AMENDMENTS TO RULES AND PROCEDURES FOR THE PROCUREMENT OF

GOODS AND WORKS AND RULES AND PROCEDURES

FOR THE USE OF CONSULTANTS

I. INTRODUCTION

1.1 On 7 September 2006, the African Development Bank Group (the “Bank”), as a
member of the International Financial Institutions (“IFI”) Anti-Corruption Task
Force, signed the Uniform Framework for Preventing and Combating Fraud and
Corruption (the “Framework”) which comprises Principles and Guidelines for
Investigations.1

1.2 In furtherance of the principles of the Framework, and confirming the importance of
establishing a system for mutual recognition of enforcement actions, the Bank,
together with the World Bank, the European Bank for Reconstruction and
Development, the Asian Development Bank, and the Inter-American Development
Bank (each a “Participating Institution”, collectively the “Participating
Institutions”), signed, on 9 April 2010, the Agreement for Mutual Enforcement of
Debarment Decisions (“CDA”). The Participating Institutions recognize that a unified
and coordinated approach is critical to the success of the shared effort to fight
corruption and prevent it from undermining the effectiveness of their work. As a
consequence of the CDA, each Participating Institution is required to enforce
debarment decisions made by another Participating Institution, in accordance with the
terms and conditions set out therein.

1.3 To enable the implementation of the terms and conditions outlined in the CDA,
further amendments are required to the Bank’s Rules and Procedures for the
Procurement of Goods and Works (the “Procurement Rules”) and the Rules and
Procedures for the Use of Consultants (the “Consultant Rules“), both of which were
substantially revised in 2008.

II. SUMMARY OF THE PROPOSED AMENDMENTS

2.1 Three core principles have guided the proposed revisions of the Procurement Rules
and the Consultant Rules (collectively referred to as the “Rules”):

(a) The need to translate the relevant terms and conditions of the CDA into the
Rules;
(b) The need to uphold and execute the fiduciary provisions of the Agreements
establishing the African Development Bank, the African Development Fund and
the Nigeria Trust Fund; and
(c) Harmonization with the rules of other multilateral institutions.

2.2 The proposed amendments in the Consultant Rules (Annex I) and the Procurement
Rules (Annex II) are summarized as follows:
1
The Boards of Directors were informed thereof by an Information Note ADB/BD/IF/2006/231 and ADF/BD/IF/2006/202, dated 5
September 2006.
 2

(a) The eligibility criteria provisions (Rule 1.11 (e) Consultant Rules and Rule 1.8 (d)
Procurement Rules) have been amended (i) to make reference to the Bank’s
sanctions procedures, including the Proposal for the Implementation of a
Sanctions Process within the African Development Bank Group and the Bank’s
Whistleblowing and Complaints Handling Policy, which will be disclosed on the
Bank’s external website; and(ii) to allow for firms and individuals sanctioned by
the Bank or other Participating Institutions, to be declared ineligible to be awarded
a Bank-financed contract, or to benefit from a Bank-financed contract, financially
or in any other manner.

(b) The misprocurement provisions (Rules 1.17 Consultant Rules and Rule 1.12
Procurement Rules) have been amended to allow for the Bank to declare
misprocurement and apply in full its policies and remedies in cases where the
Borrower or beneficiaries of the Bank financing are engaged in fraud and
corruption, regardless of whether the loan has closed or not.

(c) The fraud and corruption provisions (Rule 1.22 Consultant Rules and Rule 1.14
Procurement Rules) have been amended to:

(i) refer to the Bank’s sanctions procedures, including cross-debarment as per

the CDA or as otherwise decided by the Bank, and to make it clear that
individuals and firms may be publicly declared ineligible;
(ii) include ‘obstructive practice’ as a new sanctionable offence. This is
intended not just to serve as a deterrent measure, but most importantly, to
further enhance the efficiency of investigations, as well as facilitate access
to information and records; and
(iii) extend the obligations under this provision to the consultant’s and bidder’s
personnel, agents, sub-consultants, sub-contractors, service providers,
suppliers, and their employees.

