The World Bank in the month of March 2013 barred Larsen & Toubro (L&T)
from doing any business with it or the projects funded by it for a
period of six months, as it found that a senior executive of the
conglomerate indulging in fraud.
The debarment has made L&T
ineligible for being awarded of any contract of the World Bank Funded
projects and also from receiving any loan proceeds made by the Bank or
participating in any Bank-financed project. The debarment is supposed to
continue till 6 September 2013.
The World Bank in its sanction
order dated 7 March 2013 mentioned the fraudulent practices of L& T
as per the bank’s procurement guidelines against fraud and corruption.
Consequences of the Ban imposed on L&T
During
the debarment period, L&T as well as any of the entities controlled
directly or indirectly by it cannot be nominated even sub-contractor,
consultant, manufacturer, supplier or even service provider to an
otherwise eligible firm being awarded a World Bank-financed project.
Reason behind the Debarment
The
debarment aroused due to the discrepancy in a bid submitted by L&T
through the Regional Business Head of its Medical Equipment and Systems
unit to a bank-financed project in Tamil Nadu in September 2008.
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