World Bank bars Famy Care, Olive Healthcare from receiving its contracts
A World Bank investigation has found that pharma firms Famy Care and Olive Healthcare engaged in ‘fraud’ and ‘misconduct’
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.
- Change M&A norms to calculate spectrum dues: Trai
- Cracking India’s bankruptcy code
- RBI’s registry will help solve problem of credit shortage: iSpirt’s Sharad Sharma
- Fintech regulation at an inflection point: Shardul Amarchand’s Shilpa Mankar Ahluwalia
- Voice and AI biggest transformative tech, says EY’s Mahesh Makhija
Editor's Picks »
- Narendra Modi tears into opposition, wins trust vote
- Flipkart, Hotstar join hands for ad platform
- Hug-hug, wink-wink: Rahul Gandhi attacks govt over Rafale, unemployment, lynchings
- India, US to finally hold twice-postponed ‘2+2 dialogue’ on 6 September
- Collegium maintains stand on elevation of Joseph to SC, sends two more names to govt
- What ABB India’s performance in June quarter says about capex growth
- Bajaj Finance does well in Q1 even as competition hots up
- Kotak Mahindra Bank: The perils of being priced to perfection
- Higher cane price crushes hopes of sugar mills
- Market optimism before 2019 general election: History may not repeat itself