(d) A new Section 9 has been introduced in Appendix 1 to the Rules, setting forth the
Borrower’s and the Bank’s obligations to ensure adequate due diligence during
the selection process before award of a contract, and the supervision and
monitoring of any on-going contracts executed by a firm or an individual which
has been sanctioned by the Bank after such contract was signed.

(e) A new paragraph has been introduced under Section 13 in Appendix 3 regarding
(i) the treatment of communication received from bidders and consultants
involving allegations of fraud and corruption; and (ii) reporting tools for suspected
fraud and corruption.

2.3 The proposed amendments are substantially consistent with the rules of other
Multilateral Development Institutions, and thereby fulfill the Bank’s commitment to
harmonize its Rules with those of other Participating Institutions.

2.4 These amendments will enable the application by the Bank of the sanctions of other
Participating Institutions. Upon implementation of planned changes to the Bank’s
sanctions and investigations procedures to meet the CDA’s requirements, the Bank’s
sanctions will also be applied by other Participating Institutions.
 3

III. CONCLUSION

The Boards of Directors are therefore invited to approve the proposed amendments to
the Rules and Procedures for the Procurement of Goods and Works and the Rules and
Procedures for the Use of Consultants.
 Annex I
Amendments to Rules and Procedures for Use of Consultants

Current Provision Proposed Amendment Comment

Article 1.4 (General Consideration) 1.4(c):

“the need to give all qualified consultants an “the need to give all eligible consultants an opportunity to compete in providing the services financed by the Improvement in
opportunity to compete in providing the services Bank.” formulation.
financed by the Bank.”
Eligibility (1.11). Article 1.11(d):

“A firm declared ineligible by the Bank in “A firm or an individual sanctioned by the Bank in accordance with subparagraph (d) of paragraph 1.22 of Clarification
accordance with subparagraph (d) of paragraph these Rules or in accordance with the Bank’s policies on anti-corruption and fraud and the Bank’s concerning the scope
1.22 of these Rules or in accordance with the sanctions procedures [FN13] shall be ineligible to be awarded a Bank-financed contract or to benefit of sanctions
African Development Bank Group Anti- from a Bank-financed contract, financially or in any other manner, during such period of time as the applicable to firms
Corruption and Fraud policies shall be ineligible Bank shall determine. and individuals.
to be awarded a Bank-financed contract during
such period of time as the Bank shall
determine.” [Footnote (FN) 13] See the Proposal for the Implementation of a Sanctions Process within the African Insertion of reference
Development Bank Group and the Bank’s Whistleblowing and Complaints Handling Policy. The to Bank policies.
Bank’s sanctions procedures are publicly disclosed on the Bank’s external website.”
Misprocurement (1.17):

“The Bank does not finance expenditures for “The Bank does not finance expenditures under a contract for consulting services if the Bank concludes Improvement in
consulting services if the consultants have not that such contract: (a) has not been awarded in accordance with the agreed provisions of the Financing formulation.
been selected or the services have not been Agreement and as further elaborated in the Procurement Plan [FN16] to which the Bank provided no
contracted in accordance with the agreed objection; (b) could not be awarded to the consultant otherwise determined successful due to willful New provision to
provisions of the Financing Agreement and the dilatory conduct or other actions of the Borrower resulting in unjustifiable delays, or the successful cover cases where the
Procurement Plan [FN16] approved by the proposal being no longer available, or the wrongful rejection of any proposal; or (c) involves the best ranked candidate
Bank. In such cases, the Bank will declare engagement of a representative of the Borrower, or a recipient of any part of the proceeds of the is no longer valid as a
misprocurement, and it is the Bank’s policy to Financing, in fraud and corruption as per paragraph 1.22(c). In such cases, whether under prior or result of unjustified
cancel that portion of the Financing allocated to post review, the Bank will declare misprocurement, and it is the Bank’s policy to cancel that portion of the delays by the
the services that have been misprocured. The Financing allocated to the services that have been misprocured. The Bank may, in addition, exercise other Borrower.
Bank may, in addition, exercise other remedies remedies provided for under the Financing Agreement. Even once the contract is awarded after obtaining a
provided for under the Financing Agreement. no objection from the Bank, the Bank may still declare misprocurement and apply in full its policies and Bank’s right to declare
Even once the contract is awarded after remedies regardless of whether the loan has closed or not, if it concludes that the no objection was misprocurement and
obtaining a "no objection" from the Bank, the issued on the basis of incomplete, inaccurate, or misleading information furnished by the Borrower or that apply sanctions in
Bank may still declare misprocurement if it the terms and conditions of the contract had been substantially modified without the Bank’s no objection.” cases of fraud &
concludes that the "no objection" was issued on [FN16] See paragraph 1.24. corruption, regardless

