MANILA, Philippines - China-led Asian Infrastructure Investment Bank (AIIB) has adopted the list of companies and entities banned and sanctioned by five major multilateral development banks (MDBs) from participating in its projects and obtaining financial assistance.
In a recent announcement on its website, AIIB said it adopted the list of sanctioned and debarred firms under the Agreement for Mutual Enforcement of Debarment Decisions (AMEDD) effective March 1, 2017 in line with “solidifying its anti-corruption policies.”
“This means close to a thousand entities that have been debarred by five other leading multilateral development banks are also now debarred by the AIIB, as set out in the bank’s policy on prohibited practices,” AIIB said.
These pertain to practices proven to have been “fraudulent, corrupt, collusive and coercive” in nature as well as those proven to have resulted to “obstruction, theft, and misuse of resources.”
“Firms and individuals who engage in any of these practices can be sanctioned by AIIB. Sanctions include barring a firm or an individual, either permanently or for several years, from participating in AIIB projects,” said the bank.
Cross debarment of firms that engaged in fraudulent and corrupt practices while participating in MDB-financed development projects was agreed upon by the Asian Development Bank, World Bank, African Development Bank, Inter-American Development Bank and the European Bank for Reconstruction and Development.