WB bans printing press over corruption
July 05, 2012 00:00:00
NAIROBI, July 4 (Xinhua): The World Bank (WB) said Tuesday that it has banned two wholly-based subsidiaries of Oxford University Press (OUP) for corruption practices in its educational projects in east Africa.
A statement from the bank issued in Nairobi said Oxford University Press East Africa Limited (OUPEA) and Oxford University Press Tanzania Limited (OUPT) will remain debarred for three years following OUP's admission of wrongdoing by twp of its subsidiaries in relation to two Bank-financed education projects in east Africa.
"This debarment is testimony to the Bank's continued commitment to protecting the integrity of its projects," World Bank Integrity Vice President Leonard McCarthy said in the statement.
McCarthy said the OUP's admission of misconduct and the thoroughness of its investigation is evidence of how companies can address issues of fraud and corruption and change their corporate practices to foster integrity in the development business.
"In this case, working with the Serious Fraud Office also demonstrates the scope of collective action in deterring corruption impacting the progress of development," he said.
The latest move is part of a Negotiated Resolution Agreement between OUP and the World Bank Group.
The bank's investigators from the Integrity Vice Presidency (INT) in May 2011 approached OUP about potential misconduct in Africa. Following this, OUP conducted an internal investigation into its operations and reported its findings to INT, it said.
The two companies made improper payments to government officials for two contracts to supply text books in relation to two World Bank-financed projects, the Bank said.
"As a result, OUPEA and OUPT will be debarred for three years and OUP will receive a conditional non-debarment. In addition, in order to remedy part of the harm done by the misconduct, OUP has agreed to make a payment of 500,000 US dollars to the World Bank as part of the Negotiated Resolution," the statement said.