World Bank bars Famy Care, Olive Healthcare from receiving its contracts
New Delhi: Two India-based pharmaceutical companies have been barred from receiving World Bank contracts after an investigation revealed that they had engaged in “fraud” and “misconduct”, the multilateral lender said.
Mumbai-based contraceptive drugmaker Famy Care Ltd and Olive Healthcare, a pharmaceutical company that manufacturers dietary supplements in soft gelatin dosage forms, were banned from participating in World Bank-financed projects for “violating procurement guidelines”
The announcement was made by the World Bank’s Sanctions Board following investigations by integrity vice presidency (INT), which is responsible for investigating corruption in World Bank-financed projects.
Famy Care and Olive Healthcare did not respond to emails sent by Mint seeking comments.
Mumbai-based Olive Health Care was disqualified until January 2028 from participation in World Bank-financed projects. INT claimed that the company “knowingly engaged in fraudulent practices” by making misrepresentations in the bid and tender evaluation process.
INT said the company made false statements in its bid on the agent’s commission, submitted falsified documents, and offered falsified copies of invoices during the bid evaluation process. Its report also alleged that the company engaged in a “corrupt practice” by offering and paying a portion of the contract’s value to the agent with the intent that some of that money would be used to influence “public officials in the award of the contract”.
After a minimum period of ineligibility of 10 years and six months, the sanctions on the firm may be lifted if it has implemented an effective “integrity compliance program” which is satisfactory to the World Bank.
Famy Care has been barred from 23 May 2017 to 22 November 2018 for not complying with procurement guidelines.
“Famy Care may be released from ineligibility only if it has demonstrated to the World Bank Group’s Integrity Compliance Officer that it has complied by taking appropriate remedial measures to address the sanctionable practice for which it has been sanctioned and by putting in place an effective integrity compliance program acceptable to the Bank and has implemented this program in a manner satisfactory to the Bank,” said the order.
Latest News »
- D-Mart shares up 230% from issue price, market cap swells to Rs61,731.32 crore
- Fiat Chrysler planning spin-offs of Maserati, Alfa Romeo brands
- Vishal Wanchoo appointed CEO of GE South Asia
- Kerala High Court upholds discharge of CM Pinarayi Vijayan in SNC-Lavlin case
- Tata Sons appoints GE’s Banmali Agrawala to head infra, aerospace businesses