The World Bank’s Integrity Vice Presidency (INT) investigates allegations of fraud and corruption in Bank Group-financed operations or involving Bank Group staff. As a neutral fact-finder, INT refers its findings to decision makers such as Regional Operations, the President, and the Bank’s Sanctions Board (for project-related cases); and the Human Resources Services Vice President (for staff cases) for further action. Should an investigation’s findings indicate that a partner government’s laws may have been broken, INT refers those findings to the relevant government authorities. By combining investigation with an enhanced focus on prevention, INT promotes a comprehensive approach to anti-corruption. Recent highlights of the unit’s work include: Implementation of Volcker Panel recommendations completed. The Volcker Review Panel’s 18 recommendations have contributed significantly to INT’s role in supporting the Bank’s Governance and Anticorruption program. In this fiscal year, the remaining recommendations were implemented. This included the transfer of investigative responsibility for certain forms of staff misconduct to the Ethics Office, the appointment of an external Sanctions Board chair, and the creation of clear performance metrics. More cases sent to sanctions, more entities debarred. Preventing corrupt entities from misusing Bank funds is a critical outcome of INT’s work. In FY 2009, the World Bank’s Sanctions Board debarred 13 entities, preventing them from participating in future Bank-financed projects. In addition, INT sought sanctions in 40 important cases, and when these cases are decided, up to an additional 110 entities could face sanctions. Further, a recent reform to the sanctions process enables the Bank to temporarily suspend a company’s eligibility to bid in Bank-financed projects when INT has established that the company has engaged in at least one sanctionable practice. The investigation is ongoing. New tools and advisory services led to enhanced prevention. Working with key partners in the Bank, INT sought to assist operational staff to build preventive measures into everyday Bank operations. A new Company Risk Profile Database is being piloted. It should help Bank staff perform more thorough due diligence before awarding a contract, alerting them to firms in respect of which INT has pertinent information. The increased outreach and advisory services were aimed at assisting staff to make more informed decisions regarding fraud and corruption risks in their projects. Landmark settlement with Siemens AG. Acknowledging past misconduct in its global business, Siemens AG and all of its consolidated subsidiaries and affiliates agreed to refrain from bidding on Bank business for two years. In addition, Siemens OOO, its Russian subsidiary, faces up to a four-year debarment for fraud and corruption-related misconduct. Siemens AG also committed to pay US$100 million during the next 15 years to support anti-corruption work. The settlement lays the groundwork for the Bank to more expediently deal with companies that admit wrongdoing. To receive allegations, INT maintains a fraud and corruption hotline that an independent third partyoperates: 1.800.831.0463 (toll free) or 1.704.556.7046 (collect). Allegations can also be sent directly to INT via email to: investigations_hotline@worldbank.org.
For more information about INT, visit www.worldbank.org/integrity. Media Contact: Michelle Porvaznik, (202) 458-7716, mporvaznik@worldbank.org Updated August 2009 | 
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