Republic of Kiribati Grid Connected Solar Photovoltaic Project Redacted Report June 2019 Statement of Use and Limitations This Report was prepared by the World Bank Group (the “WBG”) Integrity Vice Presidency (“INT”). It provides the findings of an INT administrative inquiry (the “Investigation”) into allegations of corrupt, fraudulent, collusive, and/or coercive practices, as defined by the WBG for purposes of its own policies, rules and procedures (the “WBG’s Anti-corruption Framework”), in relation to the WBG-supported activities. The purpose of the Investigation was to allow the WBG to determine if the WBG’s Anti-corruption Framework has been violated. This Report is being shared to ensure that its recipients are aware of the results of the INT Investigation. However, in view of the specific and limited purpose of the Investigation underlying this Report, this Report should not be used as the sole basis for initiating any administrative, criminal, or civil proceedings. Moreover, this Report should not be cited or otherwise referred to in the course of any investigation, in any investigation reports, or in any administrative, civil, or criminal proceedings. This Report is provided without prejudice to the privileges and immunities conferred on the institutions comprising the WBG and their officers and employees by their respective constituent documents and any other applicable sources of law. The WBG reserves the right to invoke its privileges and immunities, including at any time during the course of an investigation or a subsequent judicial, administrative or other proceeding pursued in connection with this matter. The WBG’s privileges and immunities cannot be waived without the prior express written authorization of the WBG. 1 Background In March 2013, the International Development Association and the International Bank for Reconstruction and Development (collectively, the “Bank”) and the Republic of Kiribati entered into Financing Agreements for the Grid Connected Solar Photovoltaic Project (“GCSPP” or the “Project”) in Kiribati. The Project was financed by a Trust Fund with the Bank acting as administrator. The Kiribati Public Utilities Board (“PUB”) is the project implementing entity. The Project closed in October 2018. The Project aimed to improve energy security and reduce Kiribati’s dependence on imported petroleum by replacing their current diesel-based electricity supply with a grid-connected solar photovoltaic electricity supply. The PUB issued a call for bids for a Project contract (the “Contract”). Company A bid for the Contract. Allegations INT received allegations that, in its bid, Company A had proposed the name and credentials of a former employee and engaged in potential fraud in another non-Bank-financed project in Kiribati. Findings Evidence indicates that Company A knowingly misrepresented the availability of an employee for two key personnel positions in its GCSPP bid. The GCSPP Bidding Documents required bidders propose personnel for Project Manager, three different engineers; and a Trainer. Bidders were required to submit resumes, qualifications, and relevant experience of proposed personnel. GCSPP also required the proposed personnel to have a minimum of 10 years of experience with at least 5 years of experience in the proposed position. In its GCSPP bid, Company A proposed one individual, represented as a current Company A employee (the “Employee”), for two key personnel positions – an Engineer and Trainer. Company A’s purported qualifications for the contract relied heavily on the Employee’s credentials and approximately 20 years of experience. However, evidence indicates that the Employee had submitted his/ her letter of resignation to Company A a month prior to bid submission. Evidence indicates that his/ her last day of work at Company A was prior to bid submission. Evidence indicates that Company A’s management knew of the Employee’s resignation and end of employment. Evidence indicates that that Company A management “reworked” some of the GCSPP bid components after the Employee’s resignation, but kept the former Employee as key personnel in the bid offer despite his/ her resignation. Evidence indicates that Company A only disclosed the former Employee’s unavailability after the PUB directly inquired into Company A’s proposed Project personnel. 3 Corrective Actions The World Bank imposed the sanction of debarment on Company A. 4