World Bank debars Techno Brain: Malawi told to cancel all deals

World Bank has banned Techno Brain for collusive and fraudulent practices the company used to influence the awarding of a contract in its favor.

Kenya-based Techno Brain (Kenya) Limited (“Techno Brain Kenya”), an IT-services company, has been banned for twenty-eight-months while its parent company, United Arab Emirates-based Techno Brain Global FZ-LLC (“Techno Brain UAE”) has been debarred for ten-month.

The two companies will be ineligible to participate in projects and operations financed by institutions of the World Bank Group.

According to a World Bank statement dated October, the ban relates to the Integrated Public Financial Management Reform Project II in Liberia.

The project was designed to improve domestic revenue mobilization systems and strengthen financial control and accountability in public finances.

According to the facts of the case, Techno Brain Kenya and Techno Brain UAE engaged in an arrangement to obtain and edit confidential bidding documentation so as to influence the awarding of a contract in their favor.

“Techno Brain Kenya was subsequently awarded the contract, even though its bid did not meet tender requirements, thus necessitating a substantial reduction in the extent of work provided under the contract. Furthermore, Techno Brain Kenya, guided by Techno Brain UAE, claimed technical qualifications of sister companies as its own to meet contract specifications. These actions are considered collusive and fraudulent practices, respectively, as defined by the World Bank’s Procurement Regulations,” reads part of the statement.

It adds that, under the terms of the settlement agreement with the World Bank, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.

Techno Brain has a branch in Malawi and according to the company’s website, it conducts business with the Malawi government. Such deals include a contract to design and implement an Integrated Financial Management Information System (IFMIS) for 35 Local councils.

Techno Brain  was also engaged in supply of Malawi Passports and in 2018, the Anti-Corruption Bureau opened investigations against the company over procurement of passports.

Following the debarment by World Bank, there are calls for government to cancel any deals with company.