World Bank INT Case 8: concealed conflict of interest between design consultant and contractor
Risk Mechanism
A firm involved in preparing design or advisory materials concealed its affiliation with a contractor presented as independent while bidding on the same project, undermining segregation of duties, independent review, and fair competition.
Case Summary
Case 8 of the World Bank Integrity Vice Presidency’s Fraud and Corruption Awareness Handbook describes a design consultant and a contractor presented as independent whose submissions shared nearly identical telephone numbers, company descriptions, formatting errors, and the same contact name. These similarities indicated that the design firm was also bidding for the construction contract, creating a concealed conflict of interest.
Risk Lesson
This case illustrates how undisclosed affiliations between design consultants and bidding contractors can compromise design integrity, independent review, and fair competition before contract award. It highlights warning signs such as matching contact details, near-identical submission content, shared formatting patterns, and other indicators that firms presented as independent may be linked.
Reference
World Bank Integrity Vice Presidency. (2010). Fraud and Corruption Awareness Handbook, Case 8: Example of fraud to conceal conflict of interest. Available from: https://documents1.worldbank.org/curated/en/100851468321288111/pdf/575040WP0Box351Corruption1Awareness.pdf