The World Bank today announced the two-year conditional non-debarment of India-based Egis India Consulting Engineers Private Limited (“Egis India”) in connection with corrupt and fraudulent practices as part of the Second Karnataka State Highway Improvement Project (“KSHIP II”) and the Uttar Pradesh Core Road Network Development Project (“UPCRNDP”) in India.
Egis India was sanctioned with conditional non-debarment, which means that it remains eligible to participate in World Bank-financed projects as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank-financed projects until the conditions for release set out in the settlement agreement are met. A conditional non-debarment does not qualify for cross-debarment by the multilateral development banks that are signatories to the Agreement for Mutual Enforcement of Debarment Decisions.
The KSHIP II was designed to accelerate the development of the core road network in the Indian state of Karnataka and improve the institutional effectiveness of road sector agencies. The objectives of the UPCRNDP include building capacity for results-focused road safety management in the state of Uttar Pradesh. According to the facts of the case, which Egis India does not contest, Egis India made illegitimate payments to influence the release of contractual payments while implementing contracts under these two projects and submitted inflated invoices for reimbursable expenses. Within the World Bank’s administrative Sanctions System, these actions are considered corrupt and fraudulent practices, respectively, as defined by World Bank Consultant Guidelines.
The settlement agreement provides for a reduced period of sanction in light of the company’s voluntary disclosures, cooperation, acceptance of responsibility, and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with 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.