United Republic of Tanzania

Zanzibar Basic Education Improvement Project

                         Redacted Report


                                Official Use Only

                                   February 2018
                                                                                   Official Use Only


                                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 Zanzibar Basic Education Improvement Project (the Project) in Tanzania, which was financed
by the International Development Association (IDA),1 aimed to improve completion rates on lower
secondary education in Zanzibar.

In 2009, Company A submitted a bid for a Project contract (the Contract).

Allegations

The World Bank Group Integrity Vice Presidency (INT) received an allegation that Company A
made improper payments to a government employee to be awarded the Contract.

Methodology

INT’s investigation consisted of, among other steps, a review of Project documents, as well as
documents and statements obtained from Company A’s parent company (the Parent Company).

Findings

        Evidence indicates that Company A made payments of over US$ 20,000 to a
        government employee to be awarded the Contract.

In response to an INT inquiry, the Parent Company told INT that Company A made payments of
over US$ 20,000 to a government employee, who also acted as Company A’s agent. Evidence
indicates that the payments were made in an effort to influence government officials to ensure that
Company A was awarded the Contract.

Follow Up Action by the World Bank

The World Bank imposed a sanction of debarment with conditional release on Company A. The
period of ineligibility extends to any legal entity that is directly or indirectly controlled by
Company A.




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.

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