13 January 2009 | Paul Snell
The World Bank has barred three major Indian vendors from bidding on contracts and taking part in its procurement processes. It has suspended IT services giants Wipro Technologies and Satyam Computer Services, as well as technology firm Megasoft consultants.
Satyam has been banned from tendering for eight years, after "providing improper benefits to bank staff and failing to maintain documentation to support fees charged for its subcontractors". The other two firms were given four-year bans - Wipro for "providing improper benefits to bank staff", and Megasoft for taking part in a joint venture with staff while conducting business with the World Bank.
The World Bank said it decided to make the names public to become more transparent. The organisation already publishes the names of firms and individuals banned from contracting for projects financed by the Bank. It also plans to continue the practice in the future.
Wipro, which was banned in July 2007, said it had offered shares in the firm to World Bank staff. Employees purchased $72,000 (£48,572) and all involved had signed a statement saying the purchase did not violate ethics or conflict of interest policies. The firm added its revenue from the World Bank was insignificant and the ban would not affect its future business.
Neither Megasoft, banned in December 2007, nor Satyam, barred in September 2008, responded to supplymanagement.com's request for a comment.