The Bank announced Tuesday May 14, 2019, the 15-month debarment of the Shanghai-based company which specializes in research and development relating to electric power technology.
According to the Bank the sanction is in connection with fraudulent practices under Inter-Zonal Transmission Hub Project, which was part of the Western Africa Power Pool Program, a project valued at $111 million.
The Bank states that the project, which closed in 2018, was partly funded by a financing agreement with Ghana and was designed to improve the security and reduce the cost of the electricity supply to Burkina Faso while also increasing Ghana’s capacity to export electricity.
“It was part of a programme designed to establish a power-pooling mechanism to increase the affordability and reliability of electricity for citizens of the Economic Community of West African States (ECOWAS). According to the facts of the case, Seiyuan falsified its past contract experience to meet the requirements of a contract under the project, which is a fraudulent practice,” the Bank said.
The sanction affects Sieyuan and its affiliates and they won’t be eligible to participate in World Bank-financed projects.
“It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices,” the Bank said in a statement copied to ghanabusinessnews.com.
By Emmanuel K. Dogbevi
Copyright ©2019 by Creative Imaginations Publicity
All rights reserved. This article or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in reviews.