Enforcing Accountability

[The World Bank - 08.10.2013] Enforcing Accountability

World Bank Debars Thang Long Infrastructure Development Joint Stock Company for Fraudulent Practices Relating to Development Projects in East Asia
This 2.5years debarment follows the companys acknowledgment of fraudulent Practices
The World Bank Group announced the debarment of Thang Long Infrastructure Development Joint Stock Company, a privately held company headquartered in Vietnam and its affiliates for a period of 2.5 years following the companys acknowledgment of fraudulent practices. The company submitted misrepresented documents as part of the bidding process for the Trust-Fund financed Mekong Delta Region Urban Upgrading Project; the Second Northern Mountains Poverty Reduction Project; and the Da Nang Sustainable City Development Project.
The debarment is part of a Negotiated Resolution Agreement (NRA) which acknowledges the companys cooperation. The 2.5 years debarment came into effect on October 2013. During this period, the company and its affiliates will not qualify for any contract financed by the World Bank Group. As part of the settlement, the company will also need to demonstrate full and satisfactory compliance with the World Bank Integrity standards.
"Fraud cases like this one represent an important area of investigations for the World Bank Integrity Vice Presidency, said Leonard McCarthy, World Bank Integrity Vice President. "At the Integrity Vice Presidency, we investigate fraud cases to ensure the credibility of technical assistance that our projects deliver as part of a sustainable and effective development solution.
Thang Long Infrastructure Development Joint Stock Companys debarment qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.
About the World Bank Integrity Vice Presidency
The World Bank Integrity Vice Presidency (INT) is responsible for preventing, deterring and investigating allegations of fraud, collusion and corruption in World Bank projects, capitalizing on the experience of a multilingual and highly specialized team of investigators and forensic accountants.
Key results of INTs work in FY12-13 include:
74 entities sanctioned in FY 13 including settlements where companies are debarred as a default sanction in addition to committing to cooperation with the Integrity Vice Presidency. These include the Canadian company SNC Lavalin and more than 100 of its affiliates and the Indian company Larsen and Toubro Limited among others.
253 jointly recognized debarments among MDBs that signed the Cross Debarment agreement.
Building precautions against fraud and corruption in high-risk projects.
The World Bank introduced its new App to report fraud and corruption allegations relating to its projects. The new App also complements other tools and information resources to support the detection of fraud and corruption red flags. The World Bank Integrity App is available for the IOS platform through the iTunes store.
Following Alstoms acknowledgment of misconduct in relation to a Bank-financed hydropower project in Zambia, the World Bank debarred Alstom Hydro France and Alstom Network Schweiz AG (Switzerland) - in addition to their affiliates - for a period of three years as part of a Negotiated Resolution Agreement between Alstom and the World Bank which also includes a restitution payment by the two companies totaling approximately $9.5 million.
The second meeting of the International Corruption Hunters Alliance brought together 175 senior enforcement and anticorruption officials from 6 regions, to inject momentum into global anti-corruption efforts.
Cooperation agreements in support of parallel investigations, asset recovery and information sharing with the UK Serious Fraud Office, the European Anti-Fraud Office, Interpol, the Korean Supreme Prosecutors Office, the Ethiopian Ethics and Anti-Corruption Commission, the Liberian Anti-Corruption Commission and several other national and international authorities.
Enhanced preventive training and forensic audits designed to identify and address red flags and integrity controls in World Bank-financed projects.

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