World Bank Sanctions China International Water and Electric Corp. for Misconduct in Africa and South East Asia | WPN World People News

The World Bank Group announced the debarment of Chinese state-owned enterprise China International Water and Electric Corp. (CWE) and its controlled affiliates for a period of three years with conditional release. The debarment is part of a Negotiated Resolution Agreement between the World Bank and CWE following an investigation by the World Bank’s Integrity Vice Presidency (INT) into allegations of sanctionable practices involving the company in a hydropower project in Africa and a roads project in South East Asia. The period of debarment reflects CWE’s cooperation with INT. Under the agreement, CWE has committed to improving its internal compliance program and to continue to cooperate with INT.

“This agreement reflects INT’s interest and willingness in resolving sanctions cases in a mutually agreeable manner with companies that are willing to acknowledge wrongdoing and who commit to improving their compliance regimes,” said Leonard McCarthy, World Bank Integrity Vice President.

An investigation by INT discovered that CWE misrepresented its experience during the procurement process in two World Bank-funded projects, a sanctionable practice under World Bank guidelines for procurement. The debarment of CWE qualifies for cross-debarment by other multilateral development banks under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010.

Source: World Bank