U.S. Senator Dick Lugar has urged development banks to “make greater use” of criminal prosecution for firms and individuals committing fraud and corruption in aid-financed activities.
“A criminal prosecution sends a strong message that the banks do not tolerate corruption, and has an important deterrent effect,” Lugar said in a Dec. 7 statement.
He noted that development banks, including the World Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development and Inter-American Development Bank, employ different processes for referring corruption cases to national authorities for criminal prosecution.
“I urge the banks to work together to find ways to make greater use of prosecutions where appropriate,” Lugar said. “Vigor and consistency across the banks will enhance all their efforts in fighting the scourge of corruption.”
In April, the five development banks forged an agreement to jointly blacklist and debar companies and consultants found to have defrauded aid-financed projects.