World Bank debars US firm for fraudulent practices

Sunday, January 13, 2013
[PHOTO: Shiny Things/CC BY 2.0] 
Washington: The World Bank Group has announced the debarment of ARINC Incorporated, a US-registered engineering and systems integration company, for a period 33 months following the company’s acknowledgment of a violation of the Bank’s Procurement Guidelines in the Bank-financed Airports Development project in Egypt.

The 33-month debarment is part of a Negotiated Resolution Agreement between ARINC and the World Bank Group following an investigation by the World Bank Integrity Vice Presidency and the company’s readiness to cooperate during the investigation.

“This case is an example of why integrity due diligence matters for the World Bank as well as for companies that are engaged in development projects,” said Leonard McCarthy, World Bank Integrity Vice President.  

“We pursue our efforts to promote a culture of zero tolerance and effective compliance in collaboration with companies and governments as part of the Bank’s goal to ending poverty,” he added.

Under the Agreement, ARINC commits to cooperate with the World Bank’s Integrity Vice Presidency and continue to improve its corporate compliance program.

This debarment qualifies for cross-debarment by other Multilateral Development Banks (MDBs) under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.

The World Bank Integrity Vice Presidency (INT) is responsible for preventing, deterring and investigating allegations of fraud, collusion and corruption in World Bank projects, capitalizing on the experience of a multilingual and highly specialized team of investigators and forensic accountants.
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