WASHINGTON, July 1, 2020 — The World Bank Group today announced the 15-month debarment of Peru-based Aaron Ingenieros Constructores & Consultores E.I.R.L., a company that provides road freight transport services, in connection with a fraudulent practice as part of the Support to the Subnational Transport Program Project in Peru.
The debarment makes Aaron Ingenieros Constructores & Consultores E.I.R.L. ineligible to participate in projects and operations financed by institutions of the World Bank Group. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.
The project was designed to facilitate sustainable road access by rural populations, reduce costs on rural roads connected to priority transport corridors, and strengthen the decentralized management of roads. According to the facts of the case, the company misrepresented its financial capacity through false letters of credit to meet the requirements for World Bank-financed tenders, which is a fraudulent practice.
The settlement agreement provides for a reduced period of debarment in light of the company’s cooperation and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
The debarment of Aaron Ingenieros Constructores & Consultores E.I.R.L. qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.
