Media contact in Washington: Edith Wilson (202) 473-1104 Email: ewilson1@worldbank.org WASHINGTON, March 28, 2005 ¾ The World Bank announced the debarment of 5 individuals and 6 firms for collusive practices in relation to the World Bank-financed “Water Supply Urgent Rehabilitation Project” (WSURP) in Albania. These firms and individuals will be ineligible to receive any new World Bank-financed contracts for the periods of their debarments, ranging in this case from one to five years. One individual was also given a public letter of reprimand. These actions are part of the World Bank’s broad anticorruption efforts initiated by President James Wolfensohn in 1996. More information on the World Bank’s overall anticorruption policies and activities can be found at http://www.worldbank.org/brief/corruption. World Bank Country Manager Mr. Nadir Mohammed welcomed the ruling saying that “The actions of the companies and their directors were designed to deprive the borrowing country of access to competitive pricing in establishing bid prices at artificially high levels. The sanctions taken against the companies show our readiness to safeguard the procurement process in Bank-funded projects and to ensure that the Albanian people benefit from development programs and economic growth.” The World Bank investigation was handled by the World Bank’s Integrity Department (INT) and involved the collection and analysis of documents as well as the interviewing of many witnesses in Albania. The World Bank’s Sanctions Committee issued notices of debarment to firms and individuals involved in fraudulent practices under the project. All of the firms and individuals were granted the opportunity to dispute the charges. The debarred companies and their respective directors were sanctioned for serious misconduct, in direct contravention of the World Bank’s Procurement Guidelines. The companies engaged in collusion by agreeing with each other to submit fraudulent bids containing artificial, non-competitive prices. This collusion occurred in order to guarantee the success of Pacani Sh.p.k.’s bid for a contract to conduct maintenance and repair works on the Durres Transmission Main for the Ministry of Public Works in Albania. The Project’s objective was to rehabilitate on an emergency basis the water supply system in the cities of Durres, Fier, Lezhe, and Saranda in Albania. Specifically, the project sought to improve the quality and quantity of water supply through provision and installation of specific equipment as well as through the creation of contracts for critical on-site repairs of visible leaks in the water distribution network. List of Debarred Firms and Individuals The firm and individual listed below are debarred under the grounds of Procurement Guidelines 1.15(a)(ii). Their ineligibility period is for 5 years from March 3, 2005 to March 3, 2010: Pacani of Tirana, Albania Mr. Pjeter Pacani of Tirana, Albania The firms and individuals listed below have been debarred under the grounds of Procurement Guidelines 1.15(a)(ii). Their ineligibility period is for 2 years from March 3, 2005 to March 3, 2007: Varaku of Durres, Albania Mr. Shpetim Varaku of Durres, Albania INA of Tirana, Albania Mr. Ferdinand Caushi of Tirana, Albania The firms and individuals listed below have been debarred under the grounds of Procurement Guidelines 1.15(a)(ii). Their ineligibility period is for 1 year from March 3, 2005 to March 3, 2006: Adriatik 1 of Durres, Albania Mandi 1 of Mammurras, Albania Mr. Dalip Kuqi of Mammurras, Albania Project 2000 of Tirana, Albania Mr. Illirjian Loka of Tirana, Albania A letter of reprimand will be posted for one year with regard to Mr. Ardian Mustafaraj, President of Adriatik 1. Background Information World Bank funds are provided to help developing countries 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. The World Bank Integrity Department (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 forty 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 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 procurement and sanctions and a list of all debarred firms, 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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