WASHINGTON, March 13, 2024 — The World Bank Group today announced the conditional non-debarment of Japan-based Nippon Koei Latin America – Caribbean Co., Ltd. (“NKLAC”), a company that provides engineering services, until June 22, 2025, in connection with fraudulent practices under three World Bank-financed projects.
NKLAC was sanctioned with conditional non-debarment, which means that it remains eligible to participate in projects and operations financed by institutions of the World Bank Group as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met. Under the settlement agreement, the company does not contest responsibility for the underlying sanctionable practices.
The Salado Integrated River Basin Management Support Project in Argentina was designed to enhance flood protection and strengthen the capacity of the institutions responsible for integrated water resources monitoring and management in the Salado River Basin. The Guayaquil Wastewater Management Project in Ecuador was designed to increase access to improved sanitation services and to reduce wastewater pollution in selected areas of the City of Guayaquil. According to the facts of the case, under both projects NKLAC failed to disclose information about and payments to be paid to outside consultants in connection with the tenders and/or contract execution, which are fraudulent practices. The Manta Public Services Improvement Project in Ecuador was designed to increase the quality and sustainability of public services for water, sanitation, and urban mobility. According to the facts of the case, as part of its bid for this project, NKLAC submitted curricula vitae containing falsified signatures of non-key personnel, without their knowledge or consent, which is a fraudulent practice.
The settlement agreement provides for a reduced period of sanction in light of the company’s cooperation and compliance remediation. As a condition for release from sanction under the terms of the settlement agreement, the company commits to implementing integrity compliance measures that reflect the principles 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. Nippon Koei Co., Ltd. has signed this settlement agreement as a non-sanctioned party, as it has ultimate oversight for the compliance of its group, including NKLAC.
Contacts:
In Washington: Stephanie A. Crockett, +1 202 473 6871, scrockett@worldbank.org
For more information, please visit: www.worldbank.org/integrity
