WASHINGTON, October 18, 2023 - The World Bank today announced the 41-month debarment of Vietnam based HTC Construction and Advanced Technology Joint Stock Company (HTC), a construction firm, in connection with fraudulent and obstructive practices under the World Bank-financed Coastal Cities Environmental Sanitation Project; the Da Nang Priority Infrastructure Investment Project; the Medium Cities Development Project; and the Irrigated Agricultural Improvement Project, (collectively the "Projects"), in Vietnam.
The debarment makes HTC ineligible to participate in projects and operations financed by institutions of the World Bank. 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.
According to the facts of the case, at the time of bid submission, HTC misrepresented its financial statements and inflated the values of its past contracts in order to mislead procurement officials into awarding the company contracts under the Projects. Furthermore, during the investigation conducted by the World Bank's Integrity Vice-Presidency (INT), HTC consistently denied the applicability of the World Bank's inspection and audit rights and refused to provide INT with evidence, thereby materially impeding the investigation. HTC's conduct constitutes fraudulent and obstructive practices under the World Bank's 2010 and 2011 Procurement Guidelines.
The settlement agreement provides for a reduced period of debarment in light of the company's admission of wrongdoing and voluntary restraint from bidding on World Bank funded Projects. As a condition for release from sanction under the terms of the settlement agreement, HTC commits to implementing integrity compliance measures that reflect the principles set out in the World Bank's Integrity Compliance Guidelines. In addition, any affiliate that the company controls, directly or indirectly, will be required to similarly implement appropriate integrity compliance measures. The company also commits to continue to fully cooperate with INT.
The debarment of HTC qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.
