On June 1, 2015, the World Bank announced a settlement with two Spanish companies: Iberdrola Ingeniería y Construcción, S.A.U. (Iberinco) and its parent company, Iberdrola, S.A (Iberdrola). The settlement relates to misconduct by Iberinco in connection with two power projects in Albania between 2004 and 2005. Specifically, the misconduct involved failure to disclose certain agency relationships in two separate tender offers in violation of the World Bank Procurement Guidelines. The World Bank debarred Iberinco for 12 months, to be followed by a six-month, conditional nondebarment. In addition, Iberinco must pay $350,000 in restitution to the Albanian government. The parent company, Iberdrola, also received a Letter of Reprimand for failure to supervise its subsidiary.
In its announcement, the World Bank noted the level of cooperation it received from the company. As part of the announcement, World Bank Integrity Vice President Leonard Frank McCarthy stated, “Steps toward stronger compliance and transparency standards while acknowledging misconduct are always welcomed by the World Bank Group. This case offers a clear example of how a company shifted course and sought corrective action in light of investigative evidence. Our objective is to work with more companies to achieve that goal.”
Under the terms of the settlement, Iberinco must enhance its compliance program so that it is consistent with the World Bank Group Integrity Compliance Guidelines.