Republic of Peru

Regional Transport Infrastructure Decentralization 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.




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Background

The Regional Transport Infrastructure Decentralization Project (the Project) in Peru aimed to
improve the prioritization, efficiency and effectiveness of regional transport interventions and to
contribute to regional development and poverty alleviation in Peru. The Project was financed by
the International Bank for Reconstruction and Development (IBRD).1 It became effective in April
2006 and closed in June 2014.

In 2011, the Regional Government of Amazonas (GRA) issued bidding documents for a contract
financed under the Project (the Contract). Company A submitted a bid for the Contract. Evidence
indicates that a Company A employee (Company A Employee) prepared and submitted Company
A’s bid. Evidence further indicates that Company A’s then-General Manager (Company A
Manager) signed Company A’s bid prepared by Company A Employee. The Bid Evaluation
Report subsequently recommended that Company A be awarded the Contract.

Allegations

Following the Bid Evaluation Report, the GRA received a complaint against Company A and
sought to corroborate certain information contained in Company A’s bid. The GRA concluded that
Company A’s bid contained misrepresentations. Consequently, the procurement for the Contract
was cancelled and the GRA referred this matter to the World Bank Group Integrity Vice
Presidency (INT).

Methodology

INT’s investigation consisted of, among other things, a review of Project documents and relevant
information provided to INT by the GRA, as well as statements obtained from Company A.

Findings

Evidence indicates that Company A submitted forged documents regarding its prior
experience in its bid for the Contract.

The bidding documents for the Contract required bidders to have experience in the construction of
at least two works of similar nature and complexity with the works described in the bidding
documents.

In its bid for the Contract, Company A claimed that it had participated in a joint venture (the JV)
for a road improvement contract in a certain municipality (the Municipality), and that the JV had
completed over 82 percent of that contract. Company A also included a letter and an invoice that
the JV had purportedly submitted to the Municipality (the Documents) and one letter purportedly
issued by the Municipality to the JV (the Letter).

However, evidence indicates that the Municipality neither issued the Letter nor received the
Documents and that the JV had breached the contract when less than nine percent of the project
had been completed.

1
  The IBRD is one of the five institutions comprising the World Bank Group. The International Development
Association (IDA) and the IBRD constitute the World Bank. The IBRD and the World Bank are used interchangeably
throughout this Report.

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INT issued a letter to Company A requesting Company A’s response to INT’s findings. In its
response to INT’s findings, Company A admitted that its bid contained misrepresentations and
forged documents.

Follow Up Action by the World Bank

The World Bank imposed a sanction of debarment with conditional release on Company A and
Company A Employee, which extends to any legal entity that Company A or Company A
Employee directly or indirectly controls.




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