World Bank debars Chinese electrical equipment firm over fraud on Zambia project

WASHINGTON (Reuters) – The World Bank on Wednesday said China-based Liaoning-EFACEC Electrical Equipment Company Limited (LEEEC) would be ineligible to participate in bank-funded projects for 20 months due to fraudulent practices in connection with a project in Zambia.

The debarment is part of a settlement under which the company acknowledged responsibility for failing to disclose a conflict of interest and other “sanctionable practices,” and agreed to carry out remedial actions, the bank said in a statement.

The case involves the Lusaka Transmission and Distribution Rehabilitation Project in Zambia, which was designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, the capital.