Overview
Global Investigations Review (GIR) quoted Lucinda Low in a July 31 article titled "World Bank's Enforcement Approach Needs Review, Say Lawyers." The article discusses the World Bank's anti-corruption unit, which is ushering in new leadership that some observers say provides an opportunity for change. For years, the unit’s default resolution has been debarment, but some say that enforcement approach is outdated and counterproductive.
Low, who regularly counsels clients on development bank cases, says, "For some companies it's a death sentence." The UN, for example, follows whom the World Bank debars and also blacklists those companies. And a company's other potential clients may be less inclined to do business with an entity on a published debarment list.
"I have had clients that tend to be smaller that have been put out of business. It doesn't matter if it's one or two years. Once you get past a certain threshold, it’s a series of collateral consequences" that make it impossible for a business to survive, she adds.
The full article can be read at GIR (subscription required).