October 12, 2020

Indian engineering company debarred by World Bank

On October 7, 2020, the World Bank Group announced the debarment of Kalpataru Power Transmission Ltd., an Indian engineering and construction services company, for non-contested fraudulent practices.  The twelve month and one day debarment was imposed in connection with Kalpataru’s work on energy projects in the Democratic Republic of the Congo and in Egypt.

According to the World Bank, Kalpataru failed to disclose intended payments to third parties when it submitted bids for the DRC and Egypt projects in 2010 and 2012, respectively.  The company qualified for a reduced period of sanction due to its cooperation, voluntary remedial actions, and voluntary restraint from participation in World Bank-financed projects.  As a condition of release from sanction, the settlement requires a commitment on the part of Kalpataru to enhancing its integrity compliance program in conformance with the principles established in the World Bank Group Integrity Compliance Guidelines, and continued cooperation with the Integrity Vice Presidency.

Following the 12 month and one day debarment, Kalpataru will be conditionally non-debarred, meaning it will be eligible to participate in World Bank-financed projects provided it complies with the terms of the settlement.  If the company fails to comply, the conditional non-debarment will revert to debarment with conditional release, meaning the company will not be allowed to participate in World Bank projects until all the conditions for release in the settlement agreement are satisfied.  

World Bank press release