Republic of Uganda Transport Sector Development Project Redacted Report March 2018 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 Transport Sector Development Project (the Project) in Uganda aimed to improve the connectivity and efficiency of the transport sector. The Project became effective in July 2010 and closed in January 2016. In 2013, the implementing agency (the Agency) for the Project issued an Invitation for Prequalification (the IFP) for a Project contract (the Contract). As part of the qualification criteria and requirements, the IFP required bidders to demonstrate participation in a number of past contracts within a certain period of time, each with a stipulated minimum value, which had been successfully and substantially completed and that were similar to the proposed works. Company A submitted a prequalification bid for the Contract, along with purported certificates of its prior experience. Allegations During its evaluation of Company A’s prequalification documents, the Agency observed that Company A had participated in other Agency tenders, and had provided incorrect information regarding its prior experience. Alerted by this finding, the Agency reviewed Company A’s prequalification documents for the Contract and discovered that Company A had provided incorrect information about its prior experience. The Agency reported this discovery to the World Bank, and the matter was referred to the World Bank Group Integrity Vice Presidency (INT). Methodology INT’s investigation consisted of a review of Project documents, as well as documents and statements obtained from Company A, the Agency, and the purported issuer of Company A’s certificates of prior experience. Findings Evidence indicates that Company A submitted certificates of prior experience containing incorrect information in its prequalification bid for the Contract. To satisfy the prior experience requirements of the IFP, Company A provided certificates representing that it had completed certain contracts. However, during INT’s investigation, the purported issuer of the certificates informed INT that those certificates contained incorrect information regarding the contract amount, dates, and scope of works. For one of the contracts, the purported issuer informed INT that the signatures contained in the certificate were not authentic. In response to INT’s inquiry regarding these findings, Company A admitted its misrepresentations. Follow Up Action by the World Bank The World Bank imposed a sanction of debarment with conditional release on Company A. This period of ineligibility extends to any legal entity that Company A directly or indirectly controls. 3