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PRESS RELEASE July 1, 2020

World Bank Group Debars Yooshin Engineering Corporation

WASHINGTON, July 1, 2020 — The World Bank Group today announced the 13-month debarment of Yooshin Engineering Corporation (“Yooshin”), a general engineering and construction supervision company based in the Republic of Korea, in connection with fraudulent practices as part of the Aviation Investment Project in Vanuatu.

The debarment makes Yooshin ineligible to participate in projects and operations financed by institutions of the World Bank Group. 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 improve the operational safety and oversight of international air transport and associated infrastructure in Vanuatu. According to the facts of the case, during negotiations for a consulting contract to undertake supervision services at three major airports in Vanuatu, Yooshin failed to disclose in writing the unavailability of two key experts, despite attempts to secure their commitment. Yooshin proceeded to sign the contract before disclosing the experts’ unavailability or seeking their replacement. This is a fraudulent practice under the World Bank’s Consultant Guidelines.

Under the terms of the settlement agreement, Yooshin will not be eligible for any World Bank Group-financed contracts for 13 months, followed by an additional period of conditional non-debarment of 17 months. While under conditional non-debarment, Yooshin will resume being eligible to participate in World Bank Group-financed operations as long as it complies with its obligations under the settlement agreement.

The settlement agreement provides for a reduced period of debarment in light of the company’s admission of the misconduct, cooperation, and voluntary remedial actions. 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 Yooshin 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: 2020/243/INT

Contacts

In Washington
Daniel Nikolits
(202) 473-2475
dnikolits@worldbankgroup.org
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