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ARTICLE · 29 NOVEMBER 2019

World Bank Group Debars Canadian Company

On October 30, 2019, the World Bank (Bank) announced that it had entered into a settlement agreement with Canadian company MTZ Equipment Ltd. (MTZ).

CanadaFinance and Banking

On October 30, 2019, the World Bank (Bank) announced that it had entered into a settlement agreement with Canadian company MTZ Equipment Ltd. (MTZ). The settlement agreement debarred MTZ from applying for or receiving any further Bank financing for a period of 30 months. The MTZ settlement is one recent example of the World Bank's sanctions in action, which has seen more than 700 firms and individuals publicly sanctioned. The settlement highlights that all those seeking financing from the Bank need to be aware of the Bank's integrity requirements, and develop and implement internal policies that take them into account.

MTZ and World Bank integrity requirements and sanctions

In the case of MTZ, it was alleged that their funding bid relating to an On-Farm Water Management Project (Project) based in Afghanistan included a false guarantee. The Project was designed to support Afghanistan's government with the improvement of agricultural productivity in project areas by

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