World Bank Debars Bangladesh Consultancy for 19 Months Over Fraud

According to the case findings, MEPC submitted false financial documents during procurement and false invoices for internet expenses during the implementation of a contract.

The World Bank Group has imposed a 19-month debarment with conditional release on Modern Engineers Planners and Consultants Ltd. (MEPC), a Bangladesh-based private limited company. The sanction concerns fraudulent practices connected to the Modern Food Storage Facilities Project in Bangladesh. During the debarment, MEPC is ineligible to participate in projects and operations financed by institutions of the World Bank Group.

According to the case findings, MEPC submitted false financial documents during procurement and false invoices for internet expenses during the implementation of a contract. The World Bank Group classified both forms of misconduct as fraudulent practices under its Consultant Guidelines. The company admitted culpability and responsibility for the conduct through a settlement agreement that includes the sanction and commitments to address its integrity practices.

The underlying project was designed to increase the grain reserves available to households following disasters and improve the efficiency of grain storage in Bangladesh. Its purpose was to strengthen the country's ability to meet food needs after emergencies through better storage arrangements. The announced sanction addresses MEPC's conduct during procurement and contract implementation associated with that project.

Cooperation and remedial action reduced the sanction

The settlement provides for a reduced debarment period under the World Bank Group Sanctioning Guidelines, recognising MEPC's cooperation with the investigation. The decision takes account of voluntary remedial measures, including internal action to address the misconduct. Those steps formed part of the basis for the agreed sanction, alongside the company's admission of responsibility.

Release depends on integrity compliance commitments

MEPC's release from the sanction is conditional, requiring the company to develop integrity compliance measures reflecting the principles in the World Bank Group Integrity Compliance Guidelines. The commitment requires the company to address its compliance practices as part of the settlement. MEPC must continue to cooperate fully with the World Bank Group's Integrity Vice Presidency, making ongoing cooperation another obligation under the agreement.

Other development banks may enforce the debarment

The sanction qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions. Signed on 9 April 2010, that agreement provides the basis for participating institutions to recognise and enforce qualifying debarment decisions. MEPC could therefore face restrictions on participation in projects financed by other development banks, extending the potential consequences beyond World Bank Group operations.