World Bank Sanctions Nigerian Firm “Scientific Energy and Environmental Management Systems Limited” (SEEMS) for Fraud in Connection to Urban Transport Project
June 18, 2013
WASHINGTON, June 18, 2013—The World Bank Group today announced the debarment of the Nigerian firm Scientific Energy and Environmental Management Systems Limited (SEEMS) for two years for fraudulent practices under the Second Lagos Urban Transport Project financed by the World Bank.
The debarment is part of a Negotiated Resolution Agreement which includes satisfactory compliance with the World Bank’s Integrity standards, including corporate ethics training for all its employees within three months. In addition, SEEMS agrees to fully cooperate with the World Bank’s Integrity Vice Presidency (INT), the unit mandated to investigate fraud and corruption in Bank-financed activities.
“Misrepresentation and falsifying credentials is a serious matter that compromises the quality of project delivery” said Leonard McCarthy, World Bank Integrity Vice President. “This case demonstrates the World Bank’s tough stance against misconduct impacting its projects. At the same time, we will continue our efforts to promote a level-playing field for competent and clean companies. ”
INT was alerted to the matter by the project task team. When the World Bank informed the local implementing agency, the agency undertook its own investigation and terminated the contract.
The debarment of SEEMS qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.About the World Bank Integrity Vice Presidency
The World Bank Integrity Vice Presidency (INT) is responsible for preventing, deterring and investigating allegations of fraud, collusion and corruption in World Bank projects, capitalizing on the experience of a multilingual and highly specialized team of investigators and forensic accountants.
Key results of INT’s work in FY12-13 include:
- 72 entities sanctioned in FY 13 including settlements where companies are debarred as a default sanction in addition to committing to cooperation with the Integrity Vice Presidency. These include the Canadian company SNC Lavalin and more than 100 of its affiliates and the Indian company Larsen and Toubro Limited among others.
- 252 jointly recognized debarments among MDBs that signed the Cross Debarment agreement.
- Building precautions against fraud and corruption in high-risk projects
- The World Bank introduced its new App to report fraud and corruption allegations relating to its projects. The new App also complements other tools and information resources to support the detection of fraud and corruption red flags. The World Bank Integrity App is available for the IOS platform through the iTunes store.
- Following Alstom’s acknowledgment of misconduct in relation to a Bank-financed hydropower project in Zambia, the World Bank debarred Alstom Hydro France and Alstom Network Schweiz AG (Switzerland) - in addition to their affiliates - for a period of three years as part of a Negotiated Resolution Agreement between Alstom and the World Bank which also includes a restitution payment by the two companies totaling approximately $9.5 million.
- The second meeting of the International Corruption Hunters Alliance brought together 175 senior enforcement and anticorruption officials from 6 regions, to inject momentum into global anti-corruption efforts.
- Cooperation agreements in support of parallel investigations, asset recovery and information sharing with the UK Serious Fraud Office, the European Anti-Fraud Office, Interpol, the Korean Supreme Prosecutor’s Office, the Ethiopian Ethics and Anti-Corruption Commission, the Liberian Anti-Corruption Commission and several other national and international authorities.
- Enhanced preventive training and forensic audits designed to identify and address red flags and integrity controls in World Bank-financed projects.
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