1. 2nd GLOBAL PROCUREMEREMENT CONFERENCE
Tor Vergata University
Rome
Debarment in Public Procurement
MDB perspective
Jan Jackholt
Procurement Director
European Bank for Reconstruction and Development

2. European Bank for Reconstruction and Development
International financial institution, established in 1991, promotes transition to market economies in 34 countries from Central Europe to Central Asia
In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia and Jordan (SEMED Region - Southern and Eastern Mediterranean)
Owned by 65 countries and two inter-governmental institutions
Capital base of €30 billion
AAA credit rating by Standard & Poor's, Fitch and Moody's

3. European Bank for Reconstruction and Development

4. European Union:
from 1 (Denmark) to 75 (Bulgaria)
EBRD countries of operations:
from 23 (Estonia) to 156 (Uzbekistan)
*out of 176 countries

5. EBRD PROCUREMENT POLICIES & RULES
Key principles: (Articles establishing the Bank)
economy
efficiency
non-discrimination
transparency and accountability

6. MDB’s and Fraud and Corruption history
In the 1980s and early 1990s, the MDBs, by-and-large, adopted a passive approach, considering corruption to be a matter for national enforcement authorities to investigate and prosecute
The World Bank Guidelines included in 1996 for the first time a paragraph on Fraud and Corruption
EBRD amended the PP&R in 1995 to include UN Chapter VII and in 1997 to include Fraud and Corruption

7. MDBs and Fraud and Corruption
Constraints:
The Bank is not a party to the contract financed
Audit of contractors account by the Bank can only happen if the contract allows for it.
MDBs makes procurement decisions based on information provided by the client and the client on information provided by the tenderer.
The Bank’s role is to provide financing. The range of “punishment” for misprocurement is limited.
Many allegations, but difficult to prove.

8. EBRD and Fraud and Corruption
Prevention and detection:
Project planning
The use of Standard Tender Documents
Prior review of all key stages
Implementation support
Restrict direct contracting
Restrict negotiations
Restrict subjective evaluation criteria
Open eligibility, no restrictions to participate
Third party review of qualification criteria and specifications
Independent reviews during and after contract implementation
EBRD Procurement complaints mechanism.

9. Some thoughts
No procurement process is immune to fraud and corruption.
Transparency also have drawbacks but the benefits outweigh.
Third party monitoring more efficient than perfect procedures in writing.
E-procurement is excellent in preventing process mistakes but not to stop F&C.
Procurement is more often tainted by the purchasers need to satisfy the political context or by poor practicies than F&C
Is it fraud or a mistake?

10. Grazie! THANK YOU VERY MUCH!
European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom
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