The Tanzania government is investigating Crown Agents Services (Tanzania) Ltd, an affiliate of the UK-based Crown Agents for Overseas Governments and Administrations Ltd, after it was barred by the World Bank from operating in the country for six months for breach of procurement guidelines.

Crown Agents is an international development specialist that, in its own words, “works with leaders across the world to make profound changes to systems, organisations and society.”

An official with Prevention and Combating of Corruption Bureau (PCCB) said the body was investigating the company in Tanzania after the UK Company and its affiliates were sanctioned under the World Bank fraud and corruption policy in October this year for six months over fraudulent practices in relation to a World Bank-executed project in 2006. The sanction also covers Crown Agent Services (Tanzania), which was incorporated in Tanzania in December 1979.

“Due to the fact that the firm is incorporated in Tanzania, PCCB needs to get some response over the allegations of fraud and corruption,” said the official.

Veena Mapara, press and information officer for the UK’s Serious Fraud Office told The EastAfrican from London that “SFO cannot confirm nor deny our investigation but we are taking any measures including instructing external lawyers to conduct a review of the books and records of the company with a view to identifying areas of corruption risk.”

SFO said unless otherwise indicated, in the case of a firm debarred by the World Bank in the first instance, ineligibility extends to any firm or individual that the debarred firm directly or indirectly controls; and in the case of a debarred individual, ineligibility extends to any firm that the debarred individual directly or indirectly controls

Sarah Potter, knowledge and communications director of Crown Agents, said from London that Crown Agents remains barred, until January 27, from eligibility to be awarded contracts for World Bank financed or executed projects.

Ms Potter said that the disbarment relates to the availability of a consultant at the time of contract signature for a project on which the firm bid successfully in 2006. According to her, the firm acted recklessly in misrepresenting the availability of a key consultant to work on a contract awarded to Crown Agents under this project. 

“This was an isolated error on our part and we have accepted our responsibility for it. Our debarment does not affect World Bank-financed projects that we are currently working on, but means that we cannot be awarded new projects until the disbarment period ends,” she said.

According to Ms Potter, the period of disbarment imposed upon the firm is limited only to the World Bank and is not subject to cross-disbarment by any of the other multilateral development banks.

Crown Agents said that it had never intentionally sought to obtain advantage by any misrepresentation and was very concerned that its internal procedures did not prevent this error. 

Daniela Brakewell, senior communications manager for Crown Agents, said the disbarment had no impact on the work Crown Agents is doing in Tanzania. 

Ms Brakewell said through Crown Agents USA, one of the affiliates that has been debarred, the firm is managing $698 million from the Millennium Challenge Corporation for the government of Tanzania in the procurement of a wide range of goods and services.