Republic of Uganda Electricity 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 Electricity Sector Development Project (the Project) in the Republic of Uganda aims to increase electricity supply in the southwest region of Uganda. The Project is financed by an International Development Association (IDA)1 credit. The Project’s implementing agency issued a tender for a contract under the Project (the Contract). As part of their qualification requirements, the Contract bidding documents required bidders to demonstrate prior experience in similar projects. Company A submitted a bid for the Contract. To satisfy the prior experience requirement, Company A provided completion certificates and contract documentation, representing that it previously had completed Projects 1 and 2. Subsequently, Company A was awarded the Contract. Allegations The World Bank Group Integrity Vice Presidency (INT) received an allegation that Company A had misrepresented the incorporation date on its business license, and its prior experience, in its bid for the Contract. Methodology INT’s investigation consisted of, among other steps, a review of official company registration records for Company A and Company A’s website, as well as statements obtained from Company A and the prime contractor for Project 2. Findings Evidence indicates that Company A misrepresented its prior experience in its bid for the Contract. Although Company A claimed to have executed Projects 1 and 2 in its bid for the Contract, evidence indicates that Company A probably did not implement either of these contracts, as both of these contracts were signed before Company A came into existence. Specifically, in its bid, Company A submitted a purported copy of its business license, which stated that it was established on a certain date. However, the relevant government agency informed INT that Company A was incorporated on a different date, which is later than the starting date of Projects 1 and 2. INT also confirmed through another government agency that Company A was only licensed to conduct certain types of activities. However, evidence indicates Projects 1 and 2 were not within the category of works which Company A was legally licensed to conduct. INT further attempted to verify the authenticity of the prior experience documents submitted by Company A with their purported issuers. The Project 1 issuing body was non-responsive to INT’s 1 IDA is one of the five institutions comprising the World Bank Group. The International Bank for Reconstruction and Development (IBRD) and IDA constitute the World Bank. IDA and the World Bank are used interchangeably throughout this Report. 3 request for information. The purported issuer of Company A’s Project 2 documents informed INT that its relationship with Company A was limited to trading activities. The purported issuer added that although it had purchased equipment from Company A, the amount stated in the purported contract documentation submitted in Company A’s bid was exaggerated and incorrect. INT issued a letter to Company A, requesting its response to INT’s findings. In response, Company A admitted that it had submitted false prior experience information to win the Contract. Follow-Up Action by the World Bank The World Bank imposed a sanction of debarment with conditional release on Company. This ineligibility extends to any legal entity that Company A directly or indirectly controls. 4