WASHINGTON, May 5, 2017 - The World Bank today announced the debarment of Zhengtai Group Co. Ltd. Also referred to in Chinese as 正太集团有限公司 together with 20 of its affiliates for a period of 15 months.
The debarment is part of a Negotiated Resolution Agreement between the World Bank Group and the Zhengtai Group Co. Ltd. following a World Bank investigation which revealed fraudulent misconduct of the company under the Anhui Xuancheng Infrastructure for Industry Relocation Project in the People’s Republic of China. Zhengtai Group Co. Ltd submitted in its bid a falsified contract agreement with a falsified construction period and inflated contract value in order to meet the requirements in the bidding process. Zhengtai Group Co, Ltd.’s bid was disqualified by the World Bank at the bid evaluation stage.
During the same week, the World Bank also entered in a Negotiated Resolution Agreement with Hunan Shaping Construction Co., Ltd. also referred to as Sunpeak Construction and in Chinese as 湖南省沙坪建设有限公司) for a period of 15 months for submitting a falsified bid guarantee letter in its bid for a bidding process under the Integrated Economic Development of Small Towns Project in the People’s Republic of China. The company was awarded the contract but withdrew its bid before contract signing.
"The outcome of these two cases would not have been successful without the commitment of the project management units who reported the allegations and undertook due diligence while fully cooperating with the World Bank investigation," said Leonard McCarthy World Bank Integrity Vice President. "This is a perfect example of how risks of fraud and corruption can be effectively and timely mitigated to ensure that projects achieve their intended objectives."
The debarment under both settlements qualifies for cross-debarment by other MDBs under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010