the basis of incomplete, inaccurate, or
misleading information furnished by the
Borrower or that the terms and conditions of the
contract had been modified without the Bank’s
“no objection”.” [FN16] See paragraph 1.24.
Fraud & Corruption (1.22):
“It is the Bank’s policy to require that
Borrowers (including beneficiaries of Bank
Financing), as well as consultants and their
subcontractors under Bank-financed contracts,
observe the highest standard of ethics during the
selection and execution of such contracts. In
pursuance of this policy, the Bank:
(a) defines, for the purposes of this provision,
the terms set forth below as follows:
(i) "Corrupt Practice" is the offering, giving,
receiving or soliciting, directly or indirectly, of
anything of value to influence improperly the
actions of another party;
(ii) "Fraudulent Practice" is any act or omission,
including misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a
party to obtain financial or other benefit or to
avoid an obligation; (iii) "Collusive Practices" is
an arrangement between two or more parties
designed to achieve an improper purpose,
including to influence improperly the actions of
another party;
(iv) "Coercive Practices" is impairing or
harming, or threatening to impair or harm,
directly or indirectly, any party or the property
of the party to influence improperly the actions
of a party;
(b) will reject a proposal for award if it
determines that the consultant recommended for
award has, directly or through an agent,
-2-
of whether the loan
has closed or not.
“It is the Bank’s policy to require that Borrowers (including beneficiaries of Bank Financing), consultants Extension of
and their agents (whether declared or not), sub-contractors, sub-consultants, service providers or applicability of
suppliers and any personnel thereof, observe the highest standard of ethics during the selection and sanctions to
execution of Bank-financed contracts [FN21]. In pursuance of this policy, the Bank: consultants’ agents,
(a) defines, for the purposes of this provision, the terms set forth below as follows: sub-consultants,
(i) "corrupt practice" is the offering, giving, receiving or soliciting, directly or indirectly, of anything of service providers,
value to influence improperly the actions of another party [FN22]; suppliers, and
(ii) "fraudulent practice" is any act or omission, including misrepresentation, that knowingly or recklessly personnel thereof.
misleads, or attempts to mislead, a party [FN23] to obtain financial or other benefit or to avoid an
obligation;
(iii) "collusive practice" is an arrangement between two or more parties [FN24] designed to achieve an
improper purpose, including to influence improperly the actions of another party;
(iv) "coercive practice" is impairing or harming, or threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly the actions of a party [FN25];
(v) “obstructive practice” is Introduction of
(aa) deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation ‘obstructive practice’
or making false statements to investigators in order to materially impede a Bank investigation into as an additional
allegations of a corrupt, fraudulent, coercive, or collusive practice; and/or threatening, harassing or sanctionable offence.
intimidating any party to prevent it from disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation, or
(bb) acts intended to materially impede the exercise of the Bank’s inspection and audit rights
provided for under paragraph 1.22(e) below.
(b) will reject a proposal for award if it determines that the consultant recommended for award, or any of its
personnel, or its agents, or its sub-consultants, sub-contractors, service providers, suppliers and/or
their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or
obstructive practices in competing for the contract in question;
(c) will declare misprocurement and cancel the portion of the Financing allocated to a contract if it
determines at any time that representatives of the Borrower or of a recipient of any part of the proceeds of
the Financing were engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices during the
selection process or the implementation of the contract in question, without the Borrower having taken
timely and appropriate action satisfactory to the Bank to address such practices when they occur, including
by failing to inform the Bank in a timely manner at the time they knew of the practices;

