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21 February 2024

World Bank bars deals with two firms


Two Indian companies have been barred from dealing with the World Bank over allegations of improper payments, the bank said in a statement.

The companies involved are India's third-largest software company, Wipro Technologies, and a subsidiary of technology outfit Megasoft India, the bank said.

Wipro is accused of "providing improper benefits to [World] Bank staff", while Megasoft is said to have been involved in "a joint venture with bank staff while also conducting business with the bank". Wipro said the ban would not adversely affect its business as its revenues from the bank were "insignificant".

The sanction related to its listing in 2000, when it issued American depository shares to family members and friends of World Bank employees, the company told the Mumbai stock exchange.

"They purchased 1,750 shares for $72,000 (Dh264,240) and signed a statement that their purchase did not violate any ethics or conflict of interest policies of their company," it added.

The shares were offered through a "commonly utilised" programme approved by the US regulator.