US engineering company ARINC has been banned from World Bank projects for 33 months for procurement violations on a Bank-funded airport development project in Egypt.
The news comes just a week after Serbian contractor Energoprojekt Niskogradnja was debarred from World Bank projects for 2.5 years after admitting fraud on a Bank-financed road and development project in Uganda.
The World Bank did not illuminate "procurement violations", but Carlyle Group affiliates have a history of bribery. Serbian Fraud got 30 months from the World Bank. Carlyle-ARINC's offense warranted an extra 10% penalty at 33 months.
The Carlyle Group and its partners settled a New York "pay to play" pension fund investigation without admitting guilt. Carlyle's Synagro Technologies bribed the wife of Representative John Conyers.
Another recent Carlyle bribery story came courtesy of WSJ.
Allison Transmission, which is backed by Carlyle Group and Onex Corp., is being sued by a former employee who alleges he lost his job after reporting bribery in China.If something smells, it's a PEU (private equity underwriter). Extrinsic motivators distort behavior. Greed compounds it exponentially.
Update 3-10-13: Despite being banned by the World Bank for unethical behavior on an Egyptian project, ARINC won more Egyptian work.
