World Bank debars two contractors

By Chris Sleight03 October 2011

The World Bank's Sanctions Board has imposed three-year bans on China first Metallurgical Construction Corporation (CFMCC) for fraud and Turkey's Oztas Insaat for collusion. The companies may be debarred from other development banks' projects under the Mutual Enforcement of Debarment Decision agreements signed last April.

CFMCC was found to have committed fraud on the Dhaka Urban Transport project in Bangladesh, following an investigation by the Integrity Vice Presidency (INT), The World Bank department responsible for investigating claims of fraud and corruption on the projects it funds. Under the terms of the debarment, CFMCC and any organisation under its control cannot participate in any project funded or controlled by the Bank for three years.

The INT investigation into Oztas meanwhile uncovered collusive practices on the East-West Highway Improvement project in Georgia. The three year ban may be reduced to two years pending co-operation with INT and the implementation of an effective corporate compliance programme.

World Bank integrity vice president Leonard McCarthy said, "Corruption is a serious act of misconduct and we are committed to leveraging our investigative and preventative resources to bring an end to it. We welcome the Sanctions Board decisions reaffirming the Bank's efforts to safeguard its projects and support development with integrity."

Under the terms of the Mutual Enforcement Debarment Decisions agreements, signed in April last year by the World Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development and the Inter-American Development Bank, the contractors could be debarred from projects financed by any of these institutions.

Latest News
Global project round-up: 10 of the latest announcements
Global construction activity remains healthy, as can be seen by this project roundup
Free webinar: Access in 2022 - tomorrow
Leading experts will discuss the year ahead for the access and rental sector in this free-to-view webinar 
Africa’s largest 3D-printed housing project
3D-printed housing can address “infrastructure gap”