The World Bank announced January 14 the debarment of seven firms and one individual for engaging in collusive practices on major Bank-financed roads projects in the Philippines. The World Bank’s Integrity Vice Presidency (INT) uncovered evidence of a major cartel involving local and international firms bidding on contracts under phase one of the Philippines National Roads Improvement and Management Program, known as NRIMP 1. World Bank stopped an estimated $33 million in Bank funds from being awarded to the firms. The World Bank’s Sanctions Board concluded that the entities had participated in a collusive bid-rigging scheme.
The contractors debarred include China Road and Bridge Corp. (eight years), China Geo-Engineering Corp. (five years), and China State Construction Engineering Corp. (six years), all based in Beijing, Fuzhou-based China Wu Yi Co. Ltd. (six years), along with Philippines-based contractors Cavite Ideal International Construction and Development Corp. of Pasay City (four years), CM Pancho Construction, Inc. of Quezon City (four years), and Manila-based E. C. de Luna Construction Corp. and its owner Eduardo C. de Luna (permanent). The debarments can be lessened if the firms put in place compliance programs. However, de Luna and his firm have been permanently debarred. Another firm, Dongsung Construction Co. Ltd., Gyeongnam, Korea, was separately debarred in August 2008 for four years for fraudulent and corrupt practices in relation to the NRIMP 1 case.