By Collin David Swan*
Enforcement of anti-corruption laws is on the rise. Indeed, it is no secret that civil and criminal actions against businesses and individuals for anti-corruption violations has increased over the last few years. But it is perhaps less well-known that governments around the globe are also increasing their use of suspension and debarment—which are legal mechanisms used by governments to exclude private sector entities and individuals from public procurement contracts—to avoid doing business with suppliers perceived as corrupt or unbearably risky.
Enforcement of anti-corruption laws is on the rise. Indeed, it is no secret that civil and criminal actions against businesses and individuals for anti-corruption violations has increased over the last few years. But it is perhaps less well-known that governments around the globe are also increasing their use of suspension and debarment—which are legal mechanisms used by governments to exclude private sector entities and individuals from public procurement contracts—to avoid doing business with suppliers perceived as corrupt or unbearably risky.
The United States is no exception
to the trend. The 2015 annual report from the U.S. Interagency Suspension & Debarment Committee
(ISDC) to Congress reveals that the number of debarment actions
undertaken by U.S. agencies has increased steadily over the last six years—from
669 debarments in FY 2009 to 1,929 debarments in FY 2014. The number of
suspensions has also increased to 1,009 actions in FY 2014, which represents a
142% increase from FY 2009 (417 actions). The ISDC is an interagency
body working to provide support for suspension and debarment programs across
numerous executive agencies and thus has unique visibility into government-wide
trends in suspension and debarment activities.
