The European Bank for Reconstruction and Development (EBRD) has announced a settlement agreement with Spanish engineering and consulting firm Applus Norcontrol S.L.U., resulting in a 13-month debarment from participating in EBRD-financed projects and operations.
The sanction relates to a fraudulent practice connected to a real estate development project in Serbia focused on expanding science, technology, and innovation parks. Applus Norcontrol had been contracted by the EBRD to provide procurement and technical due diligence services for the project following a competitive selection process.
According to the EBRD, an investigation conducted by its Office of the Chief Compliance Officer (OCCO) found that the company, through one of its employees, arranged the engagement and payment of a key expert who had not received the bank’s approval. The action occurred despite a prior objection from the EBRD regarding the individual’s involvement in the project.
The settlement includes a reduced debarment period due to several mitigating factors. The bank cited the company’s admission of responsibility, cooperation during the investigation, completion of an internal review, and prompt disciplinary action against the employee involved. Applus Norcontrol has also committed to implementing a comprehensive compliance improvement plan designed to strengthen internal controls and prevent future misconduct.
As a result of the debarment, Applus Norcontrol and its 17 subsidiaries will be ineligible to participate in EBRD-financed activities for the duration of the sanction. The decision may also be recognized by other multilateral development banks under an international agreement on the mutual enforcement of debarment decisions.
The EBRD stated that maintaining integrity and accountability in development projects remains a key priority. Through its compliance and investigative framework, the bank continues to promote transparency and ensure that organizations involved in its projects adhere to the highest ethical standards.
The case highlights the growing emphasis among international financial institutions on corporate compliance, governance, and responsible business practices in publicly funded development initiatives.
