THE World Bank Group on Thursday announced the three-year conditional non-debarment of engineering construction services company China First Metallurgical Group Co (CFMCC), in connection with a fraudulent practice under the Hubei Xiaogan Logistics Infrastructure Project in China.

CFMCC was sanctioned with conditional non-debarment, making it eligible to participate in World Bank projects and operations as long as it complies with its obligations under the settlement agreement. Otherwise, non-debarment will convert to a sanction of debarment with conditional release.

The project was designed to enhance the connectivity and efficiency of the logistics operations of the Xiaogan Logistics Park in Hubei province. When competing for a contract financed by this project, CFMCC misrepresented its proposed project manager’s work experience, which is a fraudulent practice.

The settlement agreement provides for a reduced sanction in light of the company’s voluntary disclosures, corrective actions, and restraint from bidding on World Bank Group-financed contracts, and its cooperation.

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