Pursuant to Sanctions Board Decision No. 97 issued in Sanctions Case No. 393, the Sanctions Board imposes sanctions of debarment on Olive Health Care and Mr. Jay Modi (respectively, the "Respondent Firm" and the "Respondent Manager" and collectively, the "Respondents") with the possibility of conditional release after a minimum period of ineligibility of ten (10) years and six (6) months for the Respondent Firm, and seven (7) years and six (6) months for the Respondent Manager.
These sanctions are imposed on the Respondents for fraudulent and corrupt practices as defined in Paragraph 1.14(a) of the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits (May 2004, revised October 1, 2006 and May 1, 2010).
Capsule Summary of Findings:
The two Respondents in this case, a pharmaceutical supply firm and a member of its senior staff, were found liable for several instances of misconduct relating to the firm's bid for a Bank-financed contract to supply vitamin supplements to vulnerable populations in Bangladesh. First, the Sanctions Board found that the Respondents made multiple fraudulent misrepresentations to the Borrower while competing for the contract, overstating the firm's past experience and significantly understating a commission to be paid to its agent. Second, the Sanctions Board found that the Respondents offered a commission to an agent with the expectation that the agent influence public officials to improve the firm's chances of winning the contract. In selecting the appropriate sanctions for each of the Respondents, the Sanctions Board took into account the plurality of sanctionable practices in this case, the severity of the Respondents' misconduct, the Respondents' cooperation with the Bank during the course of its investigation, and the period of temporary suspension served by the Respondents during the course of these sanctions proceedings. Full discussion of the facts, allegations, and the Sanctions Board's analysis can be found in the published decision.