W/ Bank Descends On China’s Electronic Company
-Announces 15-Month Debarment
The World Bank Wednesday announced a 15-month debarment of China-based Dongfang Electronics Co. Ltd. (Dongfang) in connection with fraudulent practices while bidding on a power project in Liberia.
In a dispatch dated June 12, 2019 from Washington D. C., the Bank disclosed that the debarment makes Dongfang, which provides electrical engineering, manufacturing, and research and development services, ineligible to participate in World Bank-financed projects. “It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment,” the dispatch says.The project, Liberia Accelerated Electricity Expansion Project Additional Financing was designed to increase access to electricity and strengthen institutional capacity in Liberia’s electricity sector. According to the facts of the case, during the bidding process, Dongfang falsified two letters asserting that the manufacturer of a type of equipment had authorized Dongfang to supply and install that equipment, which is a fraudulent practice, adding that Dongfang did not ultimately win the contract, the dispatch declares.
According to the dispatch, the settlement agreement, provides for a reduced period of debarment in light of the company’s cooperation and voluntary remedial actions. As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.
Meanwhile, the debarment of Dongfang qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.