WASHINGTON, February 26, 2025—The World Bank Group today announced the 18-month debarments of HIDRALRICA Distribução de Tubos e Conexões Eireli, a hardware and tools retailer, and its Director, Mr. Ricardo Checa Hernandez. The debarments are in connection with a collusive practice with another bidder that occurred under the SABESP – Improving Water Service Access and Security in the Metropolitan Region of São Paulo Project.
The project aims to increase water services and access to vulnerable people and contribute to the reduction of water losses and pollution loads in the Metropolitan Region of São Paulo. According to the facts of the case, the company and its owner coordinated the price and submission of electronic bids for the provision of polyethylene connectors with another bidder, which is a collusive practice according to the World Bank’s Anti-Corruption Framework.
The debarments make HIDRALRICA Distribução de Tubos e Conexões Eireli and Mr. Hernandez ineligible to participate in projects and operations financed by institutions of the Bank Group. They are part of settlements under which the company and Mr. Hernandez acknowledge responsibility for the underlying sanctionable practice and agree to meet specified corporate compliance conditions as a condition for release from debarment.
Those conditions include a commitment from both the company and the individual to develop and implement a corporate ethics training program that reflects the principles set out in the World Bank Group Integrity Compliance Guidelines. Further, Mr. Hernandez commits to completing individual corporate ethics training. The settlement agreements also provide for a reduced period of debarment in light of the company’s and Mr. Hernandez’s cooperation and voluntary remedial actions, and their continued commitment to fully cooperate with the World Bank Group Integrity Vice Presidency.
The debarment of HIDRALRICA Distribução de Tubos e Conexões Eireli and Mr. Hernandez qualify 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.
