Asset Recovery Watch

ARW-28
C. Lotti and Associati Societa’ di Ingegneria S.p.A. (Lotti)
Italy
Undertaking Recovery Effort, Location of Recovery Effort (World Bank)
2011
Art.26
No
Administrative Sanctions (Negotiated Resolution Agreement)
Unspecified cooperation
In announcing the Negotiated Resolution Agreement, the Integrity Vice Presidency stated, “This moves us closer to answering a longstanding call by victim countries to return illicit gains." (Source: World Bank Press Release, "Enforcing Accountability: Italian Company Lotti to pay US$350,000 in restitution to Indonesia after acknowledging fraudulent misconduct in a World Bank-financed project," December 22, 2010.)
Completed
Assets Returned to Victim or Requesting Jurisdiction
$350,000
No
N/A

According to the World Bank press release of December 22, 2010, "The World Bank Group debarred C. Lotti and Associati Societa’ di Ingegneria S.p.A. (Lotti) in the wake of the company’s acknowledged misconduct in a World Bank investigation relating to a Bank-financed public works project in the water sector in Indonesia.  Under the negotiated resolution agreement, Lotti has committed to pay an estimated US$350,000 in restitution to Indonesia, where the World Bank-financed project was being implemented.  This is the first time the World Bank included restitution payment in resolving an investigation into fraud in a Bank-financed project. The restitution amount of US$350,000 represents the unjustified payments received by Lotti as well as its partners as a result of fraudulent invoicing."  (Source: World Bank Press Release, "Enforcing Accountability: Italian Company Lotti to pay US$350,000 in restitution to Indonesia after acknowledging fraudulent misconduct in a World Bank-financed project," December 22, 2010.) 

N/A (Administrative Sanctions by the World Bank)

World Bank Integrity Vice Presidency
N/A