The World Bank announced the debarment of two China construction companies and a medical equipment supplier in Romania.
Zhengtai Group Co. Ltd. and 20 affiliates were debarred for 15 months.
An investigation revealed the company’s fraudulent misconduct in connection with the Anhui Xuancheng Infrastructure for Industry Relocation Project in China.
Zhengtai Group’s bid included a falsified document. The World Bank disqualified the bid at the evaluation stage.
Zhengtai, known in Chinese as 正太集团有限公司, entered into a Negotiated Resolution Agreement with the World Bank.
Also debarred for 15 months was Hunan Shaping Construction Co., Ltd. (湖南省沙坪建设有限公司), sometimes known as Sunpeak Construction.
The World Bank said it submitted “a falsified bid guarantee letter” in its bid for the Integrated Economic Development of Small Towns Project in China. The company was awarded the contract but withdrew before contract signing.
The World Bank also announced the debarment of Romania-based Tehnoplus Medical S.R.L for two years.
A World Bank investigation found evidence that Tehnoplus paid €68,860 (about $74,000) in bribes in exchange for an equipment supply contract under the Romania Health Sector Reform 2 Project.
Tehnoplus Medical also entered into a Negotiated Resolution Agreement.
Under the terms of the Negotiated Resolution Agreement, Tehnoplus agreed to cooperate with the World Bank Group Integrity Vice Presidency and meet the Bank’s Integrity Compliance Guidelines (pdf).
The debarments, all announced on May 5, qualify for cross-debarment by other Multilateral Develpment Banks under the 2010 Agreement of Mutual Recognition of Debarments.
The parties to that agreement are the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the World Bank Group.
A list of all firms currently debarred by the World Bank is here.
The suspension and debarment process is conducted under the Bank’s Sanctions Procedures (pdf).
Richard L. Cassin is the publisher and editor of the FCPA Blog.