World Bank debars seven companies

By Helen Wright31 May 2012

World Bank

World Bank

The World Bank has debarred seven contractors and consultants for alleged corruption and fraud on projects it finances.

Contransimex Nigeria has been disqualified from bidding for World Bank projects for at least two years after allegedly submitting a fraudulent bid for a US$ 200 million urban development project in Lagos, Nigeria, in 2008.

Chinese contractor Zhonghao Overseas Construction Engineering has also been debarred for two years for fraud, with a conditional early release after one year, in relation to its bid for a 2008 road building project in Sudan.

In Palestine, meanwhile, the World Bank debarred consultants General Consulting Training and TEAM Engineering & Managements for one year and two years, respectively, after alleged fraud on a project to assist the Palestinian Authority's municipal development fund in 2006.

Thai consultant Asdecon Corporation has been disqualified for five years for alleged corrupt practices on a Thailand Highways Management Project in 2004, while Italian oil and gas contractor De Lorenzo of America and its affiliate Marketing Enterprises Latin America have each been debarred for two years for allegedly submitting a fraudulent tender for a Peruvian industrial equipment contract in 2007.

Nigerian power company Income Electrix Limited has also been debarred from World Bank projects for six months after allegedly submitting a fraudulent bid for a Nigerian National Energy Development Project contract in 2007.

Anti-corruption drive

This is the first time that the World Bank has published its Sanctions Board decisions in full - a development it says is part of its openness and accountability drive in anti-corruption work.

World Bank Managing Director Sri Mulyani Indrawati said, "The World Bank Group takes a hard line against corruption, and we believe that greater transparency must be part of that effort. By publishing Sanctions Board decisions, we are making all parties involved in the sanctions process more accountable. This move should deepen the deterrent effect of debarments and enhance the educational value of the Sanctions Board's findings."

More than 530 companies and individuals have been sanctioned by the World Bank for fraud, corruption and collusion since the sanctions system was established in 1999. Most of these sanctions have been in the form of debarments.

Companies debarred by the World Bank are also liable for cross-debarment by other international development banks, such as the Asian Development Bank and Inter-American Development Bank, under the 2010 mutual debarment agreement.

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