World Bank Debars Niger Construction Firm Over Fraud Case

According to the World Bank, the company and its director submitted false experience documents and a fraudulent tax certificate as part of a prequalification application for a contract under the project.

The World Bank Group has barred Niger-based construction company Entreprise Babati and its owner and Director-General, Babati Sayid Ali Ahmed, from participating in Bank-financed projects for 35 months after finding they engaged in fraudulent practices during a procurement process for a road infrastructure project in Niger.

The sanctions relate to the Enhancing Niger Northeastern Connectivity Project, which is designed to improve transport links, road safety and access to essential socio-economic infrastructure for communities along the Zinder–Agadez Road corridor.

False Documents Used in Bid Process

According to the World Bank, the company and its director submitted false experience documents and a fraudulent tax certificate as part of a prequalification application for a contract under the project.

The Bank determined that the use of these falsified documents constituted a fraudulent practice under its sanctions framework. As a result, both the company and its owner have been declared ineligible to participate in projects and operations financed by World Bank Group institutions during the debarment period.

Settlement Includes Admission of Responsibility

The sanctions were imposed through two settlement agreements in which Entreprise Babati and Babati Sayid Ali Ahmed admitted responsibility for the misconduct.

The World Bank said the 35-month debarment period was reduced because both parties cooperated with the investigation, in line with the Bank Group's Sanctioning Guidelines.

Compliance Measures Required

Before becoming eligible to participate in future World Bank-funded projects, the company must develop and implement an integrity compliance programme that meets the standards outlined in the Bank Group Integrity Compliance Guidelines.

Babati Sayid Ali Ahmed has also agreed to complete corporate ethics training as part of the settlement. Both the company and its director have committed to continuing full cooperation with the World Bank Group's Integrity Vice Presidency during the implementation of the agreements.

Other Development Banks May Enforce Ban

The World Bank said the debarments qualify for cross-debarment under the Agreement for Mutual Enforcement of Debarment Decisions, signed by several multilateral development banks in 2010.

This means other participating international development banks may also prohibit Entreprise Babati and Babati Sayid Ali Ahmed from taking part in projects they finance, extending the impact of the sanctions beyond World Bank-funded operations.