ADB sanctions 42 firms,38 people for corruption

The Asian Development Bank (ADB) has imposed sanctions against 42 companies and 38 people found to have engaged in corrupt practices while implementing ADB-financed projects last year.

In a report released on Monday, the ADB’s Office of Anti-corruption and Integrity (OAI) also revealed that 57 firms and 51 people were barred from seeking ADB-financed contracts as part of a cross-debarment agreement it forged with four other multilateral development banks.

“At a time when many new donors are implementing austerity measures, those entrusted with development have an obligation to use a steadily declining pool of development funds,” said Clare Wee, head of ADB’s OAI.

“When development funds are diverted or misused, people with real needs are deprived of basic services, rights and opportunities,” Wee said.

OAI reported that it received a record high of 240 complaints and opened 114 new investigations in 2012.

The bulk of the complaints, ADB said, involved fraudulent misrepresentations about qualifications, experience, and technical capabilities of consulting firms, contractors and individuals seeking work from the ADB.

The Manila-based lender said it has “zero tolerance” for corruption and has toughened measures to battle fraud and corruption last year.

In 2012 OAI piloted project procurement-related spot reviews aimed at strengthening project monitoring and compliance. The reviews provide “hands-on” support and skills transfers to ADB’s operations departments to improve project supervision and ensure projects fully deliver their intended development outcomes.

To prevent fraud and corruption in ADB projects, OAI provides substantial support and advice to management and project teams on issues relating to integrity, money laundering and financing of terrorism risks, particularly for its public and private-sector projects. –Jennifer A. Ng / Reporter, Businessmirror