World Bank Sanctions Chinese Firm for Fraudulent Practices

The World Bank has announced the debarment of China Communications Construction Company (CCCC) Limited, and all its subsidiaries, for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.

 

Under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until January 12, 2017. This action is based on recent changes in the World Bank sanctions

system to clarify that successor organisations – through purchase or reorganisation – will be subject to the same sanctions applied to the original firm.

 

CCCC is the designated successor entity to China Road and Bridge Corporation (CRBC) which, along with six other firms and one individual, was debarred by the World Bank for eight years, beginning January 12, 2009, following an  investigation of the National Roads Improvement and Management Project by the World Bank’s Integrity Vice Presidency (INT). No World Bank funds from the NRIMP project were disbursed to any of the sanctioned firms.

 

As part of its development program, the World Bank has been working with the Government of China on strengthening its approach to dealing with governance and corruption. Earlier this year the Bank recognized and appreciated that China’s National People’s Congress amended the country’s criminal law to make it an offence for Chinese companies and Chinese nationals to bribe foreign government officials.

 

The law applies to companies organised under Chinese law and would include Chinese companies overseas and wholly foreign-owned enterprises in China.

 

 

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