EBRD sanctions individual for collusive practice

• EBRD and Victor Pisante reach settlement regarding collusion in EBRD-financed project
• Sanction comprises a debarment of 2 years and 3 months
• Settlement reduces debarment period due to Victor Pisante’s cooperation and admission of responsibility

The European Bank for Reconstruction and Development (EBRD) has debarred Victor Pisante, an Italian national, and 7 entities under his control for 2 years and 3 months in connection with a collusive practice relating to an EBRD-financed project.

The project involved the provision of a loan to BH Croatia I Ltd (BH Croatia) in 2017 to support a debt acquisition. At the time in question (2017-18), BH Croatia was indirectly owned by Bluehouse Accession Property (II) L.P., a fund in which the EBRD held an equity investment. Mr Pisante was a shareholder in and director of the fund’s general partner and investment advisor.

An investigation by the EBRD’s Office of the Chief Compliance Officer (OCCO) found that Mr Pisante had arranged with third parties to misrepresent an outflow from the fund as an intermediation fee in connection with the debt acquisition transaction. This conduct constitutes a collusive practice under the EBRD’s Enforcement Policy and Procedures.

The settlement provides for a reduced sanction in light of Mr Pisante’s admission of responsibility and cooperation with the investigation. The sanction makes Mr Pisante and 7 entities he controls ineligible to participate in projects financed by the EBRD for 2 years and 3 months.

The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed on 9 April 2010.

About OCCO

OCCO plays a central role in the EBRD’s commitment to integrity through its mandate to investigate prohibited practices in EBRD-financed projects. More information on OCCO’s broader mandate and the EBRD’s sanctions system is available on its website.