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World Bank debars Korean chaebol’s IT unit

The World Bank debarred a Korean IT company Monday for three years for an obstructive practice connected to a project in Vietnam.

Seoul-based Lotte Data Communications Company Limited (LDCC) and its subsidiaries are ineligible to participate in projects and operations financed by the World Bank Group during the 36-month debarment.

LDCC is part of the Lotte Corporation. Lotte is the fifth-largest chaebol in South Korea.

The $272 million World Bank-funded project was designed to expand access to improved drainage, wastewater collection and treatment services, the arterial road network, and public transport for residents in selected areas of Da Nang City.

The company acknowledged responsibility for the underlying sanctionable practices and agreed to meet specified corporate compliance conditions as a condition for release from debarment, the World Bank said.

According to the World Bank, the settlement agreement provides a reduced period of debarment for the company’s cooperation and acknowledgment of the misconduct.

LDCC also agreed to develop an integrity compliance program that reflects the relevant principles set out in the World Bank Group Integrity Compliance Guidelines,  and continue to fully cooperate with the World Bank Group Integrity Vice Presidency.

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

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