WASHINGTON, March 4, 2016 – The World Bank has debarred Schneider Electric Pakistan Pvt. Limited for a period of 25 months for engaging in collusive practices under the Bank-financed Pakistan Electricity Distribution and Transmission Improvement Project.
An investigation led by the World Bank Integrity Vice Presidency revealed Schneider Electric Pakistan Pvt. Limited was a member of a cartel of switchgear manufacturers. As Cartel members, companies would decide in advance which, among them, would win particular contracts while setting the prices to be quoted in different tenders. Further evidence revealed by INT confirmed Schneider Electric Pakistan Pvt. Limited engagement in collusive practices when bidding for World Bank-financed contracts aimed to support electricity distribution and transmission to serve the Pakistani people.
“Fraud, corruption or collusion in development projects is a waste of resources to beneficiaries, a missed opportunity for companies to engage in clean business and a serious threat to efforts aimed at ending poverty. This case demonstrates that the collusive power of cartels can be weakened by a strong and sustained commitment to accountability,” said Leonard McCarthy World Bank Integrity Vice Presidency.
The debarment is part of a Negotiated Resolution Agreement between the World Bank and Schneider Electric Industries SAS, the parent company of Schneider Electric Pakistan Pvt. Limited; the entity responsible for the misconduct. Schneider Electric Industries SAS signed this NRA on behalf of Schneider Electric Pakistan Pvt. Limited and the sanction imposed recognizes the parent company’s acceptance of responsibility and commitment to ensuring the latter will adopt and implement corporate compliance principles set by the World Bank as part of the agreement.
The debarment of Schneider Electric Pakistan Pvt. Limited qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.