Company commits to pay Euros €400,000 in restitution following acknowledgment of corrupt misconduct in a World Bank-financed health project in Romania
WASHINGTON, April 13, 2016—The World Bank Group announced the debarment of Nihon Kohden Europe (NKE), following the company’s acknowledgement of multiple bribe payments under the Romania Health Sector Project.
An investigation by the World Bank Integrity Vice Presidency revealed that NKE paid a total of Euros €373,761 in bribes in exchange for contract awards for the supply of medical equipment.
The three year debarment is part of a Negotiated Resolution Agreement (NRA) signed by the World Bank and NKE. NKE will continue its cooperation with INT in addition to paying restitution in the amount of €400,000. NKE’s parent company in Japan, Nihon Kohden Corporation, has also committed to stepping up its global compliance program.
“Corruption risks pose a serious threat to development projects. Cases like this where companies acknowledge misconduct and commit to meeting a higher compliance standard can make a real difference in how we impact the lives of communities that we serve and those to whom we are accountable,” said Leonard McCarthy, World Bank Integrity Vice President.
The debarment of NKE qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.