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World Bank debars manufacturer for water-project fraud

The World Bank debarred a manufacturing company Wednesday for 30 months for fraud involving a water project in Uzbekistan.

Tashkent-based Mega-Mebiko JV LLC is ineligible to participate in World Bank-financed projects during the 30-month debarment.

The $100 million World Bank-funded project was designed to improve the availability, quality, and sustainability of public water supply services in the Syrdarya region of Uzbekistan, the World Bank said.

Mega-Mebiko misrepresented financial information, experience claims, and falsely stated that it had no conflicts of interest to win a project-financed contract, which are fraudulent practices under the World Bank Procurement Guidelines.

As a condition of the settlement, Mega-Mebiko acknowledged responsibility and took voluntary remedial actions. The company committed to developing an integrity compliance program and cooperate with the World Bank Group Integrity Vice Presidency.

Wednesday’s debarment qualifies for cross-debarment by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the African Development Bank.

A list of all World Bank debarred entities and individuals is here.

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