engaged in Corrupt, Fraudulent, Collusive, or
Coercive, Practices in competing for the
contract in question;
(c) will cancel the portion of the Financing
allocated to a contract if it determines at any
time that representatives of the Borrower or of a
beneficiary of the Financing were engaged in
Corrupt, Fraudulent, Collusive, or Coercive
Practices during the selection process or the
execution of that contract, without the Borrower
having taken timely and appropriate action
satisfactory to the Bank to address such
practices when they occur;
(d) will sanction a consultant, including
declaring ineligible either indefinitely or for a
stated period of time, to be awarded a Bank-
financed contract if the Bank at any time
determines that the consultant has, directly or
through an agent, engaged in Corrupt,
Fraudulent, Collusive or Coercive Practices in
competing for, or in executing, a Bank-financed
contract; and
(e) will have the right to require that, in
contracts financed by the Bank, a provision be
included requiring consultants to permit the
Bank to inspect their accounts and records and
other documents relating to the submission of
proposals and contract performance and to have
them audited by auditors appointed by the
Bank.”
-3-
(d) will sanction a firm or an individual, at any time, in accordance with prevailing Bank’s sanctions Enabling provision for
procedures [FN26], including by publicly declaring such firm or individual ineligible either indefinitely cross-debarment.
or for a stated period of time, (i) to be awarded a Bank-financed contract; and (ii) to be a nominated
[FN27] as sub-consultant, supplier, or service provider of an otherwise eligible firm being awarded a
Bank-financed contract; and
(e) will require that a clause be inserted in the RFP and in contracts financed by the Bank, requiring
consultants and their agents, personnel, sub-consultants, sub-contractors, service providers, or
suppliers, to permit the Bank to inspect all accounts, records and other documents relating to the
submission of proposals and contract performance and to have them audited by auditors appointed by the
Bank.
[FN21] In this context, any action taken by a consultant or any of its personnel, or its agents, or its New footnotes inserted
sub-consultants, sub-contractors, service providers, suppliers, and/or their employees, to influence the for more precise
selection process or contract execution for undue advantage, is improper. definition of fraud,
[FN22] For the purpose of this sub-paragraph, “another party” refers to a public official acting in corruption, collusion
relation to the selection process or contract execution. In this context, “public official” includes Bank and coercion.
staff and employees of other organizations taking or reviewing selection decisions.
[FN23] For the purpose of this sub-paragraph, “party” refers to a public official; the terms “benefit”
and “obligation” relate to the selection process or contract execution, and the “act or omission” is
intended to influence the selection process or contract execution.
[FN24] For the purpose of this sub-paragraph, “parties” refers to participants in the procurement or
selection process (including public officials) attempting either themselves, or through another person
or entity not participating in the procurement or selection process, to simulate competition or to
establish contract prices at artificial, non-competitive levels, or are privy to each other’s bid prices or
other conditions.
[FN25] For the purpose of this sub-paragraph, “party” refers to a participant in the selection process
or contract execution.
[FN26] A firm or an individual may be declared ineligible to be awarded a Bank-financed contract (i) Elaborates applicable
upon completion of the Bank’s sanctions proceedings as per its sanctions procedures, including, inter sanctions procedures
alia, cross-debarment as agreed with other International Financial Institutions, including Multilateral and expressly includes
Development Banks, or otherwise decided by the Bank, and through the application of the Proposal cross-debarment.
for the Implementation of a Sanctions Process within the African Development Bank Group; and ((ii)
as a result of temporary suspension or early temporary suspension in connection with an on-going
sanctions proceeding. See footnote 13 and paragraph 9 of Appendix 1 of these Rules.
[FN27] A nominated sub-consultant, supplier, or service provider is one which has been either: (i)
included by the consultant in its proposal because it brings specific and critical experience and know-
how that are accounted for in the technical evaluation of the consultant’s proposal for the particular
services, or (ii) appointed by the Borrower.”
 -4-

