Enforcing Accountability: The World Bank Group Debars Two Companies for Collusion and Fraud Relating to Two Projects in Georgia and Bangladesh

September 28, 2011

WASHINGTON, September 28, 2011 - The World Bank Group's Sanctions Board recently debarred Chinese company China First Metallurgical Construction Corporation (CFMCC) together with any organization CFMCC directly or indirectly controls for a period of three years.  The company's fraudulent misconduct relates to the Dhaka Urban Transport Project in Bangladesh.  

The debarment was announced by the Sanctions Board following an investigation by the Integrity Vice Presidency (INT), which is responsible for investigating fraud and corruption in World Bank-financed projects.  As such, CFMCC is ineligible to be awarded contracts under any Bank Group-financed or Bank Group-executed project or otherwise participate in the preparation or implementation of such projects throughout the debarment period.

The Sanctions Board also debarred Oztas Insaat, Inssat malzemeleri Ticaret Anonim Sirketi (Oztas) for a period of three years that may be reduced to two years pending cooperation with INT and the implementation of an effective corporate compliance program.  The debarment was announced following an INT investigation revealing collusive practices by Oztas in relation to the East-West Highway Improvement Project in Georgia.

"Corruption is a serious act of misconduct and we are committed to leveraging our investigative and preventive resources to bring an end to it.  We welcome the Sanctions Board decisions reaffirming the Bank's efforts to safeguard its projects and support development with integrity," said Leonard McCarthy, World Bank Integrity Vice President.

These cases are eligible for cross-debarment under the April 2010 Agreement for Mutual Enforcement of Debarment Decisions entered into by the African Development Bank Group, Asian Development Bank, European Bank for Reconstruction and Development, World Bank Group and Inter-American Development Bank Group.

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