World Bank Group Sanctions Four Companies and One Individual for Fraud and Corruption

July 15, 2016

WASHINGTON, July 15, 2016 – Between April – June 30, 2016, the World Bank Group debarred four companies and one individual involved in sanctionable misconduct relating to projects in Mongolia, Vietnam, Argentina, Peru and Kenya.  The debarments were announced following investigations by the World Bank’s Integrity Vice Presidency (INT).

In Mongolia, Daewoo Information Systems Co., Ltd. (Daewoo) was debarred for two years and six months. INT’s investigation revealed Daewoo was engaged in corrupt misconduct to win a Bank-financed contract under the Governance Assistance Project in Mongolia.

The World Bank also debarred Thang Loi Group Co., Ltd. (Thang Loi) for four years. According to evidence gathered by INT, the company misrepresented facts while bidding for two separate contracts under the Vietnam Northern Delta Transport Development Project and the Vietnam Da Nang-Quang Ngai Expressway Development Project.

“The outcome of our investigations during this last quarter speaks to the sustained commitment of the World Bank Group to respond to allegations of fraud and corruption while working closely with member countries and companies to strengthen governance systems and raise compliance standards,” said Leonard McCarthy, World Bank Integrity Vice President.

The World Bank also debarred Mr. Stephen Courtenay Chandler as well as any entity that he directly or indirectly controls for three years for fraudulent practices.  An INT investigation revealed that Mr. Chandler provided false information to claim and bill for consultants’ services purportedly- but in fact not provided-under a Bank-financed contract relating to the Metropolitan Areas Urban Transport Project in Argentina.

In Peru, Consorcio Ocongate submitted two fraudulent certificates of credit in a joint bid for a public works contract under the Peru Health Reform Program – Second Phase and was debarred for two years.  Finally, in Kenya, Minimix Agencies (Minimix) was debarred for three years for fraudulent practice under the Kenya Water and Sanitation Service Improvement Project. An investigation by INT revealed that Minimix submitted two forged Manufacturer’s Authorization Letters in its bid for a three-lot billing systems contract.

Under the terms of the above sanctions, the debarred entities must adopt and implement an effective integrity compliance program consistent with the World Bank Integrity Compliance principles.  During the debarment period, the companies and individuals are 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.   The debarment of these companies and individuals qualifies for cross-debarment by other multilateral development banks under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010


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