WASHINGTON, April 20, 2023 — The World Bank Group today announced the two-year debarment of Mr. Selçuk Yorgancioğlu, a Turkish national, in connection with a fraudulent practice as part of the Abraaj Turkey Fund I Project.
The debarment makes Mr. Yorgancioğlu, and any firms that he controls, ineligible to participate in projects and operations financed by institutions of the World Bank Group for a period of twenty-four months. It is part of a settlement agreement that was negotiated with Mr. Yorgancioğlu, under which he admits responsiblity for the underlying sanctionable practice and agrees to meet specified integrity compliance conditions for release from debarment.
The sanction stems from an investigation that was conducted by the World Bank Group’s Integrity Vice Presidency and highlights the institution’s efforts to promote high integrity standards in International Finance Corporation (IFC)-financed projects. The settlement demonstrates how the agreement, and World Bank Group sanctions in general, can be used to help promote better business practices by individuals and companies engaged in private sector development projects.
The project, which is supported by IFC, invests in medium-sized businesses operating primarily in consumer goods and services, financial services, logistics and retail in Türkiye. According to the facts of the case, Mr. Yorgancioğlu was part of the investment team that omitted to disclose material and relevant facts about the financial situation of one of the investee companies, which led to the misrepresentation of the investment information and thus misled IFC. This constitutes a fraudulent practice as defined in the Sanctionable Practices – IFC’s Definitions & Interpreative Guidance.
The settlement agreement provides for a reduced period of debarment in light of Mr. Yorgancioğlu’s cooperation, acceptance of responsibility, corrective action, and voluntary restraint from pursuing future opportunities with the World Bank Group. As a condition for release from sanction under the terms of the settlement agreement, Mr. Yorgancioğlu commits to undertaking corporate ethics training that demonstrates a commitment to personal integrity and business ethics; commits that any firms that he controls will implement a corporate ethics training program; and commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
The debarment of Mr. Yorgancioğlu 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.
Contacts:
In Washington: Daniel Nikolits, (202) 473-2475, dnikolits@worldbankgroup.org
For more information, please visit: www.worldbank.org/integrity
