World Bank bans Larsen & Toubro
11 March 2013
The World Bank has banned India's largest contractor, Larsen & Toubro (L&T), from winning contracts it funds for six months following allegations of misconduct.
An investigation by the World Bank’s anti-corruption division, the Integrity Vice Presidency, uncovered evidence of fraudulent bidding on a Bank-financed health care project in India.
“The company submitted 13 forged performance certificates as part of its bid for a contract to supply 130 ultrasound scanners,” the World Bank said.
L&T said the sanctions took effect on 7 March and were imposed “due to the misconduct of an ex-employee of the medical equipment business of L&T, whilst bidding for a tender in the year 2008”.
The contractor said the ex-employee’s conduct was contrary to its code of conduct and did not reflect the values of L&T. It added that it had tightened its controls across the group as a result.
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