On May 29, 2015, the World Bank announced the debarment of four subsidiaries of China Gezhouba Group Co. Ltd. (China Gezhouba Group) in connection with misconduct involving three World Bank-funded projects in the People’s Republic of China. China Gezhouba Group operates as a general construction contractor of various projects primarily in China.
The World Bank announced an 18-month debarment for Gezhouba No. 1 Engineering Co. Ltd., Gezhouba No. 5 Engineering Co. Ltd., and Gezhouba No. 6 Engineering Co. Ltd. and their affiliates. In addition, the World Bank debarred China Gezhouba Three Gorges Engineering Co. Ltd. and its affiliates for six months. The parent company, China Gezhouba Group, received a Letter of Reprimand from the World Bank, which is valid for six months, but which will not prevent the parent company from participating in World Bank-funded projects.
In its announcement, the World Bank noted the level of cooperation by the company in connection with the investigation and the proactive nature of the company’s efforts to put in place remedial measures to ensure that the misconduct does not reoccur. Under the terms of the settlement, the affected subsidiaries must implement a corporate compliance program consistent with the World Bank Group Integrity Compliance Guidelines.
Pursuant to the Agreement of Mutual Recognition of Debarments—entered into on April 9, 2010 by the World Bank Group, African Development Bank Group, Asian Development Bank, European Bank for Reconstruction and Development and Inter-American Development Bank—the debarred affiliates qualify for cross-debarment by the other Multilateral Development Banks that participated in the Agreement.