WASHINGTON, May 28, 2025—The World Bank Group today announced the 4.5-year debarment of L.S.D. Construction & Supplies (“L.S.D.”), a Philippines-based construction company, in connection with collusive, fraudulent, and corrupt practices as part of the Philippine Rural Development Project.
The project aims to increase rural income and enhance farm and fishery productivity in targeted areas in the Philippines. According to the facts of the case, between 2017 and 2018, L.S.D. entered into two undisclosed arrangements with entities to bid on two World Bank-financed contracts using L.S.D.’s name, and its technical and financial credentials, in exchange for a fee. L.S.D. secretly subcontracted the works under both World Bank-financed contracts to these entities, which did not have the financial or technical capacities to qualify for the respective contracts. Additionally, L.S.D. made a payment to improperly ensure its receipt of one of the contracts and to secure the timely processing of invoices during contract implementation. These acts constitute collusive, fraudulent, and corrupt practices under the World Bank’s Anti-Corruption Guidelines.
The debarment makes L.S.D., and any firms or individuals that it controls, ineligible to participate in projects and operations financed by institutions of the World Bank Group. The debarment is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified integrity compliance conditions as a requirement for release from debarment.
The settlement agreement provides for a reduced period of debarment in light of L.S.D.’s cooperation and voluntary remedial actions. As a condition for release from sanction, under the terms of the settlement agreement, the company commits to developing and implementing integrity compliance measures that reflect the relevant 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 L.S.D. 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.
