China's LEEEC debarred by World Bank over Zambian power project fraud

The World Bank has announced the 20-month debarment of China-based Liaoning-EFACEC Electrical Equipment Company Limited (LEEEC) in connection with fraudulent practices as part of the Lusaka Transmission and Distribution Rehabilitation Project in Zambia.

The project was designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka. LEEEC failed to disclose a conflict of interest and misrepresented its past contract experience to meet the requirements of a contract under the project, the World Bank said.

The debarment is part of a settlement agreement under which the company, which provides design, manufacturing, and maintenance services for electrical equipment, acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified corporate compliance conditions as a condition for release from debarment.