September 18, 2019

Indonesian construction company debarred from World Bank projects for two years

On September 18, 2019, the World Bank announced the debarment of an Indonesian construction company, PT. Suburo Jayana Indah Corp (Sujainco), as part of a settlement agreement with the company.  The two-year debarment relates to Sujainco’s work for a World Bank-financed irrigation management project.  According to the World Bank press release, Sujainco arranged with a third party for other bidders to submit artificial and non-competitive bids for work on the irrigation management system project, allowing Sujainco to win the contract.  Moreover, Sujainco did not perform the work for the contract it won.  Instead, the World Bank stated that the work on the irrigation management system was performed by the third party with which Sujainco had colluded.  In addition, Sujainco submitted fraudulent documents to support its request for payment during the project.  Pursuant to the settlement, Sujainco acknowledged its participation in this scheme.  

In light of Sujainco’s cooperation with the World Banks’ investigation and Sujainco’s acceptance of responsibility, the World Bank imposed a reduced period of debarment.  As part of the settlement, Sujainco committed to developing a compliance program consistent with the World Bank guidelines.