The World Bank on Wednesday announced it has imposed a 30-month debarment on Canada-based MTZ Equipment, a distributor of agriculture equipment, for fraudulent practices connected to the On-Farm Water Management Project in the Islamic Republic of Afghanistan.
The debarment makes MTZ ineligible to bid on future World Bank Group-financed projects during the sanction period. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practice.
The project was designed to support Afghanistan’s government to improve agricultural productivity by enhancing the efficiency of water usage. According to the facts of the case, MTZ knowingly submitted a bid with a false bid guarantee. The company did not ultimately win the contract.
As a condition of the settlement agreement, the company commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
The debarment of MTZ qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed in April 2010.