CDB sanctions firms and individuals who have engaged in fraud, corruption, collusion, coercion, interference with investigations/obstructive practices and other similar wrongdoing, in violation of CDB’s policies, procedures, and guidelines. Such wrongdoing is known collectively as Prohibited Practices. Sanctions help to ensure accountability of wrongdoers and deter wrongdoing.
ICA conducts administrative investigations pursuant to CDB’s Strategic Framework for Integrity, Compliance and Accountability. Sanctions are agreed or imposed by an independent Sanctions Officer or Sanctions Committee pursuant to this administrative process that includes opportunities for the firms and individuals being investigated to respond to the allegations and cooperate with the investigation. Pursuant to the CDB Sanctions Manual and Procedures, sanctions may be:
a. agreed and imposed after a negotiated settlement agreement between CDB and a firm or individual at their request; or
b. imposed by a Sanctions Officer/Committee after reviewing mitigating and aggravating factors among other things.
Sanctions may include a reprimand, suspension of a contract or project, rejection of a recommendation for an award, demand for withdrawal, demand for the early repayment or reimbursement of financing, cancellation of undisbursed financing and/or recovery of any funds already disbursed, suspension of disbursements and/or recovery of any funds already disbursed, audits, conditional non-debarment, debarment with conditional release; debarment for a fixed period; permanent debarment, restitution and other financial remedies, and settlement. In addition to enforcing a Sanction imposed by a Sanctions Officer or a Sanctions Appeal Officer, ICA will also pay due regard to Persons who are debarred under cross-debarment agreements made among MDBs and may consider and/or adopt them accordingly and take appropriate action to protect the Bank from the risks posed by sanctioned Persons.
All the firms and individuals on CDB’s Sanctions List who are debarred are ineligible to participate in or be awarded a contract in CDB-financed projects and operations until the expiration of their respective debarment periods or in accordance with the terms of their negotiated agreement or settlement.
SANCTIONS STATEMENTS AND PRESS RELEASES
The Caribbean Development Bank (CDB) has imposed a debarment, for a term of six years, on Shandong Luqiao Group Co. Ltd (SLG), a road and bridge construction company based in Shandong, China, and on Mr. Alex Li, an agent. The sanction also applies to the Shandong Luqiao Construction Co. Ltd, an SLG affiliate, and its principals Mr. Zhang Jian, and Mr. Zhang Baotong.
The debarment arises from an attempted corrupt practice related to the procurement process for a CDB project.
The individuals and entities debarred are not eligible to participate in projects and operations financed by CDB from March 15, 2023, until March 14, 2029.