The World Bank on Aug. 1 announced the 15-month debarment of China-based Jiangsu Zhidehuatong Information Technology in connection with fraudulent practices as part of the Hubei Xiangyang Urban Transport Project in China.

The debarment makes TRACHTECH ineligible 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 World Bank project in question is designed to safely improve mobility and accessibility within and to China’s Xiangcheng District of Xiangyang. According to the facts described in the settlement agreement, TRACHTECH falsified a certificate related to technical equipment that it hoped to supply to a bidder on a traffic-monitoring and -management contract within the project. The falsified certificate was designed to mislead procurement authorities and imply that the bidder met the project’s tender requirements. This is a fraudulent practice under World Bank procurement guidelines.

The settlement agreement provides for a reduced period of debarment in light of the company’s cooperation and voluntary remedial actions. The debarment of TRACHTECH qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed in April 2010.