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World Bank debars engineering consulting firm for failing to disclose conflict of interest

The World Bank Wednesday announced the 18-month debarment of a Honduras-based engineering consulting firm for failing to disclose a conflict of interest in bid documents for a project in Honduras.

Consultores en Ingeniería S.A. de C.V. (CINSA) is ineligible to participate in projects and operations financed by institutions of the World Bank during the debarment.

The project — the Pilot Program for Climate Resilience Phase 1 Grant Project — was designed to strengthen the institutional capacity of the Honduran Government for integrating climate resilience in development planning.

CINSA “misled procurement officials to obtain a contract under the project by failing to disclose a conflict of interest, despite an obligation to do so under the tender requirements and World Bank procurement regulations, and recklessly misrepresented that it did not have a conflict of interest in its bid documents for the contract,” the World Bank said.

CINSA’s action constitutes a fraudulent practice under the World Bank’s 2016 Anti-Corruption Guidelines.

As a condition for release under the terms of the settlement agreement, the company committed to developing and implementing a Code of Conduct that reflects the relevant principles set out in the World Bank’s Integrity Compliance Guidelines, as well as a corporate ethics training program.

The company also committed to continue to fully cooperate with the World Bank’s Integrity Vice Presidency.

The World Bank said the settlement agreement “provides for a reduced period of debarment in light of the company’s cooperation and voluntary remedial actions.”

The 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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