On May 28, 2025, the World Bank announced the 4.5-year debarment of Philippines-based construction company L.S.D. Construction & Supplies for engaging in a “collusive, fraudulent, and corrupt practices” in connection with the Philippine Rural Development Project (the “Project”), which is aimed at increasing rural incomes in the Philippines and improving farm and fishery productivity in targeted areas. According to the World Bank, L.S.D. was debarred for submitting bids on two World Bank-financed contracts using the L.S.D. company name and technical and financial credentials and then secretly subcontracting the work on both contracts to undisclosed entities that could not qualify for contracts on their own. The bids, which were tendered between 2017 and 2018, were allegedly submitted in exchange for a fee that L.S.D. received from the unqualified entities. L.S.D. also allegedly made improper payments in order to secure one of the contracts and to ensure the timely processing of invoices during that contract.
According to the terms of the settlement agreement, L.S.D. will be ineligible to participate in World Bank-financed operations and projects throughout the debarment period. L.S.D. received a reduced period of debarment for acknowledging the misconduct and agreed to “meet specified corporate compliance conditions as a condition for release from debarment.” L.S.D. specifically agreed to implement an integrity compliance program in accordance with the World Bank’s Integrity Compliance Guidelines and to continue to cooperate fully with World Bank investigators.