To eliminate corruption in its projects, multilateral lender Asian Development Bank (ADB) has taken a number of steps, including blocking 37 firms and 47 individuals, last year, a report today said.
"In 2010, OAI received 188 new complaints, and investigations resulted in the debarment of 37 firms and 47 individuals", a report by its internal watchdog, the Office of Anticorruption and Integrity (OAI) said.
In April 2010, ADB, African Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and the World Bank signed an agreement to mutually enforce each other’s debarment actions on a prospective basis. This is known as cross-debarment.
When the agreement came into force, entities or individuals debarred by one multilateral development bank (MDB) for more than one year risk similar treatment by the other MDBs.
ADB also introduced comprehensive guidelines to protect its staff who report instances of suspected bribery and fraud last year.
Five procurement-related reviews were carried out around the region to verify that ADB financing was being used for the intended purposes, the report said.
Besides, a mandatory staff training course on anti-corruption was introduced and an Internet portal launched, to provide government officials of ADB's developing member countries like India access its full list of sanctioned groups and individuals.
"These are serious steps we have taken to help reduce fraud, raise awareness about potential irregularities in project implementation, and to increase understanding of ADB's anti-corruption efforts," Peter E Pedersen, Head of OAI said.
In 2009 and 2010, the OAI had conducted project procurement–related reviews (PPRR), including a multi-sector project for infrastructure rehabilitation for Jammu and Kashmir.
"ADB and DMCs (developing member countries) are expected to fully consider and address PPRR-identified issues, risks, and recommendations for the remainder of the projects and when designing similar future projects", the OAI report said.
PPRRs identify red flags, which are indicators that ADB’s Anti-corruption Policy may have been violated.
These include unfair and/or uncompetitive procurement practices, premature deterioration of construction works, significant delays in contract completion, and irregularities in documentation, etc.
