EBRD announces settlement with engineering and construction firm Omrab

• The EBRD and Omrab reach settlement regarding fraud in EBRD-financed project
• Sanction consists of a 13-month debarment
• Settlement reduces debarment period owing to Omrab’s admission of culpability and other mitigating factors

The European Bank for Reconstruction and Development (EBRD) has announced a 13-month debarment of Omrab Canada Inc. and Omrab Engineering Company (P.J.S.) (together, Omrab).

The settlement was reached in connection with fraudulent practice related to the Khorezm Water project, which aims to improve water and wastewater infrastructure in the Khorezm region of Uzbekistan.

In order to meet the tender security requirements in one instance of procurement, Omrab submitted documentation (provided by a local partner in Uzbekistan), which the EBRD’s Office of the Chief Compliance Officer (OCCO) found to be fraudulent.

The settlement agreement provides for a reduced sanction in light of Omrab’s cooperation during OCCO’s investigation, its admission of culpability for the fraudulent practice and its voluntary restraint from participating in other EBRD-financed projects.

The debarment makes Omrab ineligible to participate in projects and operations financed by the EBRD for 13 months.

The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on 9 April 2010. 

About OCCO

OCCO plays a central role in the EBRD’s commitment to integrity through its mandate to investigate prohibited practices in EBRD-financed projects. More information on OCCO’s broader mandate and on the EBRD’s sanctions system is available on our website.