The World Bank Group today announced the debarment for two years of Sediver SAS, a Paris-based manufacturing company for power transmission components, in connection to sanctionable misconduct under the Southern Africa Power Market Project in the Democratic Republic of the Congo.

The debarment precludes Sediver SAS from participating in World Bank-financed projects as part of a Negotiated Resolution Agreement (NRA) with the World Bank. In addition, Sediver SAS’ parent company, Sediver SpA, will be conditionally non-debarred for a period of 18 months, which means that Sediver SpA remains eligible to participate in World Bank-financed projects as long as it complies with its obligations under the NRA, which was signed between the World Bank and Seves Group S.à.r.l (Seves), the sanctioned entities’ holding company.

The sanctions follow a World Bank investigation that found evidence of a corrupt practice whereby Sediver SAS made improper payments to an employee of a consulting company to influence a tender process. "The periods of sanction have been reduced, reflecting, among other things, Seves’ ongoing cooperation with World Bank investigators, acceptance of responsibility, and voluntary corrective and remedial actions," the World Bank stated.

Under the NRA, Sediver SAS and Sediver SpA have agreed to further develop and implement, together with Seves, the Seves group-wide integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. Seves has further agreed to continue to cooperate with the World Bank Group Integrity Vice Presidency and pay a financial remedy of 6.8 million euros to the DRC.

The debarment of Sediver SAS qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed in April 2010.

In accordance with World Bank Sanctions Procedures, Sediver SAS will be released from sanction at the end of the period of debarment with conditional release, if the Integrity Compliance Office determines that the conditions for release have been met at that time. But if the conditions are not met, the debarment will be continued until the conditions have been met. 

Similarly, Sediver SpA will be released from sanction at the end of the conditional non-debarment period if the Integrity Compliance Office determines that the conditions for release have been met at that time. If the conditions are not met, the conditional non-debarment will convert to a sanction of debarment with conditional release, and Sediver SpA then will become ineligible to participate in World Bank-financed projects until the conditions have been met.

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