- The EBRD and four Egis entities reach a settlement regarding fraudulent practices in two EBRD-financed projects
- Sanction consists of a 33-month conditional non-debarment
- Settlement reduces sanction on account of Egis entities’ voluntary disclosures and other remedial actions
The European Bank for Reconstruction and Development (EBRD) has announced a 33-month conditional non-debarment of four consulting companies that are part of the French group Egis, and of two subsidiaries, in connection with fraudulent practices under two EBRD-financed projects.
The consulting companies, sanctioned following an investigation by the EBRD Office of the Chief Compliance Officer (OCCO), are Egis International S.A.S., Egis Eau S.A.S., Egis Ukraina L.L.C. and Egis Rail S.A. (the Egis entities).
The first project involves the rehabilitation of the wastewater infrastructure of Horezm Oblast in Uzbekistan. During the project implementation stage, Egis International, Egis Eau and Egis Ukraina misrepresented the availability and involvement of a key expert.
The second project concerns the upgrade and electrification of an existing rail line connecting downtown Alexandria and the north-eastern town of Abou Qir in Egypt. In this case, Egis Rail failed to disclose a local agent’s involvement in connection with the procurement and contract execution. Project details here: https://www.ebrd.com/work-with-us/projects/psd/49905.html
The settlement agreement provides for a reduced sanction in light of several mitigating factors, such as internal detection, timely and voluntary disclosure, full cooperation during OCCO’s investigations, the undertaking of internal investigations and other remedial actions.
The sanction is part of a settlement agreement under which the Egis entities admitted culpability for the underlying fraudulent practices.
The Egis entities were sanctioned with conditional non-debarment, which would generally allow them to participate in Bank-financed projects if they comply with the settlement terms.
Egis Ukraina and Egis Rail will remain eligible to participate in EBRD-financed projects and operations, provided that the companies comply with their obligations under the settlement agreement, including maintaining full cooperation with the EBRD.
Due to a pre-existing, unrelated cross-debarment sanction, Egis International and Egis Eau remain ineligible to participate in EBRD projects until 2 January 2027. After this date, the two companies will become eligible to participate in Bank-financed projects and operations if they meet the compliance conditions indicated in the settlement.
In order to be released from the conditional non-debarment, the Egis entities agree to meet specific corporate compliance conditions, including conducting internal investigations related to EBRD-financed projects. In case of non-compliance with the conditions of the settlement, the conditional non-debarment will convert to a 24-month debarment.
Media statement as issued by EBRD.
