World Bank blacklists Serbian firm

The suspension comes at a time the World Bank is reviewing all its projects in Uganda following the discovery of massive corruption in the Office of the Prime Minister.

The World Bank has suspended Energo Projekt, a Serbian civil engineering and construction company, from undertaking any projects funded by the bank for the next two-and-half years, citing fraudulent practice.
This follows investigations by Mr Leonard McCarthy, the World Bank vice-president in charge of integrity, implicating Energo Projekt in alleged fraud.

According to information obtained by URN, a news agency, from the World Bank communication office in Kampala, Energo Projekt is accused of breaching clause 1.15 (a) (ii) of the World Bank procurement guidelines in relation to unnamed road projects in Uganda.

Guidelines
The procurement guidelines define fraudulent practices as misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Borrower, and includes collusive practices among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the Borrower of the benefits of free and open competition.

In a January 3 statement, Mr McCarthy said suspension of the firm is another example of why fighting corruption matters for the bank and companies engaged in development projects.

Mr Dan Alinange, the spokesperson of Uganda National Roads Authority, says the firm misrepresented information in the bid for Kawempe - Kafu road, but declined to divulge details because of the confidentiality clause in the agreement signed between the Bank and Energo Projekt.

Firm’s work
Energo Projekt is involved in the construction of 106 kilometer Kawempe – Kafu road stretch which connects to the city at the tune of $7.3 million.
The suspension comes at a time the World Bank is reviewing all its projects in Uganda following the discovery of massive corruption in the Office of the Prime Minister.
Efforts by URN to get a comment from the Energo Projekt management were futile as their offices on Plot 11 George Street were closed.

Earlier last year, the World Bank also suspended Oxford University Press Limited East Africa after they admitted misconduct in handling of education projects.