EBRD Gives Uzbekistan's Fergana Omegamet Cold Shoulder Following Fraud Investigation

(MENAFN- Trend News Agency) TASHKENT, Uzbekistan, May 23. The European Bank for Reconstruction and Development (EBRD) has thrown the book at the Uzbek company Fergana Omegamet, slapping them with a 23-month debarment for pulling the wool over everyone's eyes with fraudulent practices tied to the Namangan water project, Trend reports.

The project aims to renovate water and wastewater infrastructure in Uzbekistan's Namangan region.

An investigation by the EBRD's Office of the Chief Compliance Officer (OCCO) found that, in the context of one of the procurements related to the Namangan water project, Fergana Omegamet had misrepresented its prior work experience by submitting forged documents as part of its proposal. It had also failed to disclose in its technical proposal, as required, payments made to a local agent.

The settlement agreement provides for a reduced sanction in light of the company's cooperation during OCCO's investigation, its admission of culpability for the fraudulent practices described, and its voluntary restraint in not bidding in EBRD-financed tender procedures.

Consequently, the entity is disqualified from engaging in EBRD initiatives for a duration of 23 months. The debarment is additionally contingent upon cross-debarment by other multilateral development institutions in accordance with the 2010 Agreement for Mutual Enforcement of Debarment Decisions.

OCCO serves as a pivotal entity within the European Bank for Reconstruction and Development (EBRD), executing its mandate to scrutinize and investigate illicit practices associated with projects financed by the EBRD.

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