The World Bank bars China International Water and Electric Corporation (CWE), a wholly-owned subsidiary of China Three Gorges Corporation (CTG), from its projects for three years for misconduct in Africa and Southeast Asia. South China Morning Post reports.
The World Bank has barred the Chinese state-owned enterprise China International Water and Electric Corporation (CWE) after an internal Bank inspection into allegations of sanctionable practices involving the company in a hydropower project in Africa and a roads project in Southeast Asia, reports South China Morning Post (SCMP). The countries were not identified.
The investigation found that CWE misrepresented its experience during the procurement process in the two World Bank-funded projects.
Under an agreement with the World Bank, CWE has committed to improving its internal compliance and cooperation with the institution.
The Bank warned the action against CWE from World Bank projects renders the Chinese firm vulnerable to being barred by other multilateral development banks.
Three Gorges Corporation was itself the subject of an investigation by an internal communist party watchdog earlier this year, which uncovered nepotism, shady property deals and dodgy bidding procedures at the country’s state-owned Three Gorges Dam operator.
TGC reportedly acquired CWE in 2008 as a platform to develop its overseas business.