Nicaragua

Education Sector Strategy Support Project

                   Redacted Report




                                 March 2020
                                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,
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Background

The Education Sector Strategy Support Project (the “Project”) in the Republic of Nicaragua
(“Nicaragua”) was funded by two Trust Fund Grants administered by the International
Development Association (“IDA”). The Project became effective in May 2013, and closed in
November 2017.

The Project Development Objectives were to: (a) increase access to preschool education in selected
municipalities, and to improve preschool education learning conditions nationwide, and (b)
increase access to lower secondary education in selected municipalities and improve lower
secondary education quality and completion rates nationwide.

The Project Implementation Unit (“PIU”) published the Bidding Documents for a Project-financed
tender with multiple lots for construction works (the “Tender”). Company A submitted bids for
Lot A and Lot B.

Allegations

The PIU reported to the World Bank that it had found evidence indicating that Company A had
submitted a forged document in its Lot A and Lot B bids and that, based on this finding, had
disqualified Company A from the Tender. INT initiated an investigation.

Findings

       Evidence indicates that Company A misrepresented its past experience and submitted a
       falsified document in its Lot A and Lot B bids.

The Tender Bidding Documents required that, in the four years prior to the bid submission
deadline, bidders have completed at least three contracts similar to the tendered Lot. In its bids
for Lot A and Lot B, Company A claimed to have executed a previous construction contract (the
“Previous Contract”). In support of this claim, Company A submitted in both bids a certificate of
completion for the Previous Contract (the “Completion Certificate”) purportedly issued by the
Previous Contract employer.

However, evidence indicates that the Previous Contract was executed by another company, and
that the Completion Certificate had been falsified to misrepresent that Company A had been the
one to execute the Previous Contract. Further, in response to INT’s inquiries, Company A stated
that it had submitted false information in its Tender bids and falsified the Completion Certificate.

Corrective Actions

The World Bank imposed the sanction of debarment on Company A, extending to any entity
Company A directly or indirectly controls.




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