Washington DC (BBN)- The World Bank (WB) Group has announced the debarment of SNC-Lavalin Inc. - in addition to over 100 affiliates - for a period of 10 years following the company’s misconduct in relation to the Padma Multipurpose Bridge Project in Bangladesh, as well as misconduct under another WB-financed project.
SNC-Lavalin Inc. is a subsidiary of SNC-Lavalin Group, a Canadian company, and represents more than 60 percent of its business.
The debarment is part of a negotiated resolution agreement between the WB and SNC-Lavalin Group following a World Bank investigation into allegations of bribery schemes involving SNC-Lavalin Inc. and officials in Bangladesh, a WB statement said on Wednesday.
While the investigation was ongoing, the World Bank’s Integrity Vice Presidency also learned of misconduct by SNC-Lavalin Inc. in relation to the World Bank-financed Rural Electrification and Transmission project in Cambodia.
“The debarment can be reduced to eight years if the companies comply with all conditions of the agreement,” the WB said, adding that the remainder of the SNC-Lavalin Group has been conditionally non-debarred for the same period of time.
Under this sanction, the remainder of SNC-Lavalin Group faces debarment if they fail to comply with the terms and conditions of the Agreement.
"This case is testimony to collective action against global corruption,” said Leonard McCarthy, World Bank Integrity Vice President. “Once we had evidence of the company’s misconduct, we referred the matter to the Royal Canadian Mounted Police whilst the World Bank finalized its investigation. Going forward, I hope that SNC-Lavalin’s commitment under this agreement represents meaningful action in deterring the risks of fraud and corruption to development projects.”
SNC-Lavalin’s misconduct involved a conspiracy to pay bribes and misrepresentations when bidding for WB-financed contracts in violation of the World Bank’s procurement guidelines.
Under the agreement, the SNC-Lavalin Group and its affiliates commit to cooperating with the WB’s integrity vice presidency and continuing to improve their internal compliance program.
“The debarment of SNC-Lavalin Inc. qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.”
BBN/SSR/AD-18Apr13-9:53 am (BST)
Washington DC (BBN)- The World Bank (WB) Group has announced the debarment of SNC-Lavalin Inc. - in addition to over 100 affiliates - for a period of 10 years following the company’s misconduct in relation to the Padma Multipurpose Bridge Project in Bangladesh, as well as misconduct under another WB-financed project.