Even before the dust settled on the controversy involving Satyam's debarment, the World Bank Monday revealed that action has been taken against a total of five entities in India, including Wipro Technologies, and an individual.
The action was initiated against these entities and individual as they were found to have "violated the fraud and corruption provisions of the Procurement Guidelines or the Consultant Guidelines," besides offering improper benefits to
the bank staff.
Megasoft became the third Indian software vendor to have attracted the Bank's ire, while Nestor Pharmaceuticals and Gap International were non-IT entities. An individual Surendra Singh was barred from doing business with the Bank for violating guidelines.
While Wipro was barred for four years beginning June 2007 for "providing improper benefits to Bank staff", Megasoft barred for an identical period beginning December 2007 for "participating in a joint venture with Bank staff while also conducting business with the Bank."
World Bank Monday said it has decided to debar Indian software vendors Wipro as also Megasoft from directly doing business with the bank group under its corporate procurement programme, taking the number of large vendors debarred by it to three.
The Bank had announced debarment of Satyam Computer on December 25.
"This change was made in the interest of fairness and transparency," the Bank said in a statement.
This change aligns the disclosure practice for companies that provide goods and services directly to the Bank with the current policy governing procurement on Bank financed projects in developing countries.
"In parallel with the Bank's disclosure of the names of companies and individuals debarred on Bank-financed projects from now on, the Bank Group will publicly list the names of companies debarred from its corporate procurement," the statement added.
As per the Bank, Wipro has been excluded for four years till 2011 from getting direct contracts for providing improper benefits to Bank staff.
Whereas another IT firm Megasoft has been prohibited for four years from 2007, from getting direct contracts for participating in a joint venture with Bank staff, while conducting business also with the Bank.
"Our inability to get future business from World Bank will not adversely affect our business and results of operations," Wipro said in a statement.
Megasoft officials too said that the debarment will not have any revenue implication for the company.