EBRD blacklists German firm found guilty of fraud by World Bank
26 February 2007
The German company Lahmeyer, found guilty of bribery while involved in the World Bank's Lesotho Highlands Water Project, has been placed on a list of firms that are ineligible of working with the European Bank for Reconstruction and Development (EBRD) following the EBRD's examination of World Bank reports.
Lahmeyer was one of several European companies found guilty of corrupt practices around the infamous hydro electric and water transfer project in Lesotho and was subsequently banned from doing business with the World Bank following an investigation and court proceedings in 2003 and 2004. The German consultancy group is the first company to be "cross-debarred" by a multilateral development bank.
The company has worked with the EBRD in the past but has been suspended from conducting business with the bank until further notice. The EBRD sent a letter to Lahmeyer earlier this month stating that it would not accept bids from the organization until improvements were made to its anti-corruption safeguards.
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