The World Bank Group yesterday said it had placed 18-month sanctions on two major Chinese engineering companies over fraudulent practices in an electrification scheme in Zambia.
It said China Electric Design and Research Institute (CEDRI) failed to disclose a conflict of interest and presented false documents with its parent company’s name in order to meet the requirements of a contract.
The parent company, China National Electric Engineering (CNEEC), failed to oversee CEDRI’s misconduct, the World Bank said.Â
The project was Lusaka Transmission and Distribution Rehabilitation project undertaken to boost the capacity of electricity transmission and distribution in Lusaka
CEDRI cannot participate in World Bank-funded projects for the period, while CNEEC can as long as it complies with its obligations under the settlement agreement.
The sanction is part of a settlement agreement under which CEDRI admits responsibility for the underlying sanctionable practices and agrees to meet corporate compliance conditions.
The length of the sanctions were reduced because the companies cooperated in the investigation.
The companies commited to developing integrity compliance programmmes.
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