The World Bank has debarred two firms for engaging in corrupt and fraudulent practices in development projects.
These two rulings are eligible for cross debarment under an agreement with the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, World Bank Group and Inter-American Development Bank in April, which may allow for a collective enforcement of debarments.
U.S.-based firm Kwaplah International Trading Co., Inc. and its owner Sherlock Mahn have been barred by the World Bank from engaging in any of its programs for 12 years - the second longest debarment since the bank started implementing sanctions in 1999 - for corrupt and fraudulent practices in the bank’s projects implemented in the Democratic Republic of Congo, Tanzania, Ethiopia, Ukraine, Ghana, Gambia and Liberia.
The World Bank has debarred another company, Elkri, for three years for committing fraudulent practices in an Albanian project supported by the Washington-based lender.
The bank has also sanctioned 12 companies previously debarred by ADB as part of the cross-debarment agreement. This is the very first batch of companies to be cross-debarred by the World Bank.