Multilateral banks agree anti-corruption stance

The world's top multilateral banks have signed a cross debarment agreement that will make dealing with corruption and fraud on a global basis more effective.

Due to come into force by the middle of this year, the agreement states that if one multilateral development bank (MDB) declares a company or individual ineligible for procurement contracts because of fraud or corruption, then all the other MDB's will do the same.

The cross debarment agreement, along with improved information sharing and coordinated investigations is part of an unprecedented collaboration between the African Development Bank (ADB), The European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank Group and the World Bank.

A spokesperson from the Inter-American Development Bank said, "Fraud and corruption are major impediments to effective development. The threat of public sanctions should add to the financial and reputational risks for individuals and companies, creating both a deterrent for misconduct and an incentive for the adoption of effective anticorruption practices."