EBRD debars GE Power Sweden for six years

The EBRD has imposed a six-year term of debarment on GE Power Sweden following an investigation in cooperation with the UK’s Serious Fraud Office (SFO). The debarment means that GE Power Sweden will not be eligible to be a bank counterparty from 27 November 2019 until 26 November 2025.. 

The EBRD’s Office of the Chief Compliance Officer (OCCO) will also submit debarment of GE Power Sweden to the World Bank, the African Development Bank, the Asian Development Bank and the Inter-American Development Bank - all of which are likely to follow the EBRD action.

The action relates to a project to install flue gas desulphurisation (FGD) units at the Lithuanian Power Plant, a project financed by donor funds administered by the EBRD. The investigation found that, from as early as 2002, representatives of Alstom Power Sweden, a predecessor company to GE Power Sweden, had conspired with another Alstom entity to manipulate the technical specifications for the FGD contract in their favour by making payments to Lithuanian government officials. The EBRD’s cooperation with The UK’s SFO also led to the successful prosecution in the UK of three individuals and one entity in relation to the misconduct.