The European Bank for Reconstruction and Development has announced sanctions against Turkish nationals Nihat Demiroğlu and Ahmet Yalçın Yazici, along with an entity under their joint control, following investigations into corruption and collusion linked to EBRD-financed infrastructure projects in Serbia and Ukraine. The projects involved the construction and rehabilitation of solid waste management systems and related infrastructure. As part of settlement agreements, the individuals received debarment periods of two years and four months, and three years respectively.
The investigation conducted by the EBRD’s Office of the Chief Compliance Officer revealed that both individuals were previously employed by a construction company that had already been barred from participating in EBRD-financed projects. Despite the existing ban, they allegedly worked under the direction of their former employer to bypass restrictions by using a front entity to bid for contracts connected to EBRD-funded projects.
The findings also showed involvement in corrupt practices aimed at influencing tender procedures. In one case, improper payments were allegedly facilitated between bidders, while in another, attempts were made to offer payments to influence procurement outcomes. The investigation further uncovered efforts to manipulate competition in bidding processes to improve the chances of securing contracts.
According to the EBRD, the reduced sanction periods were granted because both individuals admitted culpability and cooperated during the investigation. The settlements now prohibit them from participating in EBRD-financed activities during their debarment periods. The sanctions may also qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed in 2010.
