When ADB declares a firm ineligible to participate in ADB-financed activity, does that sanction apply to the firms employees or associated firms?
A firm’s ineligibility extends to all employees and officers of the firm. Ineligibility may extend to contractual employees or others with an association with the firm, depending on the specific relationship of that individual with the firm or the individual’s involvement in the action that led to the sanction. This policy is to prevent attempts to circumvent the sanction. Those employees or others (as may be determined on a case-by-case basis, depending on the specific circumstances) may not participate in ADB-financed activity, either independently or through nomination by an eligible firm, unless they have completely disassociated themselves with the debarred firm. When ADB imposes a sanction on a firm, it applies to a specific business entity, unless otherwise specified. Several times, ADB has declared ineligible only selected entities of corporate organizations. In such cases, associated firms of the corporate organization remain eligible to participate in ADB-financed activity.
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