Maravi

World Bank blacklists 4 Chinese contractors

World Bank blacklists 4 Chinese contractors
Written by Chibaula Silwamba

THE World Bank has debarred China Geo-Engineering Corporation together with three other Chinese contractors from tendering for the bank's financed projects over alleged corruption. China Geo-Engineering Corporation is one of the many Chinese companies constructing roads in Zambia.

But China Geo-Engineering Corporation (CGC) branch manager in Zambia Li Jinping declined to comment, saying he was not aware of the World Bank's debarment of his company.

In a media statement issued last Wednesday, the World Bank named China Geo-Engineering Corporation as one of the seven firms from China and Philippines that were debarred for engaging in collusive practices under a major World Bank financed roads project in the Philippines.

"The firms and lengths of debarments [are as] follows: China Geo-Engineering Corporation was debarred for five years. The debarment can be reduced or terminated after three years if the firm puts in place a compliance programme satisfactory to the World Bank," the bank stated. "E. C. de Luna Construction Corporation and Eduardo C. de Luna, owner and sole proprietor of the firm, were both debarred indefinitely - the first permanent debarments since 2004. China Road and Bridge Corporation was debarred for eight years. The debarment can be reduced or terminated after five years if the firm puts in place a compliance programme satisfactory to the World Bank. China State Construction Corporation and China Wu Yi Co. Ltd were each debarred for six years. In the case of each firm, the debarment can be reduced or terminated after four years if that firm puts in place a compliance programme satisfactory to the World Bank."

The World Bank made the decision after investigations.

It stated that the debarments, which prevent the companies from bidding on future World Bank-financed contracts, either indefinitely or for the period of the sanctions, result from an in-depth inquiry conducted by the World Bank's Integrity Vice Presidency (INT).

INT is responsible for investigating allegations of fraud and corruption in the World Bank financed operations.

"INT closely analysed the procurement process the firms participated in and conducted numerous interviews before closing the investigations and initiating sanctions proceedings against the entities," it stated.

World Bank Integrity Vice President Leonard McCarthy stated that the INT was in the process of conducting a worldwide review of the Bank's activity in the roads sector.

"This is one of our most important and far-reaching cases, and it highlights the effectiveness of the World Bank's investigative and sanctions process," stated McCarthy. "As the World Bank Group continues to ramp up its anti-corruption work, INT will remain vigilant in investigating allegations and holding wrongdoers accountable."

When contacted on phone in Lusaka on Monday, Li said he did not know anything about the debarment.

"I have no idea about this. I can't comment," said Li in Lusaka.

Labels: CHINESE, CONTRACTORS, World Bank

posted by MrK @ 8:20 AM