EBRD announces settlement with Spanish company Applus Norcontrol

• EBRD and Applus Norcontrol reach settlement regarding fraud in EBRD-financed project
• Sanction comprises a 13-month debarment
• Settlement reduces debarment period to reflect Applus Norcontrol’s admission of responsibility, cooperation and other mitigating factors

The European Bank for Reconstruction and Development (EBRD) has debarred Spanish company Applus Norcontrol S.L.U. and its 17 subsidiaries for 13 months in connection with a fraudulent practice relating to a real-estate project in Serbia.

The project involves the construction and expansion of business facilities for science, technology and innovation parks in Serbia. After a competitive selection process, the EBRD engaged Applus Norcontrol to perform procurement and technical due diligence for the project.

An investigation by the EBRD’s Office of the Chief Compliance Officer (OCCO) determined that Applus Norcontrol, through one of its employees, arranged for the engagement and payment of an unapproved key expert, despite the Bank’s prior objection to it.

The settlement agreement provides for a reduced sanction in light of several mitigating factors, including admission of responsibility, cooperation with OCCO, an internal investigation and prompt internal disciplinary action taken against the responsible individual. The company is also implementing a comprehensive compliance action plan, developed with external advisers, to prevent future misconduct.

The debarment makes Applus Norcontrol and its 17 subsidiaries ineligible to participate in projects and operations financed by the Bank for 13 months.

The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on 9 April 2010.

About OCCO

OCCO plays a central role in the EBRD’s commitment to integrity through its mandate to investigate prohibited practices in EBRD-financed projects. More information on OCCO’s broader mandate and the EBRD’s sanction system is available on our website.