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PRESS RELEASE

World Bank Debars SWECO Environment AB, and Conditionally Non-debars SWECO International AB for Three Years

March 28, 2014

WASHINGTON, March 28, 2014 - The World Bank Group today announced the debarment of SWECO Environment AB and its affiliates and the conditional non-debarment of SWECO International AB, and its affiliates for a period of three years following SWECO AB’s acknowledgment of misconduct by these entities in relation to an urban infrastructure project in Eastern Europe.

Two former SWECO Environment AB employees (one of whom was the company’s Director of International Operations at the time) paid for a trip for the Head of the Project Management Unit and his family during the procurement process for two World Bank-financed contracts in exchange for confidential information from the technical proposals of other consultants competing for the same contracts and provide their own inputs into the bid evaluations processes.   These individuals were dismissed by SWECO following INT’s investigation.

The sanctions are part of a Negotiated Resolution Agreement between the World Bank and the Swedish engineering consulting company.  The sanctions reflect recognition of SWECO AB’s cooperation with INT’s investigation and corrective action taken by the company. Swedish anti-corruption authorities have prosecuted the two former SWECO employees for corruption in connection with this case, one of whom received a jail term.

“The outcome of the SWECO case reflects the World Bank’s commitment to protecting the integrity of development projects.  In this case, the World Bank would like to commend the National Anti-Corruption Unit within the Swedish Prosecuting Authority who took swift and robust action resulting in the prosecution of those responsible,” said Leonard McCarthy, World Bank Integrity Vice Presidency. 

Under the Agreement, SWECO AB and its affiliates commit to cooperating with the World Bank’s Integrity Vice Presidency and continuing to improve their internal compliance program.

The debarment of SWECO 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.

Media Contacts
PRESS RELEASE NO:
2014/403/INT