World Bank Debars Lao National for Fraudulent Practices in RRPM Project

April 10, 2024

The World Bank Group announced the debarment of Mr. Bounlert Chanthasounthone, a Lao national, for 43 months due to fraudulent practices during the Reducing Rural Poverty and Malnutrition Project (RRPM Project) in the Lao People’s Democratic Republic (Laos).

Findings and Sanctions

Mr. Chanthasounthone acknowledged responsibility and accepted the sanction without contesting the findings. As a result, he and any firms under his control will be barred from participating in projects financed by the institutions of the World Bank Group.

The RRPM Project, a World Bank initiative to improve nutrition-sensitive social assistance programs in Laos, was the subject of the investigation. The following fraudulent practices were identified:

• Mr. Chanthasounthone submitted a false consulting contract with inflated salary to the World Bank to secure his own contract under the project.
• He received simultaneous payments from the RRPM Project and another Asian Development Bank-financed project.

Cooperative Agreement and Conditions for Release

Facing cooperation from Mr. Chanthasounthone, the World Bank opted for a reduced debarment period. To regain eligibility, he must:

1. Undergo corporate ethics training
2. Ensure firms under his control complete similar training
3. Continue collaborating with the World Bank’s Integrity Vice Presidency

Effective Debarment and Cross-Debarment

Effective April 10, 2024, the debarment can also be enforced by other multilateral development banks (MDBs) due to the Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010.