Appendix 1: Review By The Bank of the Selection of Consultants and Publication of Awards of Contracts
No equivalent provision. Para. 9 of Appendix I:

“When carrying out the selection process, the Borrower shall check the eligibility of consultants from the Clarifies due diligence
lists of firms and individuals debarred and suspended, pursuant to paragraph 1.22(d) of these Rules and/or requirements before
paragraph 1.14(d) of the Procurement Rules, by the Bank that are posted on the Bank’s external website. awarding contracts.
The Borrower shall apply additional due diligence by closely supervising and monitoring any on-going
contract (whether under prior or post review) executed by a firm or individual which has been sanctioned by
the Bank after such contract was signed. The Borrower shall neither sign any new contracts nor sign an
amendment, including any extension of time for completion or a change or variation order, to an on-going
contract with a suspended or debarred firm or individual after the effective date of the suspension or
debarment without the Bank’s prior review and no objection. The Bank will only finance additional
expenditures if they were incurred before the completion date of the original contract or the completion date
as revised (i) for prior review contracts, in an amendment to which the Bank has given its no objection, and
(ii) for post review contracts, in an amendment signed before the effective date of suspension or debarment.
The Bank will not finance any new contract, or any amendment or addendum introducing a material
modification to any existing contract that was signed with a suspended or debarred firm or individual on or
after the effective date of suspension or debarment.”
Appendix 3: Guidance to Consultants

No equivalent provision New addition at the end of para. 13 of Appendix 3:

“Communication received from consultants involving allegations of fraud and corruption [FN51] may Different treatment of
warrant a different treatment due to reasons of confidentiality. In such cases, the Bank shall apply due care communication
and discretion in sharing information deemed appropriate with the Borrower. involving fraud &
corruption.
[FN 51] Reporting on suspected fraud and corruption can be done directly to the Bank’s Integrity and Anti-
Corruption Department (IACD) by email: investigations@iacd-afdb.org; through the independent third Listing of reporting
party online reporting tool at https://iwf.tnwgrc.com/afdb; or through the free 24-hour operator assisted tools.
collect call hotline service: +1(770)776-5658. Additional toll free numbers are available on the Bank’s
website http://www.afdb.org/en/about-us/structure/integrity-and-anti-corruption/anti-corruption-and-fraud-
investigation-services-contacts/ (interpreters are available, anonymous calls accepted). IACD can also be
contacted directly at its offices at the Bank in Tunis, Tunisia: +216 71-833-224. “
 Annex II
Amendments to Rules and Procedures for Procurement of Goods and Works

Current Provision Proposed Amendment Comment

Article 1.8 (Eligibility) 1.8(d):

“A firm declared ineligible by the Bank in accordance
with subparagraph (d) of paragraph 1.14 of these Rules or
in accordance with the African Development Bank Group
Anti-Corruption and Fraud Policies [Footnote (FN)18]
shall be ineligible to be awarded a Bank-financed contract
during the period of time determined by the Bank.
[FN18] African Development Bank Group Policy on
Good Governance & Whistle Blowing and Complaint
Handling Policy.”
Article 1.12 (Misprocurement) :
“A firm sanctioned by the Bank in accordance with subparagraph (d) of paragraph 1.14 of these Rules Improvement in
or the Bank’s policies on anti-corruption and fraud and the Bank’s sanctions procedures [FN18] formulation.
shall be ineligible to be awarded a Bank-financed contract, or to benefit from a Bank-financed
contract, financially or in any other manner, during the period of time determined by the Bank.
[FN18] See the Proposal for the Implementation of a Sanctions Process within the African Correction of titles of
Development Bank Group and the Bank’s Whistleblowing and Complaints Handling Policy. The Bank policies.
Bank’s sanctions procedures are publicly disclosed on the Bank’s external website.”

