World Bank has banned a Chinese firm for falsifying power contract in Ghana, Burkina Faso

The World Bank has banned Chinese company, Sieyuan Electric Co. Ltd for 15 months after it emerged that the company falsified its contract in a Bank-funded in 2018.

The sanction was announced on Tuesday (May 14, 2019). This is in connection with fraudulent practices under the Inter-Zonal Transmission Hub Project, which was part of the Western Africa Power Pool (WAPP) Programme.

The facts of the case indicate that Seiyuan falsified its past contract experience to meet the requirements of a contract under the project, which is a fraudulent practice.

The settlement agreement provides for a reduced period of sanction in light of the company’s cooperation and voluntary remedial actions.

To be released from the sanction under the terms of the settlement agreement, the company has made a commitment to continue to fully cooperate with the World Bank Group Integrity Vice President.

The debarment of Sieyuan qualifies for cross-debarment by other multilateral development banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.

The ban means that Sieyuan and its affiliates are ineligible to participate in World Bank-financed projects for the stated amount of time.

The Shanghai-based Sieyuan Electric Co., Ltd, (Sieyuan), specialises in research and development relating to electricity power technology.

It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices, the World Bank explained in a statement.

The $111 million projects, which closed in 2018, was partly funded by a financing agreement with Ghana and was designed to improve the security and reduce the cost of the electricity supply to Burkina Faso while also increasing Ghana’s capacity to export electricity.

It was part of a program designed to establish a power-pooling mechanism to increase the affordability and reliability of electricity for citizens of the Economic Community of West African States (ECOWAS).

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