EU Commission bans development aid consultancy IBF for second time

Brussel-based IBF International Consulting has reportedly been banned for a second time by the European Commission in early December.

The controversial consulting firm has previously received hundreds of millions of euros in development contracts from the European Commission. Brussels did not provide any additional information on why exactly the firm was banned, but a Commission letter reportedly mentioned “grave professional misconduct.”

IBF International Consulting was founded in 1977 and grew significantly in the 2000s. It has long participated in projects to prepare countries for joining the EU – in the Balkans especially. The firm has only seen significant controversy in recent years, coinciding with an increasing trend of scrutiny over EU contracts with consulting firms.

Big trouble in little countries

Frédéric André, the CEO of IBF International Consulting, reportedly alerted the firm’s 35 staff and 250+ associates in an email that the ban, which took effect on December 9, was related to two tenders for EU contracts related to projects in Moldova. The Eastern European country has been eyeing EU membership for years, but various political issues have prevented it thus far.

The recent ban on IBF comes after the consulting firm was previously suspending by the European Commission in 2020 after it reportedly leaked sensitive information on the Commission’s procurement processes.

But the trouble does not end there: Albanian authorities are currently criminally investigating the firm over alleged misconduct related to potential corruption, forgery, and money laundering.

These development were first uncovered by Follow the Money, an investigative journalism outlet that has been following the case for months.

From Brussels, with love

In their own words, IBF International Consulting is a “global leader in international development consulting” that partners with governments, development agencies and the private sector “to design and implement impactful solutions that drive sustainable growth, strengthen governance, and enhance societal well-being.”

The firm boasts participation in EU-funded development projects in Serbia, Georgia, Morocco, and Vanuatu, among other nations. With its offices in central Brussels, the firm is mainly involved in projects funded by the EU, the World Bank, or otherwise related to specific EU programs like the EU-Georgia Association Agreement.

CEO Frédéric André previously worked as Assistant to the Representative of the European Commission in Albania, where he set up an official representation to the Commission and served as a source of information to the EU on the political and economic situation in Albania, which has long aspired to join the bloc.

Sources that spoke to FTM noted that the firm appears to be cutting down on staff. Indeed, on the ‘work with us’ section of IBF’s website, the firm states that it has currently has no job openings.

Part of the controversy with IBF revolves around the fact the firm has several off-shoot firms, which may or may not operate under the same leadership. The firm has reportedly emphasized that these related firms are led and run independently.

EU’s use of consultants – a bad habit?

The use of consultancies by the European Commission has been sharply criticized in recent years. Critics point to issues like wasted money and potential conflicts of interest, among other alleged irregularities. A 2022 European Court of Auditors report that found the Commission failed to adequately report on the use of consultants.

“The way the European Commission hires and uses external consultants does not fully ensure that it maximises value for money or fully safeguards its interests,” said François-Roger Cazala, member of the European Court of Auditors, in the report.

The European Ombudsman Emily O’Reilly has also raised the alarm, warning that outsourcing policy work to private firms risks the integrity of the entire European administration.

“Governments should be ready to ask themselves at what point the outsourcing of specialized work risks undermining the integrity of public administration,” said O’Reilly in 2022.

“It is by remaining attentive to the various potential sources of undue influence... that we can continue to guarantee the right to good administration for all EU citizens.”