World Bank issues year-long contract ban to Louis Berger Group for 'corrupt practices'

18 February 2015

The World Bank Group has debarred Louis Berger Group (LBG) from contracts for one year for engaging in “corrupt practices” under two bank-financed projects in Vietnam.

The US engineering and professional services group has been barred from working on World Bank-funded projects for 12 months, subject to compliance with certain conditions.

Under two World Bank-financed projects, the Third Rural Transport and Da Nang Priority Infrastructure Investment Projects, in Vietnam, the company made corrupt payments to government officials, the World Bank said.

A World Bank inquiry led LBG to conduct its own internal investigation, uncover the misconduct and disclose its findings.

Louis Berger said it accepted the sanction terms for a violation of standards of conduct related to international business activities conducted by former managers prior to late 2010.

“All of the managers associated with these improper business activities were quickly separated from the company following the early findings of its investigations,” the company said in a statement.

“The acceptance of the World Bank sanction is an important milestone in our reform efforts as we are one step closer to finally closing the chapter on the pre-2010 era of the company’s history,” said Nicholas Masucci, Louis Berger president and chief executive.

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