World Bank Bans Swiss Alstom Hydro France, Alstom Network Schweiz AG for Corrupt Practices

World

Washington (ABC Live): The World Bank Group on Wednesday has announced the debarment of Alstom Hydro France and Alstom Network Schweiz AG (Switzerland) - in addition to their affiliates - for a period of three years following Alstom’s acknowledgment of misconduct in relation to a Bank-financed hydropower project.

The debarment is part of a Negotiated Resolution Agreement between Alstom and the World Bank which also includes a restitution payment by the two companies totaling approximately $9.5 million.

The debarment can be reduced to 21 months - with enhanced oversight - if the companies comply with all conditions of the agreement.

“This case demonstrates a clear commitment from the World Bank to ensure development funds reach their intended beneficiaries while setting a high standard for global integrity where project resources may be at stake,” said Leonard McCarthy, World Bank Integrity Vice President.

 “Alstom’s settlement with the Bank is a wake-up call to global companies that are involved in development business that need to ensure their operations with the World Bank are clean. Alstom is a major player in the hydropower sector and their commitment under this agreement is a significant step in deterring the risks of fraud and corruption.”

In 2002, Alstom made an improper payment of €110,000, to an entity controlled by a former senior government official for consultancy services in relation to the World Bank-financed Zambia Power Rehabilitation Project. During the debarment period of Alstom Hydro France and Alstom Network Schweiz AG, Alstom SA and its other affiliates are conditionally non-debarred.

Under the Agreement, Alstom SA, Alstom Hydro France, Alstom Network Schweiz AG and their affiliates commit to cooperating with the World Bank’s Integrity Vice Presidency and continuing to improve their internal compliance program. The debarment of Alstom Hydro France and Alstom Network Schweiz qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.