WASHINGTON, April 23, 2015—The World Bank Group today announced the debarment of Alcatel-Lucent Trade International A.G. and Alcatel Saudi Arabia Limited for a period of 18 months following the companies’ acknowledgment of sanctionable practices and cooperation with the World Bank’s investigation in relation to the World Bank-financed Emergency Private Sector Development Project in the Republic of Iraq.
An investigation by the World Bank Integrity Vice Presidency revealed that Alcatel-Lucent Egypt for Telecommunications, S.A.E and Alcatel-Lucent Italia, S.p.A., failed to disclose two agents hired on their behalf by Alcatel Lucent Trade International A.G., to help them win a bid for a US$30,438,371 telecommunications services and training contract in 2006 under a World Bank-financed private and financial sector development project with a total value of US$65 million.
“The World Bank Group’s commitment to managing fraud and corruption risks is key to our mission to ending poverty; particularly so in conflict-affected and fragile states. This case is a practical example of how companies need to use caution when working with agents,” said Leonard McCarthy, World Bank Integrity Vice President.
The sanction is part of a Negotiated Resolution Agreement (NRA) which also includes the conditional non-debarment of the following specified affiliates: Alcatel-Lucent Egypt for Telecommunications, S.A.E. and Alcatel-Lucent Italia, S.p.A., Telettra International S.A and Telettra Saudi Arabia. Under the NRA, Alcatel-Lucent Trade International A.G. and Alcatel Saudi Arabia Limited and their affiliates commit to cooperating with the World Bank Integrity Vice Presidency as well as adopting a compliance program that meets the World Bank Integrity principles.
The debarment of Alcatel-Lucent Trade International A.G. and Alcatel Saudi Arabia Limited qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.