The World Bank Group has imposed a two-year sanction on Turkey-based engineering company Kontrolmatik Teknoloji Enerji Ve Mühendislik, citing fraudulent and obstructive practices in a major infrastructure restoration program in Iraq.

According to the Bank, Kontrolmatik submitted fabricated past-performance documents while bidding for a contract under the $750 million Emergency Operation for Development Project, and impersonated a third party to verify them. Investigators also found that a company employee attempted to obstruct the probe by providing false statements.

The sanction forms part of a settlement agreement in which Kontrolmatik admitted wrongdoing and pledged to implement corporate compliance measures.

Launched in 2015, the Emergency Operation for Development Project is designed to rebuild damaged infrastructure and restore essential services—including electricity, water, sanitation, transportation, and housing—in targeted Iraqi municipalities. The program is scheduled to continue until 2026.

Sanction Details

• Phase One (Year One): Kontrolmatik is barred from bidding on World Bank-financed projects.
• Phase Two (Conditional Non-Debarment): If the company fulfills its compliance obligations, it may resume bidding under strict conditions.

Kontrolmatik has also committed to full cooperation with the World Bank Group Integrity Vice Presidency. The Bank noted that the sanction was reduced due to the company’s “significant cooperation” and voluntary remedial actions.