World Bank Group Debars Newstech Trading and Investment Construction Joint Stock Company
WASHINGTON: The World Bank Group today announced the two-and-a-half-year debarment of Vietnam-based Newstech Trading and Investment Construction Joint Stock Company (“Newstech”) in connection with fraudulent practices under the Vinh Phuc Flood Risk and Water Management Project in Vietnam.
The debarment makes Newstech ineligible to participate in projects and operations financed by institutions of the World Bank Group. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.
The project is designed to strengthen flood risk management capacity and improve wastewater management in the central catchment of Vinh Phuc province in Vietnam. According to the facts of the case, in its bid on a contract financed by the project, Newstech misrepresented its prior experience and submitted falsified documents on the qualifications of key experts. These are fraudulent practices.
The settlement agreement provides for a reduced period of debarment in light of the company’s cooperation and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing and implementing an integrity compliance program that reflects the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
The debarment of Newstech qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.