World Bank ban on CCCC is still on

09 Dec 2016 / 05:37 H.

    PETALING JAYA: A check on the World Bank’s website shows that China Communications Construction Co Ltd (CCCC) and its subsidiaries have indeed been debarred from participating in projects financed by the development institution for fraudulent practices in a Philippine project.
    Malaysia sealed a deal to build the RM55 billion East Coast Rail Link (ECRL) with CCCC in November. Work on the 600km ECRL is expected to begin early next year.
    Minister in the Prime Minister’s Department Datuk Abdul Rahman Dahlan was reported by Bernama as saying in the Dewan Negara yesterday that CCCC has never been blacklisted by the World Bank and that the blacklist involves its subsidiary China Road and Bridge Corporation (CRBC).
    A statement dated July 29, 2011 on World Bank’s website, however, clearly states that under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until Jan 12, 2017.
    The World Bank’s sanction system states that successor organisations – through purchase or reorganisation – will be subject to the same sanctions applied to the original firm, which in this case was CRBC.
    The World Bank said in its statement that CCCC is the designated successor entity to CRBC which, along with six other firms and one individual, was debarred by the World Bank for eight years, from Jan 12, 2009, following an investigation of the Philippines National Roads Improvement and Management Project by the World Bank’s Integrity Vice Presidency.
    Abdul Rahman’s response was in reply to a question from Senator Dr Mohd Nor Monutty on CCCC’s status.
    The minister reportedly said although there are concerns about the company’s (CCCC’s) image, the World Bank has not issued any restriction to any country from collaborating or dealing with CCCC.
    Bernama reported that Abdul Rahman said the government is confident the company can complete the ECRL project on time in line with the project’s scale, adding that CCCC has a good track record in large construction projects, including in Malaysia.

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