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FEATURE STORY June 12, 2019

World Bank Debars Guizhou Zhonghang South Machinery Construction Co., Ltd. (Sanctions Case No. 599 – China)

On June 12, 2019, the World Bank’s Chief Suspension and Debarment Officer (the “SDO”) imposed a three-year debarment with conditional release on Guizhou Zhonghang South Machinery Construction Co., Ltd. (“Guizhou Zhonghang”) pursuant to a Notice of Uncontested Sanctions Proceedings in Sanctions Case No. 599    

The specific accusation made by the Integrity Vice Presidency in the case was that Guizhou Zhonghang engaged in a fraudulent practice by misrepresenting facts to attempt to meet the relevant prior experience requirements in its bids for two construction contracts under the Chongqing Small Towns Water Environment Management Project in the People’s Republic of China.

Guizhou Zhonghang did not submit an Explanation to the SDO in accordance with the Bank Procedure: Sanctions Proceedings and Settlements in Bank Financed Projects (the “Sanctions Procedures”).

Guizhou Zhonghang also did not submit a Response to the World Bank Group Sanctions Board within the period specified in the Sanctions Procedures.  Accordingly, the sanction recommended by the SDO is deemed uncontested and has entered into force as of June 12, 2019.