Wipro barred from World Bank

The World Bank said that it plans to publish the names of all companies it bars from receiving Bank contracts, and named three Indian firms.

It said it had barred IT company Satyam Computer Services for eight years and Wipro Technologies for four years for "improper benefits to bank staff".

"There are currently three companies that (have) been debarred along with their affiliates under the Bank group's corporate procurement programme," the Bank said in a statement.

It said it also barred India's Mefasoft Consultants for four years in December 2007 for "participating in a joint venture with Bank staff while conducting business with the Bank".

India's No. 3 software company, Wipro Ltd, said on Monday that the World Bank had determined in June 2007 the company would be ineligible for the bank's direct contracts up to 2011 citing a conflict of interest policy.

Wipro said its revenues from World Bank were insignificant and the decision would not affect its business and results.

It said the announcement was being made now under revised disclosure policies.

Earlier World Bank banned Satyam for eight years for alleged malpractices, including bribery. The World Bank debarment has been meted out for "improper benefits to bank staff" and "lack of documentation on invoices.”

World Bank information security chief Robert Van Pulley admitted to the ban during a meeting with the officials of Government Accountability Project (GAP), a whistleblower protection organisation in the US. The bank has handed over the case to the US Justice Department and the Treasury Department.

Satyam started providing IT services to the World Bank in 2003. Two years later, allegations of bribery surfaced. In 2007, an internal World Bank investigation found that former VP Mohamed Muhsin had secured contracts and purchase orders worth $100 million for the Indian firm in return for Satyam's stock options (ADRs) at preferential prices.

After which Muhsin was banned permanently from the bank. However, Satyam was allowed to work for the bank till 2008. There have also been allegations against Satyam of causing security breaches at the bank. World Bank's records, which contain sensitive financial information, have reportedly been illegally accessed over the last year.

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