The World Bank Group has announced a 4.5-year debarment of L.S.D. Construction & Supplies, a construction company based in the Philippines. This action is linked to collusive, fraudulent, and corrupt practices associated with the Philippine Rural Development Project.
The project aims to enhance rural income and boost farm and fishery productivity in certain areas of the Philippines. According to case details, between 2017 and 2018, L.S.D. engaged in undisclosed arrangements with other entities for bidding on two World Bank-financed contracts using its credentials for a fee. The company subcontracted work under these contracts to entities lacking the necessary financial or technical qualifications. Additionally, L.S.D. made payments to improperly secure one contract and expedite invoice processing during its implementation. These actions violate the World Bank’s Anti-Corruption Guidelines.
As a result of this debarment, L.S.D., along with any controlled firms or individuals, cannot participate in projects financed by World Bank Group institutions. The debarment stems from a settlement agreement where L.S.D. acknowledges responsibility for these practices and agrees to fulfill specific integrity compliance conditions for release from debarment.
The settlement includes a reduced debarment period due to L.S.D.’s cooperation and voluntary remedial actions. Under the settlement terms, the company must develop integrity compliance measures aligning with principles from the World Bank Group Integrity Compliance Guidelines and continue cooperating fully with the World Bank Group Integrity Vice Presidency.
L.S.D.'s debarment is eligible for cross-debarment by other multilateral development banks under an agreement signed on April 9, 2010.