World Bank bans Delaware computer co.

A Delaware-based computer company was debarred by the World Bank for fraudulent practices in a Russian project.

The bank said that Universal Technology Systems, a company that buys, sells and rents computer equipment, will be banned from getting involved with bank-funded projects for the next five years, as will the company's owner, Andrei Kozhin.

"The case concerned fraudulent practices committed during the procurement process in the World Bank-financed community social infrastructure project. The project was administered by the Ministry of Nationalities and Federal Affairs of the Russian Federation through a central project implementation unit," the bank said. It pointed out that UTS had submitted a false bank guarantee and forged a manufacturer's letter of authorization, in addition to providing misleading information.

"The Russian people deserve to have their projects free of fraud and corruption, and their financial resources used effectively and efficiently. An open and transparent competitive bidding process is key to this system working properly. We are grateful to the Russian officials who first identified this fraudulent activity, as it allowed the right steps to be taken before any funds were disbursed or any harm came to the project," said Kristalina Georgieva, the bank's country' director for the Russian Federation.

Copyright 2006 by United Press International

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