World Bank black­lists US firm for cor­rup­tion

The Pak Banker - - Company& -

WASHINGTON: The World Bank said Fri­day it has barred busi­ness with a US com­pany for 12 years, al­leg­ing fraud and cor­rup­tion in devel­op­ment projects.

The anti-poverty lender said it had banned Kwaplah In­ter­na­tional Trad­ing Com­pany, based in Ore­gon, and its Amer­i­can-Liberian owner, Sherlock Mahn, to­gether with any or­ga­ni­za­tion they di­rectly or in­di­rectly con­trol.

They were de­barred "for en­gag­ing in cor­rupt and fraud­u­lent prac­tices in Bank­fi­nanced projects im­ple­mented in the Demo­cratic Re­pub­lic of Congo, Tan­za­nia, Ethiopia, Ukraine, Ghana, Gam­bia and Liberia," the bank said in a state­ment. "This is the sec­ond­longest de­bar­ment since the Bank be­gan sanc­tion­ing firms in 1999," it added.

The Washington-based World Bank also an­nounced that, for the first time, it had sanc­tioned for cor­rup­tion an­other com­pany barred by an­other mul­ti­lat­eral devel­op­ment lender --12 firms black­listed by the Asian Devel­op­ment Bank.

The ac­tion was taken un­der an April mu­tual-en­force­ment pact it en­tered into with the African Devel­op­ment Bank Group, Asian Devel­op­ment Bank, the Euro­pean Bank for Re­con­struc­tion and Devel­op­ment and the In­terAmer­i­can Devel­op­ment Bank Group.

Un­der the agree­ment, en­ti­ties de­barred by one mul­ti­lat­eral devel­op­ment bank may be sanc­tioned for the same mis­con­duct by other par­tic­i­pat­ing devel­op­ment banks.

"This en­force­ment ac­tion is send­ing a very pow­er­ful sig­nal of how the global an­ticor­rup­tion land­scape is fast for­ward­ing. This progress can­not be re­versed," Leonard McCarthy, World Bank vice pres­i­dent for in­tegrity, said in the state­ment. -PB News

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