PRESS RELEASE January 29, 2019

World Bank Group Announces Settlement with Brazilian Subsidiary of Odebrecht

WASHINGTON, January 29, 2019— The World Bank today announced the three-year debarment of Brazil-based construction and engineering company Construtora Norberto Odebrecht S.A. in connection with fraudulent and collusive practices during its participation in the World Bank-financed Río Bogotá Environmental Recuperation and Flood Control Project in Colombia.

The debarment makes Construtora Norberto Odebrecht, which is the construction and engineering subsidiary of the global firm Odebrecht S.A. and the largest such firm in Latin America, ineligible to participate in World Bank-financed projects. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.

The project was designed to assist the Colombian government in improving water quality, reducing flood risks, and creating multi-functional areas along the Bogotá River, with the goal of making the river an environmental asset for the Bogotá Distrito Capital metropolitan region. Construtora Norberto Odebrecht engaged in fraudulent practices by failing to disclose fees paid to commercial agents during the tender prequalification and bidding processes. These agents assisted the company in obtaining confidential information.  

Constructora Norberto Odebrecht, assisted by one of the agents to which it had paid undisclosed fees, further sought to improperly influence the tendering package that was part of the project, engaging in collusive practices prohibited by the World Bank’s procurement guidelines.

The settlement agreement provides for a reduced period of sanction in light of the company’s cooperation and voluntary remedial actions, including encouraging honest disclosures by employees, producing documentation classified as privileged, and coordinating internal investigations with INT. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program 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.

The debarment of Construtora Norberto Odebrecht S.A. qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.


Press Release no 2019/121/INT

Contacts

In Washington
Julia Oliver
(202) 458-9405
joliver@worldbank.org
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