The World Bank Group has debarred a Turkey-based engineering company, citing fraudulent and obstructive practices in a World Bank-funded emergency infrastructure restoration programme in Iraq.
The bank said Kontrolmatik Teknoloji Enerji Ve Mühendislik submitted fabricated past-performance documents in bidding for a contract in the programme, and impersonated a third party to verify them.
Furthermore, the bank said, a Kontrolmatik employee impeded the World Bank’s probe by making false statements to investigators.
The sanction is part of a settlement agreement under which Kontrolmatik admits culpability for the sanctionable practices and agrees to meet specified corporate compliance conditions.
The $750m “Emergency Operation for Development Project” began in 2015 to rebuild damaged infrastructure and restore public services in targeted municipal areas.
Set to run until 2026, the programme aims to restore electricity supply, waste, water and sanitation services, transportation and housing.
Two-year sanction
Kontrolmatik’s two-year sanction comes in two phases.
In the first year, Kontrolmatik won’t be able to bid for projects financed by the World Bank Group.
After that, if the company complies with its obligations under the settlement agreement, it will be able to bid under a “conditional non-debarment”.
Kontrolmatik also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
The bank said it reduced Kontrolmatik’s sanction owing to the company’s “significant cooperation” and its voluntary remedial actions.
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