IDB Bans Company Operating in Barbados Over Alleged “Prohibited Practices”

BRIDGETOWN, Barbados, Thursday August 23, 2018 – The Inter-American Development Bank (IDB) has barred an American company involved in projects in Barbados over engagement in alleged “prohibited practices”, but declined to say specifically what the company had done.

The debarment of GL Systems LLC will last for four years, the IDB said in a statement yesterday. That means that the company will be ineligible to be awarded and participate in any IDB-financed contract for the period.

In announcing the move, the IDBD said the decision was taken “in connection with allegations of prohibited practices in three IDB-financed activities” − the Programme for the Modernization of Customs, Excise and VAT Areas in Barbados; the Barbados Competitiveness Programme and an IDB corporate procurement contract.

“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 financial institution 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.

“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 added.

The IDB said the debarment could be extended to seven years if GL Systems fails to comply with this commitment or other terms of the settlement.

In addition to being blocked from being involved in any IDB project for the specified period, GL Systems could be debarred by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.

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