The company and its two affiliates acknowledged misconduct in a World Bank-financed contract related to the energy sector in Egypt
WASHINGTON, October 11, 2016 – The World Bank Group announced the debarment of AC Boilers S.p.A., and its two affiliates (AC Boilers Egypt S.A.E., and Centro Combustione Ambiente) for a period of 9 months, followed by an additional 15-month period of conditional non-debarment. Under conditional non-debarment, a company may continue working on World Bank projects as long as certain compliance conditions are met within a specified period of time. Failure to comply with these conditions results in automatic debarment.
An investigation by the World Bank Integrity Vice Presidency revealed that AC Boilers recklessly failed to disclose the identities and payment amounts of two local agents when bidding for a World Bank-financed contract under El Tebbin Power Project in Egypt.
“Maintaining the integrity of development projects is a shared responsibility. The World Bank is committed to managing fraud and corruption risks in projects we finance to ensure its success and that funds serve their intended beneficiaries,” said Leonard Frank McCarthy, World Bank Integrity Vice President.
The debarment is part of a Negotiated Resolution Agreement under which the company will cooperate with the World Bank Integrity Vice Presidency in its efforts to prevent misconduct in World Bank-financed projects. In addition, the debarred entities are required to comply with the World Bank’s Integrity Guidelines prior to their release from the debarment list.
