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World Bank Debars Chinese Engineering Company for Fraudulent Bidding Practices in Connection With Liberian Infrastructure Project

Authors: R. Zachary Torres-Fowler and Anthony V. Finizio

6/20/2019

Read the full post at Constructlaw

World Bank Debars Chinese Engineering Company for Fraudulent Bidding Practices in Connection With Liberian Infrastructure Project

On June 12, 2019, the World Bank announced that China-based Dongfang Electronics Co. Ltd. (Dongfang) would be debarred for fifteen (15) months for fraudulently bidding on a $60 million electrical expansion project in Liberia. The debarment renders Dongfang, a state-owned enterprise specializing in manufacturing and installing electrical equipment in connection with energy and infrastructure projects, ineligible to participate in any projects financed by the World Bank. Dongfang’s debarment by the World Bank highlights the compliance risks contractors and subcontractors face when pursuing contracts associated with foreign projects financed by institutions such as the World Bank.According to the settlement, Dongfang engaged in bidding for the Liberia Accelerated Electricity Expansion Project, intended to increase stability throughout Liberia’s electricity sector and connect approximately 46,000 additional households and businesses to Liberia’s electrical grid. Dongfang allegedly falsified two letters during the process, claiming that an equipment manufacturer had authorized Dongfang to supply and install certain electrical equipment.

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