March 21, 2021

World Bank debars China-based engineering company for four years for fraudulent practices

On March 9, 2021, the World Bank Group announced the four-year debarment of Hunan Allonward Hydro-Generating Equipment  Co., Ltd. (Allonward or the Company), a Chinese engineering company, for engaging in fraudulent practices in connection with a contract for the construction of hydroelectric facilities for the Burundi Jiji and Mulembwe Hydropower Project.  According to the World Bank, Allonward misrepresented its work experience in an initial submission expressing its interest in this project, and, in its subsequent bid for the project, misrepresented its intention not that it did not intend to pay any commissions in connection with the project’s procurement or execution.   During its debarment period, Allonward is ineligible to participate in World Bank projects, and is subject to cross-debarment by other multilateral development banks.

The World Bank explained that, in making its debarment decision, it considered as aggravating factors that (i) the Company had engaged in repeated fraudulent practices and (ii) the Company’s chairman had participated in the misconduct.  It considered as a mitigating factor that representatives of the Company had met with World Bank investigators and that the Company had admitted to engaging in misconduct.  The World Bank also stated that, as  a condition of its release from debarment after its four-year term, Allonward must take appropriate remedial measures and develop an effective integrity compliance program.

World Bank Notice of Uncontested Sanctions Proceedings