This archive report was first published on 12 July 2019.
On July 12, 2019, the World Bank announced sanctions against two East Africa-based construction companies, SAI Consulting Engineering Ltd and Universal for General Construction and Trading Company, for engaging in corrupt practices.
SAI Consulting Engineering Ltd, an Indian firm, was accused of bribing Tanzanian officials to speed up invoice payments while working on the East Africa Trade and Transport Facilitation Project. The company constructed and managed several border posts in Tanzania and was also involved in similar corrupt practices in Mozambique and Ghana.
SAI Consulting Engineering Ltd's parent firm, SYSTRA, a French engineering and consulting group, voluntarily revealed the company's corrupt actions after acquiring 65% of SAI's shares in 2014. As a result, SAI was required to meet specific corporate compliance agreements outlined in a settlement agreement before taking on World Bank projects. Failure to meet these demands would result in disqualification from bank-funded programs.
SAI received a lenient punishment due to its parent company's willingness to disclose the ill actions to the World Bank. The company was allowed to continue working on World Bank projects after meeting the demands outlined in the settlement agreement.
Universal for General Construction and Trading Company, a South Sudanese firm, was disqualified from undertaking World Bank projects for 15 months due to engaging in corruption. The company used an undisclosed agent to make a false certificate for a bid on a school construction project in Uganda, which massively inflated the value of the previous contract undertaken by the business.
The South Sudanese firm agreed to fully cooperate with the World Bank Integrity team. The sanction on Universal Company also applies to other Multilateral Development Banks, such as the European Investment Bank and the African Development Bank, due to a law signed in April 2010 referred to as 'Agreement for Mutual Enforcement of Debarment Decisions'.