“The Bank does not finance expenditures for goods and
works which have not been procured in accordance with
the agreed provisions in the Financing Agreement and as
further elaborated upon in the Procurement Plan. In such
cases, the Bank will declare misprocurement, and it is the
policy of the Bank to cancel that portion of the Financing
allocated to the goods and works that have been
misprocured. The Bank may, in addition, exercise other
remedies provided for under the Financing Agreement.
Even once the contract is awarded after obtaining a “no
objection” from the Bank, the Bank may still declare
misprocurement if it concludes that the "no objection"
was issued on the basis of incomplete, inaccurate, or
misleading information furnished by the Borrower or the
terms and conditions of the contract had been modified
without the Bank’s "no objection".”
Article 1.14 (Fraud & Corruption):
“The Bank does not finance expenditures under a contract for goods and works if the Bank Improvement in
concludes that such contract: (a) has not been awarded in accordance with the agreed provisions in formulation.
the Financing Agreement and as further elaborated upon in the Procurement Plan to which the Bank New provision to cover
provided no objection; (b) could not be awarded to the bidder otherwise determined successful cases where the lowest
due to willful dilatory conduct or other actions of the Borrower resulting in unjustifiable delays, bids are no longer
the successful bid being no longer available, or the wrongful rejection of any bids; or (c) involves valid as a result of
the engagement of a representative of the Borrower, or a recipient of any part of the proceeds of unjustified delays by
the Financing, in fraud and corruption as per paragraph 1.14(c) . In such cases, whether under the Borrower.
prior or post review, the Bank will declare misprocurement, and it is the Bank’s policy to cancel that Bank’s right to declare
portion of the Financing allocated to the goods and works that have been misprocured. The Bank may, misprocurement and
in addition, exercise other remedies provided for under the Financing Agreement. Even once the apply sanctions in
contract is awarded after obtaining a no objection from the Bank, the Bank may still declare cases of fraud &
misprocurement and apply in full its policies and remedies regardless of whether the loan has corruption, regardless
closed or not, if it concludes that the no objection was issued on the basis of incomplete, inaccurate, or of whether the loan
misleading information furnished by the Borrower or the terms and conditions of the contract had been has closed or not.
substantially modified without the Bank’s no objection.”

“It is the Bank’s policy to require that Borrowers “It is the Bank’s policy to require that Borrowers (including beneficiaries of Bank Financing), bidders, Extension of
(including beneficiaries of Bank Financing), as well as suppliers, contractors and their agents (whether declared or not), sub-contractors, sub-consultants, applicability of

