WASHINGTON, July 20, 2018— The World Bank today announced a settlement with Tokyo-based NEC Corporation (NEC), an information technology services company that engaged in collusive practices when bidding for a contract under the Hanoi Urban Transport Development Project in Vietnam, which closed in 2016.
NEC was sanctioned with conditional non-debarment for 18 months, which means that it remains eligible to participate in World Bank-financed projects as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank-financed projects until the conditions for release set out in the settlement agreement are met.
The transport project was designed to promote more environmentally-sustainable transport modes and urban development plans in Hanoi, as well as lower Hanoi's transport-related greenhouse gas emissions. According to the facts described in the settlement agreement, the company arranged to improperly influence a tendering package that was part of the project, which is a collusive practice prohibited by the World Bank’s procurement guidelines.
The settlement agreement provides for conditional non-debarment in light of the company’s exceptional cooperation, disclosure of misconduct not previously known to INT, and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to enhancing its integrity compliance program in a manner consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.