The World Bank Group today announced the three-year conditional non-debarment of China First Metallurgical Group Co., Ltd. (CFMCC), a company that provides engineering construction services, in connection with a fraudulent practice under the Hubei Xiaogan Logistics Infrastructure Project in the People’s Republic of China.
CFMCC was sanctioned with conditional non-debarment, which means that it remains eligible to participate in projects and operations financed by institutions of the World Bank Group as long as it complies with its obligations under the settlement agreement. Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank Group projects and operations until the conditions for release set out in the settlement agreement are met.
The project was designed to enhance the connectivity and efficiency of the logistics operations of the Xiaogan Logistics Park in Hubei Province. When competing for a contract financed by this project, CFMCC misrepresented its proposed project manager’s work experience, which is a fraudulent practice.
The settlement agreement provides for a reduced sanction in light of the company’s voluntary disclosures, corrective actions, and restraint from bidding on Bank Group-financed contracts, and its cooperation. 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.