World Bank debars two firms for fraud and collusion

World Bank President Robert Zoellick. The World Bank has debarred two companies working on projects in Bangladesh and Georgia for fraud and collusion. Photo by: Ryan Rayburn / World Bank / CC BY-NC-ND

The World Bankdebarred two companies working on projects in Bangladesh and Georgia for fraud and collusion following an investigation by the bank’s Integrity Vice Presidency.

China First Metallurgical Construction Corp., which was working on the bank’s Dhaka Urban Transport Project in Bangladesh, is debarred for three years due to fraudulent misconduct.

The decision means CFMCC will not be eligible for contracts under any project financed or executed by the World Bank Group. It will also not be allowed to participate in the preparation or implementation of such projects throughout the debarment period.

CFMCC’s debarment also applies to organizations it directly or indirectly controls. 

Meanwhile, the financial institution also debarred Oztas Insaat, Inssat malzemeleri Ticaret Anonim Sirketi for collusive practices in relation to the East-West Highway Improvement Project in Georgia. The debarment period is three years, but the bank says this may be reduced to two years if the company cooperates with the INT and implements an effective corporate compliance program.

Leonard McCarthy, INT vice president, said the World Bank is committed to “leveraging its investigative and preventive resources to bring an end to corruption.” The INT, which has a team of investigators and forensic accounts, investigates allegations of fraud, collusion and corruption in the bank’s projects.

The two cases are also eligible for cross-debarment with other multilateral development banks per an April 2010 agreement. This means CFMCC and Oztas cannot seek business from the African Development Bank Group, Asian Development Bank, the European Bank for Reconstruction and Development and the Inter-American Development Bank Group during the debarment period.

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About the author

  • Che de los Reyes

    As a senior staff writer, Che focuses on international development breaking news coverage as well as interviews and features. Prior to joining Devex, Che handled communications for local and international development NGOs and government institutions in the Philippines.