Fraud in group-financed projects: WB debars two consultancy firms, Pakistani national

ISLAMABAD: The World Bank has announced the debarment of the Pakistan-based consultancy companies Solutions for Development Support (Pvt) Ltd and Community Resilience Initiative, as well as Malik Nasir Hussain Tanoli, a Pakistani national, in connection with fraudulent practices as part of the Sindh Resilience Project in Pakistan.

The bank on its website stated that the debarment makes the companies, Hussain, and any of their controlled affiliates, ineligible to participate in World Bank Group-financed projects and operations until at least October 20, 2027.

It is part of a settlement agreement under which the companies and Hussain acknowledge responsibility for the underlying sanctionable practices and agree to meet specified integrity compliance conditions as a condition for release from debarment.

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The Sindh Resilience Project aims to mitigate flood and drought risks in selected areas of the province and strengthen its capacity to manage natural disasters and public health emergencies.

According to the facts of the case, Solutions for Development Support (Pvt) Ltd, Community Resilience Initiative, and Hussain failed to disclose their close affiliation in tenders financed under the project, while Hussain was acting as the procurement and contract management specialist for the Provincial Disaster Management Authority, Sindh, which implemented the project.

These failures constitute fraudulent practices under the World Bank’s Consultant Guidelines. The settlement agreement provides for a reduced period of debarment in light of the companies’ and Hussain’s cooperation and acceptance of responsibility. As a condition for release from sanction, Solutions for Development Support (Pvt) Ltd, Community Resilience Initiative, and any affiliate that Hussain or the companies currently control or comes to control directly or indirectly, during the period of World Bank sanction, will be required to develop and implement integrity compliance measures consistent with the principles set out in the World Bank’s Integrity Compliance Guidelines.

In addition, Hussain commits to undertake corporate ethics training. Hussain and the companies also commit to continue to fully cooperate with the World Bank Integrity Vice Presidency. The debarments of Solutions for Development Support (Pvt) Ltd, Community Resilience Initiative, and Hussain qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.

Copyright Business Recorder, 2024