The World Bank Group has imposed a 24-month sanction on Kontrolmatik Teknoloji Enerji Ve Mühendislik A.Ş., an engineering company based in Türkiye, due to fraudulent and obstructive practices related to the Emergency Operation for Development Project in Iraq.
According to the World Bank Group, the project is designed to help Iraq rebuild damaged infrastructure and restore public services in certain municipal areas. In this case, Kontrolmatik submitted fabricated documents about its past performance to meet bidding requirements for a contract funded by the project. The company also impersonated another party to verify these documents. Additionally, a Kontrolmatik employee made false statements during the World Bank’s investigation, actions that were deemed fraudulent and obstructive under the organization’s Anti-Corruption Framework.
The 24-month sanction period will occur in two phases. For the first 12 months, Kontrolmatik and any firms or individuals it controls will be debarred with conditional release, making them ineligible for participation in projects financed by institutions of the World Bank Group. If specified conditions are met after one year, the next 12 months will involve conditional non-debarment; during this phase, Kontrolmatik can participate in World Bank Group-financed projects if it complies with obligations outlined in a settlement agreement. If those conditions are not met, the debarment with conditional release will continue.
As part of a settlement agreement, Kontrolmatik admitted responsibility for these practices and agreed to fulfill corporate compliance requirements consistent with World Bank Group Integrity Compliance Guidelines. The company also pledged ongoing cooperation with the World Bank Group Integrity Vice Presidency.
“The settlement agreement reduces Kontrolmatik’s sanction due to the company’s significant cooperation with the World Bank Group, as well as its voluntary remedial actions,” according to the announcement.