes a miscarriage of justice, OAI could submit the case for reconsideration to the Integrity Oversight Committee.” But the likelihood of getting sections reduced is very low. When asked if any firms or individuals reinstated by the ADB had their sanctions reduced, Wee said they had not. So far the ADB has only taken one individual off its sanctions list. What should debarred organizations and firms to ensure reinstatement? Wee said it was important for debarred organizations to demonstrate a change in culture away from corrupt practices to ensure their reinstatement following debarment. First, she recommended that organizations not engage in any integrity violations during the sanctions periods. Further action calling the integrity of the organization or firm into question will likely see debarment periods extended. Second, organizations and firms should work on instituting good corporate governance practices. It is important that the culture be changed and that all members of the operation understand that corruption and inappropriate business activities are not acceptable. Operations and engagement need to be open and transparent. Staff need to be trained on how to combat corruption, with strong leadership from the top down. And it is important for organizations to demonstrate that they have processes and procedures in place to identify and respond to any business practises that raise concerns of corruption. Third, Wee recommended that organizations and firms closely follow the ADB’s procurement guidelines and other applicable rules. “Where in doubt, consult OAI,” she said. And all requirements associated with sanctions should be followed closely to ensure the sanctioning organization is confident that trust can be rebuilt and a new partnership formed following the conclusion of the period of ineligibility. Devex delivers cutting-edge insights and analysis to the leaders shaping and innovating the business of development. Make sure you don't miss out. Become a Devex Executive Member today.