WASHINGTON, April 13, 2010 — The World Bank Group recently announced five decisions by its Sanctions Board debarring two companies, three individuals and three non-governmental organizations (NGOs) for fraudulent practices in three different projects across two regions. The debarments followed in-depth investigations by the World Bank's Integrity Vice Presidency (INT), which is responsible for investigating fraud and corruption in World Bank Group projects.
"These investigations demonstrate that fraud and corruption can occur across sectors. The World Bank Group will remain vigilant in investigating allegations and holding wrongdoers accountable," said Leonard McCarthy, World Bank Integrity Vice President. "In parallel, we will rely on new tools and partnerships to improve the quality of INT's investigations and prevention efforts." He also added that managing fraud and corruption risks is a prominent feature of the World Bank Group's Governance and Anticorruption (GAC) agenda: "the outcome of our investigations is a critical input to enhancing the World Bank Group's efforts in addressing governance challenges and promoting a culture of integrity in the public and private sectors." Jim Adams, World Bank Vice President for the East Asia and Pacific Region, emphasized that "this debarment action further demonstrates the importance the World Bank attaches to addressing all forms of fraud in the projects it finances in the region."
In Vietnam, the World Bank Group debarred Glocoms, Inc., a US-based management consulting firm, and its CEO, Maurence Anguh, for having engaged in fraudulent practices related to a Bank-financed project in the banking sector. The debarment period is for four years during which Glocoms and Maurence Anguh, including any individual or organization that directly or indirectly controls or is controlled by them, are ineligible to be awarded contracts under any World Bank Group-financed or World Bank Group-executed project or otherwise participate in the preparation or implementation of such projects.
In Cambodia, the World Bank Group debarred Royal Mekong Construction & Development Pte., Ltd. and its Director, Heng Rathpiseth, for having engaged in fraudulent practices related to a Bank-financed project in the roads sector. The debarment period is for two years during which Royal Mekong and Heng Rathpiseth, including any individual or organization that directly or indirectly controls Royal Mekong and/or any organization Royal Mekong or Heng Rathpiseth directly or indirectly controls, are ineligible to be awarded contracts under any Bank Group-financed or Bank Group-executed project or otherwise participate in the preparation or implementation of such projects. In addition, they must comply with certain remedial and preventive measures in order to avoid extending their ineligibility for another year.
The third decision relates to a set of cases where the World Bank Group debarred three NGOs in addition to an NGO's Executive Director for having engaged in fraudulent practices related to a Bank-financed project in the education sector in Bangladesh. Samaj Progati Sangstha (SPS), Bandhan Bahumukhi Samajik Unnayan Sangstha, Abdul Quddus Sarkar and Jhenada Atmobiswas, including any individual or organization that directly or indirectly controls or is controlled by them, are all ineligible to be awarded contracts for a period of three years under any World Bank Group-financed or World Bank Group-executed project or otherwise participate in the preparation or implementation of such projects for three years.
