Title: Lao National Debarred from World Bank-Funded Projects for Three Years over Alleged Fraud
World Bank Announces Debarment of Mr. Bounlert Chanthasounthone
- The World Bank Group announced on April 10, 2024, the debarment of Mr. Bounlert Chanthasounthone, a Lao national.
- Mr. Chanthasounthone is banned from participating in any projects or operations financed by the World Bank Group for 43 months.
Fraudulent Practices during the Reducing Rural Poverty and Malnutrition Project (RRPM) in Laos
- The Integrity Vice Presidency of the World Bank found Mr. Chanthasounthone submitted a fake consulting contract for an inflated salary.
- He received payments from both the RRPM Project, funded by the World Bank, and another project financed by the Asian Development Bank, violating financial rules and ethics.
Consequences of Mr. Chanthasounthone’s Actions
- The actions of Mr. Chanthasounthone undermined the integrity of the RRPM Project, which aims to help Laos design and implement nutrition-sensitive social assistance programs.
- His behavior violated the trust placed in him by the World Bank and other international development institutions.
Settlement Agreement
- In a settlement agreement, Mr. Chanthasounthone acknowledged his wrongdoings and agreed to certain conditions for release from debarment.
- He will undergo business ethics training and ensure firms he controls implement similar training programs.
Wide-Ranging Debarment
- The debarment applies to Mr. Chanthasounthone and any firms he controls.
- Under the Agreement for Mutual Enforcement of Debarment Decisions signed in 2010, other multilateral development banks can also enforce this debarment.
Message Sent by Debarment
- The debarment from World Bank-funded projects sends a strong message about the importance of integrity and honesty in managing development projects.
- The World Bank strives to maintain the highest ethical standards in its projects and has zero tolerance for fraud and corruption.