Satyam, and now, Wipro Technologies and Megasoft, join the 300 companies that have been blacklisted by the World Bank Since 2000. The list includes four other India-based vendors.
GAP International (India), a corporate training firm, and an individual Surendra Singh whose identity could not be verified, have been permanently barred since 2001. The Bank banned Nestor Pharmaceuticals in 2007 until 2010, and Pune-based Pure Pharma until 2007.
IT companies came under the Bank radar as its procurement policy of 2006 included “allotment of shares” as grounds for imposing bans. The others have been banned for alleged malpractices in the tendering process.
“Wipro should have known that awarding shares to the staff while working with the Bank is against its regulations. However, the ban was imposed only after the policy came into effect in 2006,” a World Bank spokesman told ET.
According to IT industry sources, the total value of World Bank’s outsourcing business given to Indian companies annually is around $25 million. TCS is its largest vendor in India and the company also provides back-up to the Bank’s back-office in Chennai.
“After Wipro and Satyam’s ban, all the contracts handled by them were awarded to us,” said a TCS official, who asked not to be named.
When contacted, a TCS spokesman declined to comment. However, the World Bank spokesman confirmed that TCS is one of its IT vendors, without disclosing the size of the contract.
The World Bank spokesman said: “In 2000, when the request for proposal (RFP) was given to us by Wipro we categorically asked them if they had awarded any shares to World Bank officials. Wipro had denied it then. World Bank has always asked prospective vendors to disclose any such allotment of shares as we do not favour awarding contracts to those who have given shares to our officials.”
