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Updated On: Saturday, 24 March 2018
Development Issues

EIB and IBERINCO Settlement Agreement to address and combat fraud

Content by: European Investment Bank

The European Investment Bank (EIB) and the Spanish Company IBERINCO have entered into a Settlement Agreement that addresses historical misconduct in connection with the Riga Thermal Power Plant 2 Unit 1 Project in Latvia contracted in 2005.

This project was financed by the EIB.

As part of this settlement, IBERINCO will be excluded from EIB financed projects for a 12 month period. Also, IBERINCO and its group will develop and implement a specific sponsorship program to support activities in favor of the fight against corruption and fraud. IBERINCO will closely cooperate and assist the EIB going forward in its efforts to investigate alleged prohibited conduct in EIB-financed projects. Both parties also agreed to exchange best practices in relation to compliance standards and the fight against fraud and corruption.

Since the beginning of the investigation, IBERINCO cooperated with the EIB in clarifying matters related to the wrongdoing addressed. Also, Iberinco took necessary steps to hold employees accountable, and review its compliance systems to ensure such misconduct is not repeated.


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