Title: Lao National Debarred from World Bank-Funded Projects for Four Years Over Financial Fraud Allegations

World Bank Announces Debarment of Lao National

The World Bank Group announced on a given date the debarment of Mr. Bounlert Chanthasounthone, a national of the Lao People’s Democratic Republic, from participating in projects funded by its institutions.

Reasons for Debarment

Mr. Chanthasounthone was debarred due to fraudulent activities related to the Reducing Rural Poverty and Malnutrition Project (RRPM Project) in Laos.

Terms of Debarment

The 43-month debarment with conditional release means that:

1. Mr. Chanthasounthone and any firms he controls will be unable to participate in World Bank-financed projects.
2. He neither contests the underlying fraudulent practices nor the responsibility for these sanctionable actions.
3. He agrees to comply with certain conditions as part of his release from debarment.

Impact on the RRPM Project

The RRPM Project, aimed at designing and implementing nutrition-sensitive social assistance programs in Laos, was compromised by Mr. Chanthasounthone’s false actions. He reportedly:

1. Submitted a misrepresented prior consulting contract, which inflated his consultant salary under the project.
2. Concurrently claimed and received payments for the same work from another Asian Development Bank-financed project.

Both actions are considered fraudulent practices.

Conditions for Release

As part of the agreement, Mr. Chanthasounthone:

1. Will undergo corporate ethics training.
2. Commits his firms to implementing similar programs.
3. Is required to fully cooperate with the World Bank Group Integrity Vice Presidency following his release from debarment.

Effective Date and Multilateral Development Banks

The debarment, effective April 10, 2024, will apply to other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions, signed on April 9, 2010.