SNC 56

The Office of Institutional Integrity (the “OII”) submitted a Statement of Charges and Evidence against two Respondent Firms and one Individual Respondent (the “Principal Respondents”) in connection with these parties’ participation in a procurement process organized by the Tourism Development Program of Sergipe. The OII argued that the Principal Respondents had engaged in corrupt and fraudulent practices in the context of the Program referred, which consisted respectively of (i) paying bribes to a public official from the executing agency to influence the outcome of the procurement process and the resulting public contracts; and (ii) delivering non-conforming goods and concealing this fact in invoices and other official documents relating to the transactions in question. Furthermore, the OII submitted evidence that the subject of this sanction (Respondent Affiliate) was the mother of the Individual Respondent, controlling shareholder of one of the Respondent Firms and shareholder of another affiliate together with the Individual Respondent. The OII argued that the existence of this close connection warranted the extension of sanctions to the Respondent Affiliate under Section 8.3 of the Sanctions Procedures. 

Following the issuance of the Notice of Administrative Action by the Sanctions Officer, the Principal Respondents and the Respondent Affiliate refuted all charges brought by OII. The Sanctions Officer issued a Determination finding that it was more likely than not that the Principal Respondents had engaged in corrupt and fraudulent practices and imposed sanctions of debarment. The Sanctions Officer’s Determination provided also for the extension of the sanctions to the Respondent Affiliate, as well as other companies and individuals, under Section 8.3 of the Sanctions Procedures.

In accordance with the Sanctions Procedures, the Principal Respondents and the Respondent Affiliate appealed the Sanction Officer’s Determination before the Sanctions Committee, contesting the underlying charges as well as the level and extension of the sanctions imposed.

Following a de novo review of the record, the Sanctions Committee imposed sanctions of debarment on the Principal Respondents for involvement in corrupt and fraudulent practices. Under Section 8.3 of the Sanctions Procedures, the Committee extended sanctions to the Respondent Affiliate, imposing a reprimand.