World Bank blacklists Chinese firms

By John Oyuke

World Bank has barred four Chinese firms from bidding for World Bank financed projects due to alleged corruption

The firms include China State Construction Corporation, China Road and Bridge Corporation (CRBC) and two other Chinese construction companies.The companies will not be allowed to bid for its financed projects for five to eight years.The companies were among seven firms and one individual barred for ‘engaging in collusive practices under a major Bank-financed roads project in the Philippines’, the Bank said in a press statement.

Swift action

The project, Philippines National Roads Improvement and Management Programme, was partly financed by a $150 million loan from the World Bank.

WB said investigation by officials from the World Bank Integrity Vice-Presidency and external legal experts revealed the companies had colluded to enter non-competitive, artificially high bid prices.

It said as a result of swift action when the project team raised suspicions of collusion in the bidding process, it stopped an estimated $33 million from being disbursed to the now-sanctioned firms.

CRBC is the overseas arm of state-owned giant China Communications Construction Company Ltd, which is ranked 426 in the Fortune 500.

The company has undertaken more than 600 overseas projects and has branches in about 50 countries.

The other Chinese companies barred are China Wuyi Co Ltd, barred for six years, and China Geo-Engineering Corp, which was barred for five years.

A Philippine company, E.C. De Luna Construction Corp and its owner Eduardo le Luna were permanently barred from bidding for World Bank projects.

 

 

 

 

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