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FEATURE STORY July 16, 2019

World Bank Debars Shanghai Hetai Construction Engineering Co., Ltd. (Sanctions Case No. 593 – China)

On July 16, 2019, the World Bank’s Chief Suspension and Debarment Officer (the “SDO”) imposed a four-year-nine-month debarment with conditional release on Shanghai Hetai Construction Engineering Co., Ltd. (“Shanghai Hetai”) pursuant to a Notice of Uncontested Sanctions Proceedings in Sanctions Case No. 593.   

The specific accusation made by the Integrity Vice Presidency in the case was that Shanghai Hetai engaged in a fraudulent practice by misrepresenting that it had completed certain works under two subcontracts, in order to obtain a financial benefit under the China Shandong Energy Efficiency Project.

Shanghai Hetai did not submit an Explanation to the SDO in accordance with the Bank Procedure: Sanctions Proceedings and Settlements in Bank Financed Projects issued by the Bank on June 28, 2016 (the “Sanctions Procedures”). 

Shanghai Hetai 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 July 16, 2019.