Contacts: Edith Wilson 202 473-1104 ewilson1@worldbank.org Merrell Tuck-Primdahl 202 473-9516 Mtuckprimdahl@worldbank.org Washington, DC, July 21, 2005 ¾ The World Bank debarred ZAOLanck of St. Petersburg and Mr. Vladimir Vinokurov for fraudulent practices, as defined in the World Bank Procurement Guidelines, in relation to the World Bank-financed “Education Innovation Project” (EIP) in the Russian Federation. The company and the individual will be ineligible to receive any new World Bank-financed contracts for the periods of their debarments. These actions are part of the World Bank’s broad anticorruption efforts initiated in 1996. The case concerned fraudulent practices committed during a procurement process for the supply of hardware and software to the Moscow State University under the EIP. The project was administered by the National Training Institute (NTF), a non-profit organization established in 1994 by the Russian Government. Mr. Vladimir Vinokurov, Deputy General Director of the company ZAO Lanck, submitted a letter to the NTF from a manufacturer of information technology equipment which had been altered in order to make it appear that Lanck’s bid met the procurement requirements. Once the fraud was detected by the NTF, the contract was awarded to a different bidder. Mr. Vinokurov of Moscow is debarred for four years from receiving Bank-financed contracts. The company in question, ZAO Lanck of St. Petersburg, is debarred for three years. Both debarments were made in accordance with World Bank Procurement Guidelines 1.15 (a) (ii). Kristalina Georgieva, Country Director for the Russian Federation, welcomed the ruling saying, “World Bank funds must be used to improve the lives of the Russian people. Effective and efficient use of these resources relies on an open, transparent, competitive bidding process. Luckily, due to the vigilance of Russian officials, this fraud was caught before funds were disbursed and the project was not harmed.” The World Bank disbursed US $63.6 million for the Russian Education Innovation Project. Approved in April 1998, it was designed to improve the quality of social science education and encourage better governance systems and efficiency in the use of resources in selected higher education institutions. The project was closed in December 2004 and was rated very successful. The World Bank investigation was handled by the Department of Institutional Integrity (INT) and involved the collection and analysis of documents as well as the interviewing of many witnesses in Russia. The World Bank’s Sanctions Committee issued notices of debarment to both the firm and the individual involved in the described fraudulent practices. Both the firm and the individual were granted the opportunity to dispute the charges. Background Information
World Bank funds are provided to support the efforts of member countries to achieve prosperity and stability through sustainable and equitable growth and to reduce poverty. The World Bank has the responsibility to ensure that the loans and credits it extends, and the trust funds that it administers, are used for their intended purposes. This policy is enforced through a comprehensive array of rules and procedures aimed at ensuring high standards of integrity, transparency, and accountability in World Bank-supported projects. The procurement procedures for World Bank-financed projects are monitored by World Bank staff to ensure that the process is free from fraudulent practices and corruption. An annual integrity report on investigations and sanctions of staff misconduct and fraud and corruption in World Bank-financed Projects is posted on the World Bank website. See http://www.worldbank.org/integrity The World Bank Department of Institutional Integrity (INT) is charged with investigating allegations of fraud and corruption in World Bank-financed projects. The department reports directly to the President of the World Bank and is staffed by a multinational team of more than fifty professionals, including investigators, legal specialists, forensic accountants, procurement specialists and experienced World Bank project managers. Additional information can be found at http://www.worldbank.org/integrity.
Allegations of fraud and corruption related to World Bank-financed projects can be reported to 1-800-831-0463 24 hours a day and an international AT&T operator with international translation is available. To reverse charges (collect calls) dial 704-556-7046. Reports may be anonymous, and can also be made in person or online at: investigations_hotline@worldbank.org Over the past five years, the World Bank Group has sanctioned over 300 companies and individuals. Debarments can be permanent or for a lesser period. A list of debarred companies is posted on the website below. The sanctions process is an internal administrative process within the World Bank. It provides for due process to all parties involved in the sanctions process. For more information on World Bank procurement and sanctions, see: http://www.worldbank.org/procure For more information on the World Bank’s anticorruption policies and activities, see: http://www.worldbank.org/anticorruption. |
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