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Matteson Ellis Comments on World Bank's Enforcement Approach in Global Investigations Review

"World Bank's Enforcement Approach Needs Review, Say Lawyers"

Global Investigations Review

Matteson Ellis commented on multilateral development banks' use of debarment as a default enforcement resolution for companies that commit fraud in MDB-financed projects. The World Bank's general approach to companies that violate its rules is a multi-year conditional debarment. This approach can be detrimental to a business given the prospect of cross-debarment by other development banks. At the same time, some development banks are moving away from debarment-only resolutions. According to Ellis, the Inter-American Development Bank (IDB) is more "commercially focused" when considering the appropriate enforcement resolution. He stated when contemplating debarment, the IDB will consider whether it wants to continue a business relationship with the company.