bidders, suppliers, and contractors and their
subcontractors under Bank-financed contracts, observe
the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy,
the Bank:
(a) defines, for the purposes of this provision, the terms
set forth below as follows:
(i) “Corrupt Practice” is the offering, giving, receiving or
soliciting, directly or indirectly, of anything of value to
influence improperly the actions of another party;
(ii) “Fraudulent Practice” is any act or omission,
including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to
obtain a financial or other benefit or to avoid an
obligation;
(iii) “Collusive Practice” is an arrangement between two
or more parties designed to achieve an improper purpose,
including to influence improperly the actions of another
party;
(iv) “Coercive Practice” is impairing or harming, or
threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly
the actions of a party;
(b) will reject a proposal for award if it determines that
the bidder recommended for award has, directly or
through an agent, engaged in Corrupt, Fraudulent,
Collusive, or Coercive Practices in competing for the
contract in question;
(c) will cancel the portion of the Financing allocated to a
contract if it determines at any time that representatives of
the Borrower or of a beneficiary of such Financing
engaged in Corrupt, Fraudulent, Collusive, or Coercive
Practices during the procurement or the execution of that
contract, without the Borrower having taken timely and
appropriate action satisfactory to the Bank to address such
practices when they occur;
(d) will sanction a firm or individual, including declaring
ineligible either indefinitely or for a stated period of time,
to be awarded a Bank-financed contract if the Bank at any
-2-
service providers or suppliers, and any personnel thereof, observe the highest standard of ethics sanctions to bidders’
during the procurement and execution of Bank-financed contracts [FN22]. In pursuance of this policy, personnel, agents, sub-
the Bank: consultants, sub-
(a) defines, for the purposes of this provision, the terms set forth below as follows: contractors, service
(i) “corrupt practice” is the offering, giving, receiving or soliciting, directly or indirectly, of anything of providers, suppliers,
value to influence improperly the actions of another party [FN23]; and employees thereof.
(ii) “fraudulent practice” is any act or omission, including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an
obligation [FN24];
(iii) “collusive practice” is an arrangement between two or more parties [FN25] designed to achieve an
improper purpose, including to influence improperly the actions of another party;
(iv) “coercive practice” is impairing or harming, or threatening to impair or harm, directly or indirectly,
any party or the property of the party to influence improperly the actions of a party [FN26];
(v) “obstructive practice” is Introduction of
(aa) deliberately destroying, falsifying, altering, or concealing of evidence material to the ‘obstructive practice’
investigation or making false statements to investigators in order to materially impede a Bank as an additional
investigation into allegations of a corrupt, fraudulent, coercive, or collusive practice; and/or sanctionable offence.
threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of
matters relevant to the investigation or from pursuing the investigation, or
(bb) acts intended to materially impede the exercise of the Bank’s inspection and audit rights
provided for under paragraph 1.14(e) below.
(b) will reject a proposal for award if it determines that the bidder recommended for award, or any of
its personnel, or its agents, or its sub-consultants, sub-contractors, service providers, suppliers
and/or their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive,
or obstructive practices in competing for the contract in question;
(c) will declare misprocurement and cancel the portion of the Financing allocated to a contract if it
determines at any time that representatives of the Borrower or of a recipient of any part of the
proceeds of such Financing engaged in corrupt, fraudulent, collusive, coercive, or obstructive
practices during the procurement or the implementation of the contract in question, without the
Borrower having taken timely and appropriate action satisfactory to the Bank to address such practices
when they occur, including by failing to inform the Bank in a timely manner at the time they knew
of the practices;
(d) will sanction a firm or individual, at any time, in accordance with the prevailing Bank’s Enabling provision for
sanctions procedures [FN27], including by publicly declaring such firm or individual ineligible cross-debarment.
either indefinitely or for a stated period of time, (i) to be awarded a Bank-financed contract; and (ii) to
be a nominated [FN28] sub-contractor, consultant, supplier, or service provider of an otherwise
eligible firm being awarded a Bank-financed contract; and
(e) will require that a clause be included in bidding documents and in contracts financed by the Bank,
 -3-

