This archive report was first published on 7 May 2020.
On May 7, 2020, the World Bank Group announced the 20-month debarment of China-based Liaoning-EFACEC Electrical Equipment Company Limited (LEEEC), a company that provides design, manufacturing, and maintenance services for electrical equipment.
The debarment makes LEEEC ineligible to participate in World Bank-financed projects. As part of a settlement agreement, 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 Lusaka Transmission and Distribution Rehabilitation Project aimed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, Zambia. However, LEEEC failed to disclose a conflict of interest and misrepresented its past contract experience to meet the requirements of a contract under the project, which is a fraudulent practice.
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.
The debarment of LEEEC qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010.
