Cambodia Second Health Sector Support Project Redacted Report July 2019 Statement of Use and Limitations This Report was prepared by the World Bank Group (the “WBG”) Integrity Vice Presidency (“INT”). It provides the findings of an INT administrative inquiry (the “Investigation”) into allegations of corrupt, fraudulent, collusive, and/or coercive practices, as defined by the WBG for purposes of its own policies, rules and procedures (the “WBG’s Framework regarding Anti-corruption”), in relation to the WBG-supported activities. The purpose of the Investigation was to allow the WBG to determine if the WBG’s Framework regarding Anti-corruption has been violated. This Report is being shared to ensure that its recipients are aware of the results of the INT Investigation. However, in view of the specific and limited purpose of the Investigation underlying this Report, this Report should not be used as the sole basis for initiating any administrative, criminal, or civil proceedings. Moreover, this Report should not be cited or otherwise referred to in the course of any investigation, in any investigation reports, or in any administrative, civil, or criminal proceedings. This Report is provided without prejudice to the privileges and immunities conferred on the institutions comprising the WBG and their officers and employees by their respective constituent documents and any other applicable sources of law. The WBG reserves the right to invoke its privileges and immunities, including at any time during the course of an investigation or a subsequent judicial, administrative or other proceeding pursued in connection with this matter. The WBG’s privileges and immunities cannot be waived without the prior express written authorization of the WBG. 1 Background The Second Health Sector Support Project (the “Project”) was designed to support the implementation of the Kingdom of Cambodia’s 2008 Health Strategy Plan to improve health outcomes by strengthening institutional capacity and mechanisms. The Project was financed by an International Development Association (IDA) credit. The Project became effective on January 2009, and closed in June 2016. The Project was implemented by the Ministry of Health (“MOH”). In 2014, the MOH published the Bidding Documents for a Contract, in six Lots. Company A bid for all six Lots. Its bid was signed by its Assistant Director as Company A’s authorized representative. Company A was recommended for award of three of the six Lots. Allegations The World Bank Group Integrity Vice Presidency (“INT”) received information that Individual B was unaware that his/her name had been proposed by Company A in its bid. Methodology INT’s investigation consisted of, among other steps, a review of the Project documents, as well as documents and statements obtained from Company A and Individual B. Findings Evidence indicates that Company A misrepresented the availability of a key staff member, Individual B, when competing for Contract award. Bidders for the six Project Contract Lots were required to demonstrate that they would have the personnel for key positions. Bids were evaluated, in part, on the bidder’s capacity to mobilize key personnel with proper qualifications. In its bid for one of these three awarded Lots, Company A had proposed Individual B as Project Manager, providing his/her curriculum vitae (“CV”). The bid was signed by Company A’s Assistant Director as Company A’s authorized representative. Evidence indicates that, following MOH’s request for confirmation of the proposed Project Managers’ availability, Company A contacted Individual B and asked him/her to sign a Letter of Appointment confirming his/her availability for the Contract. Evidence indicates that Individual B refused to sign the Letter of Appointment, as s/he had no prior knowledge of the Contract and was unaware that s/he was proposed as the Project Manager for Company A. Evidence indicates that Company A then informed the MOH that Individual B was “no longer available” and sought MOH’s approval to replace him/her. Evidence further indicates that, in support of this request, Company A attempted to procure another letter from Individual B, stating that s/he was no longer available for the Contract. Evidence 3 indicates that, following further communications with the MOH, Company A admitted to the MOH that it had not informed Individual B when Company A submit his/her CV. Evidence indicates that: (i) Individual B did not know that Company A had proposed him/ her as the Project Manager ; (ii) Individaul B did not authorize Company A to submit his/her CV as part of its bid for the Contract; and (iii) Individual B did not know Company A’s Assistant Director. In addition to Individual B’s unavailability, the Ministry of Interior also informed MOH that it had terminated a Company A contract awarded under an unrelated project. As a result, MOH deemed Company A to be ineligible for the award of three Lots, and disqualified Company A from further consideration. INT sent a letter to Company A, requesting its response to INT’s findings. The Assistant Director submitted a reply on behalf of Company A, however the reply did not address INT’s findings. Follow Up Action by the World Bank The World Bank has imposed the administrative sanction of debarment with conditional release against Company A, extending to any legal entity Company A directly or indirectly controls. 4