The World Bank Group has announced the debarment of HIDRALRICA Distribução de Tubos e Conexões Eireli and its director, Ricardo Checa Hernandez, for 18 months. The hardware and tools retailer was involved in a collusive practice with another bidder under the SABESP project aimed at improving water service access and security in São Paulo's metropolitan region.
The project's goal is to enhance water services for vulnerable populations and reduce water losses and pollution. According to the case details, HIDRALRICA and Mr. Hernandez coordinated pricing and bid submissions for polyethylene connectors with another bidder, violating the World Bank’s Anti-Corruption Framework.
As a result of these actions, both HIDRALRICA and Mr. Hernandez are barred from participating in projects financed by the World Bank Group institutions. They have acknowledged their involvement in the sanctionable practice and agreed to comply with specific corporate compliance conditions for their release from debarment.
These conditions include developing a corporate ethics training program based on the World Bank Group Integrity Compliance Guidelines. Mr. Hernandez has also committed to completing individual corporate ethics training. The settlement includes a reduced debarment period due to their cooperation, voluntary remedial actions, and ongoing commitment to cooperate with the World Bank Group Integrity Vice Presidency.
Additionally, this debarment qualifies for cross-debarment by other multilateral development banks under an agreement signed on April 9, 2010.