Chinese Firm LEEEC Suspended in Zambia for Fraud Related Activity

The World Bank has banned a China based electrical company, Liaoning-EFACEC Electrical Equipment Company Limited or LEEEC from taking part in a project sponsored by the lender in Zambia for 20 months. The punishment is because the firm is involved in some fraud related practices on a project in Zambia.

 

Source : LEEEC Headquarters Building.

According to the World Bank, the suspension or debarment typically run for three years, but it says this case it shortened the period to 20 months because the company was cooperating and had agreed to develop an “integrity compliance program” consistent with World Bank guidelines.

The suspension is part of a settlement agreement under which the company acknowledges responsibility for failing to disclose a conflict of interest and other infringements according to the banks guidelines. 

The case involves the Lusaka Transmission and Distribution Rehabilitation Project in Zambia, which has been designed to increase the capacity and improve the reliability of the electricity transmission and distribution system in Lusaka, the capital.

World Bank spokesman adds that the Lusaka contract is the only major contract awarded to LEEEC.