Energo Projekt, a Serbian civil engineering and construction company has been suspended by the World Bank from undertaking any projects funded by the bank for the next two-and-half years, citing fraudulent practice.
Energo Projekt is involved in the construction of 106 kilometer Kawempe – Kafu road stretch which connects to the city at the tune of $7.3 million.
Investigations led by Mr Leonard McCarthy, the World Bank vice-president in charge of integrity, faulted Energo Projekt for alleged fraud.
Energo Projekt is accused of breaking clause 1.15 (a) (ii) of the World Bank procurement guidelines in relation to unnamed road projects in Uganda according to The World Bank communication office in Kampala.
According to a January 3 statement, Mr McCarthy said hold-up of the firm is another example of why combating corruption is of great importance for the bank and companies engaged in development projects.
The spokesperson of Uganda National Roads Authority, Mr Dan Alinange, says the firm misrepresented information in the bid for Kawempe – Kafu road, but was tight lipped about the details because of the confidentiality e agreement between the Bank and Energo Projekt.
This move comes at a time when the World Bank is in the process of reviewing all its projects in Uganda following the discovery of massive corruption in the Office of the Prime Minister.
Last year, the World Bank also suspended Oxford University Press Limited East Africa after they admitted misconduct in handling of education projects.