World Bank bars L&T for six months over forgery
Moneylife Digital Team 09 March 2013

The debarment pertains to a bid submitted by L&T through regional business head of its medical equipment and systems unit to a World Bank-financed project in Tamil Nadu in 2008

 
The World Bank (WB) has barred Indian conglomerate Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that a senior executive of the Indian conglomerate has indulged in fraud.
 
The debarment will continue till 6th September, making L&T ineligible for being awarded contracts for any World Bank-funded projects, from receiving any loan proceeds made by the WB or participating in any of the project financed by it.
 
The matter pertains to a bid submitted by L&T through regional business head of its medical equipment and systems unit to a World Bank-financed project in Tamil Nadu in 2008.
 
L&T submitted a bid on 3 September 2008 through the regional business head, to supply 130 ultrasound scanners under the TN Health Systems project. Upon evaluation, L&T’s bid was found to be the lowest-priced, but a complaint was later received that some certificates submitted by the company might have been forged.
 
The bid contained 115 performance certificates purportedly issued by medical facilities stating that the ultrasound scanners supplied by L&T were working well.
 
The official said that some medical facilities may have mistakenly denied issuing the certificates. In December 2008, the World Bank has cancelled the tender and awarded the contract to another company. 
 
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