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The World Bank Group has announced an 18-month debarment of China National Technical Import & Export Corporation (CNTIC), with conditional release. 

The CNTIC is a China-based state-owned enterprise that specialises in technology trade, engineering, and project contracting. 

The sanction was imposed in connection with alleged fraudulent practices that affected three World Bank-financed projects: two power transmission projects in Pakistan and Bangladesh, and a renewable energy project in the Maldives.

“These projects aimed to strengthen power transmission systems and energy sector capacity by improving grid reliability, expanding transmission infrastructure, and supporting renewable energy integration,” the World Bank said. “Under the facts of the case, CNTIC failed to disclose current contract commitments and pending or historic litigation in bids for contracts under the projects”. 

The Bank also alleges that the company failed to disclose intended commissions or fees to third parties and misrepresented key personnel under the project in Pakistan. 

“These were fraudulent practices under the World Bank’s Anti-Corruption Framework,” the World said in a statement.

The debarment makes CNTIC and any firms or individuals it controls ineligible to participate in projects and operations financed by institutions of the World Bank Group. The debarment is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices and agrees to meet specified conditions for release from sanction.

According to the World Bank, the settlement agreement provides for a reduced period of debarment due to the company’s cooperation and voluntary remedial actions. 

As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing and implementing an integrity compliance programme that reflects the principles set out in the World Bank Group Integrity Compliance Guidelines. The CNTIC also commits to continue to fully cooperate with the World Bank Group’s Integrity Vice Presidency.

The statement noted that the debarment of CNTIC qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed on 9 April 2010.