time determines that the firm or individual has, directly or requiring bidders, suppliers and contractors, and their sub-contractors, agents, personnel,
through an agent, engaged in Corrupt, Fraudulent, consultants, service providers, or suppliers, to permit the Bank to inspect all accounts, records and
Collusive or Coercive Practices in competing for, or in other documents relating to the submission of bids and contract performance and to have them audited
executing, a Bank-financed contract; and by auditors appointed by the Bank.
(e) will have the right to require that a provision be
included in bidding documents and in contracts financed[FN22] In this context, any action to influence the procurement process or contract execution for New footnotes inserted
by the Bank, a provision be included requiring bidders,undue advantage is improper. for more precise
suppliers and contractors to permit the Bank to inspect[FN23] For the purpose of this sub-paragraph, “another party” refers to a public official acting in definition of fraud,
relation to the procurement process or contract execution. In this context, “public official” includes
their accounts and records and other documents relating to corruption, collusion,
the bid submission and contract performance and to haveBank staff and employees of other organizations taking or reviewing procurement decisions. and coercion.
them audited by auditors appointed by the Bank.” [FN24] For the purpose of this sub-paragraph, “party” refers to a public official; the terms “benefit”
and “obligation” relate to the procurement process or contract execution; and the “act or omission”
is intended to influence the procurement process or contract execution.
[FN25] For the purpose of this sub-paragraph, “parties” refers to participants in the procurement
process (including public officials) attempting either themselves, or through another person or entity
not participating in the procurement or selection process, to simulate competition or to establish bid
prices at artificial, non-competitive levels, or are privy to each other’s bid prices or other conditions.
[FN26] For the purpose of this sub-paragraph, “party” refers to a participant in the procurement
process or contract execution.
[FN27] A firm or an individual may be declared ineligible to be awarded a Bank financed contract: Elaborates applicable
(i) upon completion of the Bank’s sanctions proceedings as per its sanctions procedures, including, sanctions procedures
inter alia, cross-debarment as agreed with other International Financial Institutions, including and expressly includes
Multilateral Development Banks, or otherwise decided by the Bank; and through the application of cross-debarment.
the Proposal for the Implementation of a Sanctions Process within the African Development Group;
and (ii) as a result of temporary suspension or early temporary suspension in connection with an on-
going sanction proceeding. See footnote 18 and paragraph 9 of Appendix 1 of these Rules.
[FN28] A nominated sub-contractor, consultant, manufacturer or supplier, or service provider
(different names are used depending on the particular bidding documents) is one which has either
been: (i) included by the bidder in its pre-qualification application or bid because it brings specific
and critical experience and know-how that allow the bidder to meet the qualification requirement for
the particular bid; or (ii) appointed by the Borrower.”
Appendix 1: Review By The Bank of Procurement Decisions and Publication of Awards of Contracts
No equivalent provision Para. 9 of Appendix I:

“When carrying out the selection process, the Borrower shall check the eligibility of bidders from the Clarifies due diligence
lists of firms and individuals debarred and suspended, pursuant to paragraph 1.14(d) of these Rules requirements before
and/or paragraph 1.22(d) of the Consultant Rules, by the Bank that are posted on the Bank’s external awarding contracts.
website. The Borrower shall apply additional due diligence by closely supervising and monitoring any
on-going contract (whether under prior or post review) executed by a firm or individual which has been

Appendix 3: Guidance to Bidders
No equivalent provision
-4-
sanctioned by the Bank after such contract was signed. The Borrower shall neither sign any new
contracts nor sign an amendment, including any extension of time for completion or a change or
variation order, to an on-going contract with a suspended or debarred firm or individual after the
effective date of the suspension or debarment without the Bank’s prior review and no objection. The
Bank will only finance additional expenditures if they were incurred before the completion date of the
original contract or the completion date as revised (i) for prior review contracts, in an amendment to
which the Bank has given its no objection, and (ii) for post review contracts, in an amendment signed
before the effective date of suspension or debarment. The Bank will not finance any new contract, or
any amendment or addendum introducing a material modification to any existing contract that was
signed with a suspended or debarred firm or individual on or after the effective date of suspension or
debarment.”
New addition at the end of para. 13 of Appendix 3:
Different treatment of
“Communication received from bidders involving allegations of fraud and corruption [FN78] may communication
warrant a different treatment due to reasons of confidentiality. In such cases, the Bank shall apply due involving fraud &
care and discretion in sharing information deemed appropriate with the Borrower. corruption.
[FN 78] Reporting on suspected fraud and corruption can be done directly to the Bank’s Integrity and Listing of reporting
Anti-Corruption Department (IACD) by email: investigations@iacd-afdb.org; through the independent tools.
third party online reporting tool at https://iwf.tnwgrc.com/afdb; or through the free 24-hour operator
assisted collect call hotline service: +1(770)776-5658. Additional toll free numbers are available on the
Bank’s website http://www.afdb.org/en/about-us/structure/integrity-and-anti-corruption/anti-
corruption-and-fraud-investigation-services-contacts/ (interpreters are available, anonymous calls
accepted). IACD can also be contacted directly at its offices at the Bank in Tunis, Tunisia: +216 71-
833-224 “