Scottish Firm Blacklisted by the World Bank for Fraudulent Practices

An anonymously owned Scottish firm has been blacklisted by the World Bank for being involved in fraudulent activity. The firm was winning deals from the medical aid program for emergencies in Uzbekistan.

The firm, NovoLine Resources L.P, is anonymously owned and registered in Edinburgh. It was found using fake documents to win the tenders funded by the World Bank. These tenders were for providing medical supplies like respiratory equipment and anaesthesia to Uzbekistan’s health ministry. 

The World Bank issued a notice that revealed that NovoLine Resources L.P, “be declared ineligible to be awarded or otherwise benefit from a Bank-financed contract, financially or in any other manner.”

This came after the allegation that the firm attempted to mislead the procurement authority through fraudulent documents to gain the award of the contract. These documents included the fake financial statements and the false sales contract of the equipment. 

Due to this practice, the firm has been embargoed by the World Bank from taking part in any procurement processes for 3.5 years at least. 

According to Glasgow Central MP, Alison Thewliss declared this incident unsurprising. She said, “By continuing to turn a blind eye, the U.K. government is essentially complicit in facilitating this type of activity. It has to get a grip on this problem and fast if it cares at all about the U.K.’s reputation as an honest place to do business.”

This fraud is not the first of its kind. Previously, anonymously owned Scottish companies have been involved in fraud in Uzbekistan. Four of the Scottish firms in 2018 were banned by the United Nations from taking part in the contract bidding. These anonymously-owned firms were engaged in fraudulent practices. 

However, the beneficial owners of such companies are yet to be identified. Experts believe that the owners of these firms are most likely to be found in Uzbekistan than in the U.K. 

Experts also say that the legal entities in the UK are the main part of the corruption in Uzbekistan. They are known to be hiding the identity of PEPs (Politically Exposed Persons), they are involved in money laundering and facilitating the payment for bribery, assisting in organized fraud, and manipulating the global financial system. 

According to Transparency International’s 2020 Corruption Perception Index, Uzbekistan is ranked as the 3rd most corrupt country in Eastern Europe.