Monday, June 24, 2024

World Bank Suspends Chinese firm for 20 Months Over Fraud on Lusaka Transmission Project

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The World Bank says China-based Liaoning-EFACEC Electrical Equipment Company Limited (LEEEC) would be ineligible to participate in Bank-funded projects for 20 months due to fraudulent practices in connection with a project in Zambia.

The project is a US$ 210 million project consisting of the rehabilitation of the 132kV and 88kV transmission network in Lusaka Area and rehabilitation of the 33kV and 11kV distribution network in Lusaka Area and technical assistance and project supervision.

The debarment is part of a settlement agreement under which the company acknowledges responsibility for failing to disclose a conflict of interest and other “sanctionable practices”, and agrees to carry out remedial actions.

The case involves the Lusaka Transmission and Distribution Rehabilitation Project in Zambia, which was designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, Zambia.

According to the facts of the case, 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.

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.

The debarment of LEEEC 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.

This is according to a statement released by the World Bank in Washington today.

Meanwhile, in a related development, the African Development Bank Group has announced the debarment of Sinotec Company Limited, an energy solutions company registered in China, for a period of 36 months for engaging in fraudulent practices.

The announcement, which was made on 20 April 2020, is pursuant to a decision by the Bank’s Sanctions Appeals Board.

An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Sinotec Company Limited misrepresented its experience, the value and dates of its reference contracts and its relationship with other bidders while participating in three Bank-financed tenders under the Regional Rusumo Falls Hydropower Project in Rwanda, the Uganda Rural Electricity Access Project, and the Last Mile Connectivity Project in Kenya.

At the expiry of the debarment period, Sinotec Company Limited will only be eligible to participate in Bank-financed projects on the condition that it implements an integrity compliance programme consistent with the Bank’s guidelines

26 COMMENTS

  1. In Zambia you will never hear a Chink company suspended for fraud as its part and parcel for this corrupt regime of Lazy Lungu…I am sure ZESCO is implicated

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  2. This is just the tip of the iceberg in Zambia …just look at those grossly inflated road construction contracts …the joke is on us really; having these shameless lazy greedy morons who will provide helicopter and aircraft when you are dead yet were happy for you to send covid-19 samples in a death trap called Pool Tools Transport.

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  3. Was this case ever reported in Zambia? I might have missed it.
    So, WB is doing something that the Zambian Authotities should have addressed. Then talk about how the Western should not be interferring in Zambian affairs, right? Very selective when it suites you. No wonder, calls like one from Peter Sinkamba, can not be taken seriously.

    The Masters of bribes and corruption, suddenly are not commenting.

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  4. There are many such corrupt deals of which details will come out once this government is out of power.

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  5. Then we will hear some empty-headed Blogger supporting government for being quiet in the matter. It is unlikely that the government will institute any debarment of its own in this firm. All because of connections or the purchase of a ka Range Rover.

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  6. Where is the Chinese Bally Edgar Lungu ? Gon’ga President! Your time is coming. The leader of Nyongonyongo party-PF. Even the name of the company is fraudulent “LEEEC” It can only operate in Zambia or Africa and China. Well done World Bank. PF must go!

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  7. Most Chinese companies are very corrupt and when they meet the leadership of Edgar Lungu’s type, they rejoice. Edgar Lungu can not institute an investigation. He is the gon’ga of a president. PF must go!

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  8. Zambia is quiet. It takes the etire WB to open a leed sure. Such issues Kaiza Z and Thorn are maules. If HH ni number ones to comment. Change Governmt a lot of dirt deals will emerge. This WB wait IMF and ADB soonest. Pay retirees at PSPF.

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  9. Kaizar Zulu the daily PF trumpet on these pages is conveniently absent here on this WB fraud matters.

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  10. These Chinese companies only behave the way they do in Africa. If they dare do that even in China they know that consequences will dire. But then most Chinese companies doing business in Africa are government owned, so it’s the Chinese government doing what they do. And in most cases they facilitate illegal financial flows

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  11. Shameful that our own procurement system cannot track & countercheck qualification information given in tenders! What an embarrassment. All procurement officers at ZESCO must be replaced. Otherwise they will do even worse things.

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  12. real and sensensible things u won’t hear this riff raff kz give a comment.he is part and psrcel of all these deals.

  13. I told u KZ and Thoneintheflesh are maules bcoz their pf has been caught sleeping. It has become their thorn in the flesh. Zambia how? WB eyes are sharp and ur sleeping, no something is wrong somewhere. Pay retirees at PSPF.

  14. As usual it will take outsiders to come and sort out the mess in Zed. I am still trying to figure out what we did to deserve this.

  15. Can’t wait for 2021 for all these criminal companies to be thrown out of Zambia. And yes they can take corrupt Lungu with them.

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  16. Kaiza must have been part of this deal. Why the silence all of a sudden? This silence tells you something.

  17. The Chinese firms are known for even bribing the head of state. Don’t expect much from Zambia

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  18. Where is the toothless anti corruption? i guess they are still waiting for instructions from the head of state. I guess am way out of line asking this question, its asking turkey to suggest what will be for x-mass dinner! Chambia my country umulembwe wachipuba

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  19. Kaizar Zulu is frantically looking for his face mask but wait he might make a comment on this thorny issue directed at PF rule.

  20. Kenya and Rwanda? Edgar responsible? . Who provided the funds? Who did the Chinese companies dupe? Where did the Choncholi companies make a misrepresentation? Who is supposed to be responsible for choncholi companies misrepresentation to African development bank (AfDB) misrepresentation?

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