May 27, 2024

World Bank sanctions “Interyer Inşaat” Məhdud Msuliyyətli Cəmiyyəti for fraudulent practices

On May 13, 2024, the World Bank published a Notice of Uncontested Sanctions Proceedings regarding the debarment of “Interyer Inşaat” Məhdud Məsuliyyətli Cəmiyyəti.  The Notice stated Interyer Inşaat has been debarred from participating in World Bank-financed projects for 2 years and 8 months in connection with “fraudulent practices” it engaged in with respect to the (1) Uzbekistan Bukhara and Samarkand Sewerage Project and (2) the Uzbekistan South Karakalpakstan Water Resources Management Improvement Project.

On November 14, 2023, the World Bank’s Chief Suspension and Debarment Officer issued a Notice of Sanctions Proceedings to Interyer Inşaat, accusing the company of (1) misrepresenting its past work experience as part of a joint venture’s bid for a contract to upgrade and reconstruct a wastewater treatment plant and (2) misrepresenting its “financial performance and annual turnover” as part of a bid for a canal construction contract.  The World Bank stated that the company did not contest the allegations, resulting in the World Bank implementing the recommended sanctions set forth in the Notice of Sanctions Proceedings, specifically, the 2 years and 8 months debarment.

The World Bank said that the length of the debarment reflected Interyer Inşaat’s engagement in a “repeated pattern of misconduct in multiple bids regarding multiple projects.”  The World Bank also considered, as a mitigating factor, the “passage of time since the misconduct occurred and the Bank became aware of it.”  As an additional condition of release from debarment, Interyer Inşaat is required to (1) take appropriate remedial measures to address the alleged sanctionable practice and (2) implement an integrity compliance program in accordance with World Bank’s Sanctions Procedures.

World Bank – Notice of Uncontested Sanctions Proceedings