“IDB bans American company”

inter-american-development-bank-logo

An American company involved in Inter-American Development Bank (IDB) projects in Barbados has been slapped with a four year ban by the financier.

The bank today announced the debarment of GL Systems LLC and said the decision was “in connection with allegations of prohibited practices in three IDB-financed activities” − the Programme for the Modernisation of Customs, Excise and VAT Areas in Barbados; the Barbados Competitiveness Programme and an IDB corporate procurement contract.

Under the IDB’s rules, debarred firms “are declared ineligible to be awarded and participate in any IDB-financed contract for the periods indicated”, in this case four years.

“This is the IDB’s first debarment resulting from a Negotiated Resolution Agreement, which was negotiated and entered into by the IDB’s Office of Institutional Integrity, in accordance with the IDB Group’s Sanctions Procedures,” the IDB said.

“GL Systems entered into the Settlement Agreement on behalf of itself and the custom software product lines of the business formerly known as GreenLine Systems, Inc. and A-T Solutions, Inc.”

The IDB said the Settlement Agreement “provides for a reduced period of debarment in light of GL Systems’ cooperation, including an internal investigation conducted on its behalf”.

It added: “Under the terms of the Settlement Agreement, GL Systems commits to retain an independent third-party consultant in order to analyse its compliance programme and identify any gaps with internationally recognised standards, and to address any existing deficiency.”

It also said the debarment “may be extended to seven years if GL Systems fails to comply with this commitment or other terms of the settlement”.

The IDB also explained that the ban instituted on GL Systems “qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010”. (PR/SC)