By Roderick T. dela Cruz

The World Bank yesterday said it followed the procedures in blacklisting four Chinese companies, three Filipino firms and a businessman, which it accused of collusion over a road project. It said it is leaving to the governments of the Philippines and China to pursue the filing of criminal cases against the accused.

The Washington-based lender said the debarred firms were afforded due process and given ample time to contest the findings about their ?collusive practices.?

The bank said all respondents in the case received the notice of sanctions proceedings in May 2008 and were given 90 days to submit a response in their defense and contest the allegations against them. It said the firms were also offered the opportunity as part of their response to request a hearing before the bank?s Sanctions Board.

?The Sanctions Board took all of their submissions into account in making their decision,? it said.

The bank clarified that its sanctions regime is an administrative process, and not a criminal one.

It said its investigating unit called Integrity Vice Presidency has shared its investigative reports with the Philippines and China. The report prompted Public Works Secretary Hermogenes Ebdane to order his department?s own inquiry into the issue.

The bank said a copy of the INT report was given to the Philippines? Finance Department and the Office of the Ombudsman as early as 2008.

An in-depth inquiry conducted by the Integrity Vice Presidency uncovered evidence of a major cartel involving local and international firms bidding for contracts under phase one of the Philippine National Roads Improvement and Management Program.

The four Chinese firms were identified as China Road and Bridge Corp., China State Construction Corp., China Wu Yi Co. Ltd., and China Geo-Engineering Corp.

Local firm E. C. de Luna Construction Corp. and its owner Eduardo C. de Luna, were debarred indefinitely?the first permanent debarments since 2004. Cavite Ideal International Construction and Development Corp. and CM Pancho Construction Inc. were each debarred for four years.

These firms were investigated for alleged ?collusive practices? to rig the bidding for two road contracts under phase one of the National Roads Improvement and Management Program financed by a $150-million loan from the World Bank. It defined ?collusive practice? as an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party.

The report said that between 2003 and 2006, the investigating team identified excessive pricing and other signs of possible collusion on three successive rounds of bidding for two road rehabilitation contracts.

During a thorough investigation, the investigating unit said it gathered evidence that several firms and individuals may have engaged in collusion in connection with the bidding for these two contracts.