Contact In Washington: Edith Wilson (202) 473-1104 ewilson1@worldbank.org WASHINGTON, November 22, 2004 ¾ The World Bank announced the debarment for four years of one individual and one firm for fraudulent practices in relation to the World Bank-financed “Croatia Health System Project”(CHSP). This firm 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 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/anticorruption. World Bank Country Director Anand Seth welcomed the ruling saying that “The World Bank is committed to making sure the money invested in this project results in a better health care for the people of Croatia. The sanctions we have taken against this contractor show our readiness to safeguard the procurement process in Bank-funded projects and to support better quality health care services in Croatia.” The BIS Healthcare project team’s performance exhibited a number of shortcomings that contributed to the delays in the assessment phase of the pilot project. This poor performance underscores the significance of the fraudulent misrepresentations committed by the contractor. As a result of the poor performance of the firm, project officials, in coordination with the World Bank, had decided not to extend the contract of BIS Healthcare at the original date of its closure, September 27, 2002, although the assignment was not completed. The World Bank investigation was handled by the World Bank’s Department of Institutional Integrity (INT) and involved the collection and analysis of documents, as well as interviews with many witnesses in Croatia, the United Kingdom, and the United States. The World Bank’s Sanctions Committee issued notices of debarment to the firm and the individual allegedly involved in fraudulent practices during the project. The firm and the individual were granted the opportunity to dispute the charges. The debarment decisions were based on a preponderance of evidence that the respondents engaged in fraudulent practices during the selection process. Under the World Bank consultant guidelines, fraudulent practice is defined as a “misrepresentation of facts in order to influence a selection process, or the execution of a contract to the detriment of the Borrower.” BIS Healthcare and its principal, Mr. Bruno Gomes, were sanctioned for failure to comply with the Consultant Guidelines. The experience and qualifications of the principal as well as the qualifications and certifications of BIS Healthcare were misrepresented. The Sanctions Committee found fraudulent practice in the numerous misrepresentations in the contractor’s proposal. The Croatia Health System Project was designed to enhance Croatia’s capacity to achieve a more efficient, effective, and financially sustainable health system in the medium term. The CHSP consists of several components such as health services delivery, public health, pharmaceutical waste disposal, system-wide initiatives, and project management. The CHSP is financed through a $29 million IBRD loan and its expected closing date is June 30, 2005. The assignment of BIS Healthcare was originally to provide consulting services to assist in the integration of a pilot health services component in Koprivnica-Krizevci County under the CHSP project. The contract between the Ministry of Health and BIS Healthcare was signed on March 27, 2001 for a total amount of US$ 2.42 million and expired on September 27, 2002. At that time, due to delays in the implementation, only half of the original amount in the contract had been disbursed to BIS Healthcare. List of Debarred Firms and Individuals The firm and individual listed below have been debarred under the grounds of the January 1997 Consultant Guidelines 1.25(a)(ii). Their ineligibility period is for 4 years from October 25, 2004 to October 25, 2008. Mr. Bruno Gomes of Kent, United Kingdom BIS Healthcare Group of Kent, United Kingdom 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 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 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, 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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