Contacts: Michelle Porvaznik (202) 458-7716 mporvaznik@worldbank.org WASHINGTON, June 2, 2009—The World Bank today announced that it has debarred a Ukrainian non-governmental organization, a Turkish firm and two individuals for having engaged in fraud in relation to World Bank-financed projects. The debarments, which resulted from investigations by the World Bank’s Integrity Vice Presidency (INT), are part of the Bank’s broader anti-corruption agenda. Leonard McCarthy, Vice President for Integrity for the World Bank Group, said, “The outcomes of these cases demonstrate that the Bank is making significant strides in addressing fraud and corruption, which is especially important given the current economic crisis.” Two Ukrainian entities debarred The Ukrainian Centre for International Integration (UCII) is ineligible to be awarded a contract under a Bank Group-financed operation for a period of two years, and its former Executive Director, Natalia Yasko, is debarred for a period of three years. "UCII had received a trust fund grant to assist the Ukrainian government in the preparation of a program of institutional and structural reforms under the Bank-financed Second Programmatic Adjustment Loan, but evidence indicated that UCII had submitted a falsified CV as part of its proposal." The government terminated the contract before any payments were made, and Yasko has since stepped down. No evidence connects UCII’s current management with the misconduct. The alleged fraud was first reported to the government-run Project Implementation Unit (PIU), which researched the allegation and shared its findings with the Bank. The World Bank’s Integrity Vice Presidency (INT) then conducted an investigation and found evidence that confirmed the suspicion of the PIU. After one year, UCII’s debarment may be reduced by one year if the organization has put in place an effective corporate compliance program acceptable to the World Bank, and has implemented this program in a manner satisfactory to the World Bank. In the case of Yasko, after two years, the period of debarment applicable to any organization she directly or indirectly controls may be reduced by one year if such organization has likewise put in place and implemented an effective compliance program. Turkish firm and individual also sanctioned In addition, Enerji Sistem Insaat ve Is Makinalari Sanayi Ticaret Limited Sirketi—ISTANBUL (Enerji Sistem) and its proprietor, Alamdar Esetoglu Galandarov, have been debarred for two years. In the case of Enerji Sistem, an INT investigation found evidence that Galandarov—acting on behalf of the company—submitted a false bank reference letter in an attempt to win a multi-million dollar contract providing construction equipment for the Greater Baku Water Rehabilitation Project in Azerbaijan. Neither Enerji Sistem nor Galandarov can have their debarments reduced. The debarments represent a substantial increase in the number of sanctions imposed by the Bank since last year. So far this fiscal year, the Bank has debarred thirteen firms and individuals. Since 1999 the World Bank Group has debarred 355 firms and individuals for their involvement in fraud and corruption in Bank Group-financed projects.
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