PRESS RELEASE October 4, 2017

World Bank debars three entities in relation to misconduct impacting an environmental program in the East Asia and Pacific Region

World Bank debars three entities in relation to misconduct impacting an environmental program in the East Asia and Pacific Region

WASHINGTON, October 4, 2017– The World Bank Group announced the debarment of Berkman International Inc. (Berkman) for five years; the Center for Environmental Studies and Management, Inc. (CESM) for 18 months; and Mrs. Belen Gacad for 18 months. The debarments are part of two Negotiated Resolution Agreements (NRAs) relating to the same World Bank investigation.

The investigation revealed that Berkman engaged in corrupt practices to influence the implementation, of World Bank-financed contracts under the Third Manila Sewerage Project and the Integrated Persistent Organic Pesticides Management Project (IPOPs), in the Philippines.  Berkman also engaged in fraudulent practices when seeking IPOPs contracts by misrepresenting its past work experience, the identity of its joint venture partner, the involvement of its subconsultant, and the identity and allocated man-hours of its project team members. CESM engaged in fraudulent practices by concealing a conflict of interest with a procurement consultant when seeking IPOPs contracts.  Mrs. Gacad engaged in corrupt practices by facilitating certain of Berkman’s improper payments.

Under the terms of the NRAs, Berkman, CESM, and Mrs. Gacad are required to (i) cooperate with the World Bank Integrity Vice Presidency to support its investigations, and (ii) meet the World Bank Integrity Compliance Guidelines.  

The debarments qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.


PRESS RELEASE NO: 2018/035/INT

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