World Bank Announces Settlement with Tetra Tech International Development B.V.

WASHINGTON, March 2, 2022 — The World Bank Group today announced the 15-month sanction of Tetra Tech International Development B.V., a Netherlands-based company that provides consulting, engineering, and project management services, in connection with a fraudulent practice as part of the Somali Core Economic Institutions and Opportunities Program (SCORE) (the “SCORE Project”) in Somalia.

Tetra Tech International Development B.V.—formerly known as WYG International B.V., whose former parent company was acquired by a Tetra Tech, Inc. subsidiary in July 2019—was sanctioned with conditional non-debarment. This means that it remains eligible to participate in projects and operations financed by institutions of the World Bank Group as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met.

The SCORE Project was designed to     improve the enabling environment for private and financial sector development, and to catalyze private investment and job creation. According to the facts of the case, during the selection of a consultant to provide services under the SCORE Project, Tetra Tech International Development B.V. in 2016 failed to disclose in its technical proposal, as required, an agent who also played the role of a subcontractor, and the commissions and gratuities to be paid to the agent. Tetra Tech International Development B.V. in 2017 also failed to obtain the required advance approval of the client before entering into the subcontract, which is a fraudulent practice.

The sanction is part of a settlement agreement between the World Bank, Tetra Tech International Development B.V., the entity responsible for the misconduct, and its parent company, Tetra Tech, Inc. Tetra Tech, Inc. has signed this settlement agreement as a non-sanctioned party, since it has ultimate oversight for the compliance of its group, including Tetra Tech International Development B.V.

The settlement agreement provides for a reduced period of sanction in recognition of Tetra Tech International Development B.V.’s significant cooperation, which included its reporting to INT of the agreement with the undisclosed agent once this became known by their senior management, efforts related to its integrity compliance program and Tetra Tech Inc.’s existing global compliance program, and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to further develop and implement its integrity compliance program to reflect the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.

Contacts:

In Washington: Daniel Nikolits, (202) 473-2475, dnikolits@worldbankgroup.org

For more information, please visit: www.worldbank.org/integrity