The World Bank Group announced today the 65-month debarment of Indonesia-based consulting company PT. LPPSLH Konsultan in connection with fraudulent, corrupt, and obstructive practices related to the Investing in Nutrition and Early Years Project in Indonesia.
The project, anchored in the government's national strategy to accelerate stunting reduction efforts, aimed to increase access and use of nutrition interventions by pregnant mothers and children aged 0-to-24 months in priority districts. According to case details, LPPSLH overbilled the project, improperly hired a project official’s family member, and withheld documents material to the World Bank’s investigation. These actions were classified as fraudulent, corrupt, and obstructive under the World Bank’s Anti-Corruption Framework.
As a result of this debarment, LPPSLH is now ineligible to participate in projects and operations financed by institutions of the World Bank Group. This decision is part of a settlement agreement wherein the company acknowledges responsibility for its actions and agrees to meet specific compliance conditions for release from debarment.
The settlement agreement allows for a reduced period of debarment due to the company's voluntary remedial actions. To be released from sanctions under this agreement's terms, LPPSLH commits to developing and implementing integrity compliance measures aligned with principles outlined in the World Bank Group Integrity Compliance Guidelines. The company also pledges continued cooperation with the World Bank Group Integrity Vice Presidency.
Furthermore, LPPSLH's debarment qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010.