The World Bank Wednesday released the World Bank Group Sanctions System Annual Report FY18, which revealed that several Indian companies and individuals have been banned by the multilateral lending institute for fraud and corrupt practices.
The World Bank Group Sanctions System aims to combat fraud and corruption in projects, and to reduce risk while helping to bring more private investments into developing countries. 40 firms and individuals have been temporarily suspended by the bank compared to 2017 when 22 firms and individuals were suspended.
Olive Health Care and Jay Modi from India have been barred for 10 and seven years respectivily from the World Bank for their fraudulent and corrupt practices on a project in Bangladesh.
India-based Angelique International Limited, who had a World Bank project in Ethiopia and Nepal, have been prevented from doing business with the World Bank for four years on similar charges. Family Care, who were working on projects in Argentina and Bangladesh, suffered the same fate.
Among other Indian companies barred by the World Bank for less than a year are Tatve Global Environment Pvt Ltd, SMEC (India) Pvt Ltd, and Macleods Pharmaceuticals Ltd.
Five firms were sanctioned with conditional restictions in addition to the 78 outlawed companies. This means they have to meet certain conditions posed by the World Bank or else they will also be banned .
The inaugural report, the bank said, is the result of efforts by the Integrity Vice Presidency (INT), the Office of Suspension and Debarment (OSD), and the Sanctions Board to prepare a joint overview of the Bank Group Sanctions System and its activities over the past year.
The INT initiated 68 new investigations into allegations of misconduct in Bank Group-funded projects. The Sanctions Board, the second tier of the system, issued sanctions against 20 firms and individuals that had appealed their cases. An additional 39 parties were sanctioned in connection with 22 settlement agreements.