The World Bank Group has announced a two-year debarment with conditional release for Italy-based Panaque, S.R.L. and its sole director, Oscar Di Santo. This decision is linked to collusive, fraudulent, and corrupt practices associated with the Second Institutional Development and Agricultural Strengthening Project in Montenegro.
The project aims to enhance the competitiveness of agriculture and fisheries in Montenegro by improving government support in line with EU accession requirements. Between 2019 and 2020, Panaque and Mr. Di Santo accessed confidential information related to a tender they bid for and won under the project. They failed to disclose this conflict of interest in their bid and made an improper payment to a public official during contract execution. These actions are considered violations under the World Bank’s Procurement Regulations and Anti-Corruption Guidelines.
As a result of these debarments, Panaque, Mr. Di Santo, and any entities they control are barred from participating in projects financed by the World Bank Group institutions. The debarments form part of settlement agreements where both parties acknowledge their responsibility for the misconduct and agree to fulfill specific integrity compliance conditions for their release from debarment.
The settlement agreements offer reduced debarment periods due to Panaque's and Mr. Di Santo's minor role in the misconduct, their compliance efforts, cooperation, acceptance of responsibility, and voluntary restraint from seeking further contracts financed by the Bank Group. To be released from sanctions under these agreements, Panaque must develop integrity compliance measures according to the Bank Group Integrity Compliance Guidelines; Mr. Di Santo must undertake corporate ethics training. Any affiliate controlled by Mr. Di Santo during the sanction period will also need to implement appropriate integrity compliance measures. Both parties commit to ongoing cooperation with the World Bank Group Integrity Vice Presidency.
These debarments qualify for cross-debarment by other multilateral development banks under an agreement signed on April 9, 2010.