Pursuant to Sanctions Board Decision No. 140 issued in Sanctions Case No. 762, the Sanctions Board imposes sanctions of conditional non-debarment for a period of two (2) years on Nippon Koei Co., Ltd. and Nippon Koei Vietnam International Co., Ltd. (the ¡°Respondents¡±). In case of non-compliance with the conditions within the prescribed period of non-debarment, the Respondents shall be automatically placed under debarment with conditional release for a minimum period of two (2) years.
These sanctions are imposed on the Respondents for fraudulent practices as defined in Paragraph 1.23(a)(ii) of the World Bank¡¯s Guidelines: Selections and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers (January 2011) and the World Bank¡¯s Guidelines: Selections and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers (January 2011, revised July 2014).
Capsule Summary of Findings:
The Sanctions Board found the Respondents were found liable for engaging in fraudulent practices by failing to disclose a potential perceived conflict of interest and payments made to two consultant companies. In selecting the sanction of conditional non-debarment, the Sanctions Board considered all the specific facts and circumstances, as well as the relevant sanctioning factors. The Sanctions Board found that the Respondents¡¯ reckless commission of the sanctionable practices, particularly their lack of oversight, inadequacy of internal controls, and insufficient operationalization of their compliance program, could be best addressed by the conditions stipulated in the decision. Full discussion of the facts, allegations, and the Sanctions Board¡¯s analysis can be found in the published decision.