The World Bank, now probing into the alleged irregularities in the bidding for Bangladesh's biggest Padma Bridge Project, has temporarily barred a unit of SNC-Lavalin, a big Canadian engineering company, from bidding on new bank projects, according to online reports.

SNC-Lavalin Inc said Monday a subsidiary has been temporarily barred from bidding on new contracts by the WB.

The bank launched an investigation into the alleged irregularities in the bidding process in September last. A contract to build the bridge has not been awarded.

But the row over alleged corruption has already led to the suspension of funding by the Washington-based lender for the crucial Bangladesh project.

The Canadian engineering giant's offices outside Toronto were raided in September 2011 by the Royal Canadian Mounted Police as part of an investigation into the company's work on Padma Bridge, a World Bank-funded project in Bangladesh. A month later, the World Bank suspended its $1.2 billion loan for the project, its biggest-ever off-credit line to any country.

The temporary suspension is not a final decision, but is meant to control the interactions the company has with the World Bank as it continues an investigation, SNC-Lavalin said. The company intends to respond to allegations outlined in a World Bank report, as is allowed under the institution's regulations.

The World Bank report, and therefore the allegations contained within it, are confidential, according to a description (pdf) of the temporary suspension process on the bank's website.

Ian Bourne, SNC-Lavalin's interim chief executive, said in a statement that the company respects the World Bank's decision, but that ongoing projects will continue, and other subsidiaries will bid for new projects.

"We launched our own internal investigation when this matter was first brought to our attention and we will continue to cooperate fully with the World Bank on this matter," said Bourne.

A World Bank spokeswoman didn't immediately respond to a request for comment.

SNC-Lavalin was going to act as the engineer for Bangladesh government in supervising the contractor responsible for building the bridge, which would link Bangladesh's underdeveloped south with the capital, Dhaka, and the country's main port, Chittagong. Once completed, it would be the largest bridge in the country.

In 2010, the World Bank joined a consortium of the Japanese government, the Asian Development Bank and the Islamic Development Bank to provide Bangladesh up to $2.9 billion for the bridge.

The temporary suspension is the latest in a string of developments surrounding SNC-Lavalin's business practices. Last month, the company's chief executive stepped down after an internal probe found he breached company policies by approving $56 million in payments that it said were inappropriate. SNC-Lavalin has also been under scrutiny for its business in Libya with the ousted regime of slain ex-leader Muammar Gaddafi.

"While we do not expect this World Bank decision will materially impact SNC directly, we view the news as negative, particularly given SNC's recent findings with respect to its internal board investigation," RBC Capital Markets analyst Sara O'Brien said.

She said she expected SNC's stock, which is down 22 percent in the past three months, to come under more pressure.

The stock finished 2.0 per cent higher at C$40.75 on the Toronto Stock Exchange on Monday. The news was released shortly before the market closed.

SNC, which is one of the world's biggest engineering companies, said it intends to provide a "comprehensive response" to the allegations contained in the confidential World Bank report.

It did not name the unit affected by the World Bank suspension. The company declined to comment further saying the World Bank report was confidential.

SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries.

Financial Express/Bangladesh/ 4th April 2012

Outgoing World Bank president Robert Zoellick on Tuesday gave his backing to a new development bank proposed by the leaders of the BRICS emerging countries.

Zoellick said the World Bank would be prepared to work with the new financial institution, which was discussed by the leaders of Brazil, Russia, India, China and South Africa when they met in New Delhi last week.

While the plans are still in their preliminary stages, such a bank is seen as a potential counterweight to other multilateral lenders such as the World Bank and the Asian Development Bank.

“As a general principle if the BRICS countries want to develop it we would work with it,” Zoellick told the Boao Forum in southern China, according to a transcript posted on the meeting’s website.

“We work with the regional development banks, and I have created a series of partnerships with these banks that are likely to be similar to the BRICS bank in that it will probably be more of a financing vehicle than a knowledge and experience vehicle.”

Last week’s BRICS summit was the fourth since the bloc was formed in 2009.

The Independent/Bangladesh/ 4th April 2012

NCC Bank Limited has opened two new ATM booths at Osmani Medical College and Naya Sarak in Sylhet recently.

Mohammed Nurul Amin, Managing Director of the Bank formally inaugurated the booths as chief guest, said a press release.

Among others, Deputy Managing Director TM Faruque Chowdhury and Executive Vice President Md. Omar Faruque Bhuiyan were present on the occasion.

The Daily Sun/Bangladesh/ 4th April 2012

Bangladesh Bank has invited nominations for “Bangladesh Bank Award-2011” from Bangladeshi citizens who have contributed lifelong in the economic field.

The invitation was made through a letter issued on Wednesday signed by Executive Director of Bangladesh Bank M. Mahfuzur Rahman.

Research works on any branch of the economy will be considered for the award but economic research in Bangladesh and researchers working in the country will be given priority.

The Daily Sun/Bangladesh/ 4th April 2012

Bangladesh Krishi Bank (BKB) has recently launched two new products named “BKB Double Profit Scheme and BKB Monthly Profit Scheme” at its principal office in the city.

Md Mukter Hussain, managing director of the Bank, formally inaugurated the two products through depositing money on the counter, said a press release.

Under the BKB Double Profit Scheme one can deposit at least Tk 20,000 and its multiple, one can get double after maturity of six year.

Besides, BKB Monthly Profit Scheme one can deposit at least Tk 1,00,000 and its multiple, one can get profit Tk 1,000 per month on 1,00,000.

Among others, Md Joynal Abedin and Manjur Ahmed, deputy managing directors, general managers of head office, deputy general managers and win valued customers of the Bank were also present on the occasion.

The Daily Sun/Bangladesh/ 4th April 2012