09 March 2013

Pin It

L & T Banned by World Bank for Forgery, for fraudulent practices for six months What India Did

L & T Banned by World Bank for Forgery, for fraudulent practices for six months What India Did

World Bank has barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for 6 months, after finding that a senior executive of the Indian conglomerate has indulged in fraud.

The debarment will continue till September 6

Sanction order issued by the World Bank on March 7 said that
L&T's ineligibility would continue across the entire World Bank group and has been imposed on L&T "for fraudulent practices" as per the bank's Procurement Guidelines against Fraud and Corruption.

Ban means what will happen it will make L & T ineligible for

being awarded contracts for any World Bank- funded projects

from receiving any loan proceeds made by the Bank

participating in any Bank-financed project

any of the entities controlled directly or indirectly by L & T can't be nominated even subcontractor, consultant, manufacturer, supplier or even service provider to an otherwise eligible firm being awarded a World Bank-financed project

How the forgery Happen, how the Scam Happened?

January 2005 –
The World Bank Group had entered into a Development Credit Agreement with the Indian government to provide USD 110.83 million of International Development Association credit for the Tamil Nadu Health Systems Project.

Object of the Project - It was set up to improve the effectiveness of health systems in the state by increasing access to critical health services for poor, disadvantaged and tribal groups.

Year – July 2008 –
Tamil Nadu Medical Service Corporation issued bidding documents for a contract to supply 130 ultrasound scanners under the Project.

September 3, 2008-
L&T submitted a bid on September 3, 2008 through the said Regional Business Head.

L&T's bid was found to be the lowest-priced.

Later complaint was received that some of the certificates submitted with the bid might have been forged.

The bid contained a total 115 performance certificates purportedly issued by medical facilities stating that the ultrasound scanners supplied by L&T were working well.

After looking into the matter, the World Bank's Integrity vice Presidency (INT) alleged that L&T "engaged in fraudulent practices by submitting forged performance certificates with its bid".

December 2008 -
L&T was informed that the tender has been cancelled and the contract was awarded to another firm through a new bidding process.

I am not aware that anyone has filed a police case regarding this matter.
Media has not reported the name of officer, who was responsible for this,
Media has not reported what action L & T took on that officer who did this.

Reality is that in India majority companies do the same, and our laws are toothless nothing happens and corruption flourishes in India.

Reality views by sm-

Saturday, March 09, 2013

Tags – L & T


Arti March 09, 2013  

This must be a big setback for such a big company! You can make the you tube video you were asking for sm using pictures from my Japan posts :) Thanks :)

DWei March 09, 2013  

I wonder if they'll be let off with a slap on the wrist in a few weeks.

rudraprayaga March 10, 2013  

What a pity!Corruption sounds the death knell of our progress!.

Rahul Aggarwal March 10, 2013  

corruption should be declared as our birth right!