World Bank Debars global engineering firm for a year and four months for fraudulent practices

On March 8, 2021, the World Bank Group announced the 16-month debarment of CNOOD Asia Limited (CNOOD), a Spanish engineering company, for engaging in a fraudulent practice in its bid submissions for contracts relating to the National Electrification Project in Myanmar.  According to the World Bank, CNOOD falsely indicated in these submissions that it had not agreed to pay any third parties in connection with the bids (or resulting contracts).  In fact, CNOOD had previously engaged a third party to perform “works in connection with the contracts” in exchange for five percent of the net profits from the contracts.   During its debarment period, CNOOD is ineligible to participate in World Bank projects, and is subject to cross-debarment by other multilateral development banks.

The World Bank explained that, in making its debarment decision, it considered as a mitigating factor that CNOOD disclosed its misrepresentation to the World Bank, and that CNOOD had voluntarily refrained from bidding on any World Bank-sponsored tenders during the duration of the World Bank’s investigation.  The World Bank also stated that, as a condition of its release from debarment after its 16-month term, CNOOD must develop an effective integrity compliance program.

World Bank News Release | World Bank Decision

 

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