McCarthy: sanctions hurt
| McCarthy: sanctions hurt
Leonard McCarthy, the former head of South Africas
anti-corruption unit who was brought in by the Bank to boost
its anti-bribery efforts, told Emerging Markets
network will officially launched in December.
The International Corruption Hunters Network will bring
together 250 agencies from 120 countries. These include USAID,
the European Anti-Fraud Office (OLAF), the UKs Serious
Fraud Office, the International Criminal Court and Interpol,
with which the bank has signed cooperation agreements.
Youd be surprised how many roads lead to London,
New York and Washington and we wanted to make sure the
exchange of information is much more effective than [it has
been] in the last five years, McCarthy said.
McCarthy, who is the banks vice president of
institutional integrity known as INT said the
network would make it easier for investigators to pool
information, and ensure that companies involved in bribery by
one organisation would be debarred from bidding for work from
We wanted to get attorney generals, heads of
corruption agencies and directors of public prosecutions around
the table from north and south in the fight against
international bribery, he said.
The World Bank has signed a series of agreements with other
multilateral banks to ensure that companies are barred from all
potential contracts. This week the Asian Development Bank
blocked three Indian companies that had been debarred by the
World Bank the first cross-debarment since an agreement
was signed in April.
Companies that are barred by the bank and put up their
hands in other parts of the world get barred
automatically, McCarthy said. Right-minded CEOs
tell us sanctions hurt them, because it deprives them of
economic opportunity, over and above the fact that it hangs a
label round their necks.
McCarthy was speaking ahead of the publication yesterday of
the latest INT annual report, which showed a 238% rise in the
number of investigations completed in the year to June 2010
compared with the previous year.
These included a number of high profile cases including the
six-year debarment of Macmillan Limited, the UK publishing
firm, as part of a negotiated settlement after the company
admitted it had paid bribes in an attempt to win a contract in
OOO Siemens, a Russian subsidiary of Siemens AG, was barred
from bidding for four years after it admitted failing to
disclose a longstanding relationship with the design consultant
for a Moscow road for which it was bidding to provide the
traffic control system.
However the vast majority of the companies debarred in the
latest year 31 out of 45 were from Bangladesh,
where the bank uncovered corruption relating to a number of
education projects. Six more were from India.
Before joining the bank in June 2008, McCarthy headed the
Scorpions crime-fighting unit in South Africa that was
established to fight high-profile corruption cases and scored
successes against organized crime in a number of cases.