The World Bank (the “IBRD”) imposed a four-year disqualification sanction on an engineering company on the grounds of the latter’s misrepresentations in the implementation of an IBRD-financed energy construction project in a coastal province of China. This sanction had a significant adverse impact on the normal business operations of the company.
Acting as the compliance counsel to the company, JunHe provided the client with comprehensive legal services. This included establishing and implementing compliance management systems, implementing rectification measures, organizing compliance training and promotion activities, creating a company-wide compliance culture, and receiving visits and evaluations from the independent monitor. As a result of these efforts, a compliance management system in line with international standards was established in the company and the compliance awareness of the company’s employees was enhanced.
Firstly, JunHe prepared a large Compliance Management Manual based on the client’s business characteristics and practical needs. This manual assisted the company to establish its own whole-process compliance management system covering such fields as market development, business partnerships, financial payments, bidding and procurement, staff management, contracting, and internal control of risks. This manual was amended from time to time according to the effects of its implementation. JunHe also assisted the company in preparing a world-leading Compliance Investigation Manual with hundreds of clauses to meet the latest requirements of the IBRD and for the independent monitor of the company to improve its compliance system.
Secondly, JunHe’s team organized compliance training for the client to promote the implementation of its compliance management system. It included comprehensive compliance training for all employees, and special compliance training for high-risk posts which were tailored to the key compliance management risks in the client’s operations. Many practical cases were shared with the employees to help them better understand and comply with the compliance management system.
Thirdly, JunHe assisted and provided guidance to the client in conducting compliance risk assessments on business departments in the various head offices, subsidiaries and branches across the country. JunHe issued compliance risk assessment reports and put forward constructive suggestions to further improve the client’s compliance management. This helped the client to promptly identify compliance risks, eliminate management defects, and effectively improve its implementation of the compliance system.
During the four-year rectification period, JunHe assisted the client in cooperating in the three rounds of on-site visits by the independent monitor appointed by the IBRD to the company’s headquarters and subsidiaries, and helped the client fully demonstrate its outstanding achievements in rectification. In the notice of release from the sanction, the Integrity Vice Presidency (INT) highly praised the company for setting an example for Chinese enterprises and recommended it as a “mentor” for other similar enterprises to share its compliance experience (World Bank Group Mentoring Program).
This is another representative case in JunHe’s outstanding record concerning compliance with the requirements of multilateral development banks (MDBs). JunHe’s team has now assisted three key clients in the lifting of sanctions imposed by the IBRD in three different projects over the past six months. In this project, the team has once again successfully demonstrated its first-class professionalism, rigorous and meticulous legal services and smooth communication with MDBs, which have been widely recognized and highly praised by the MDBs and the relevant clients. This project will provide useful guidance and strong support for other ongoing MDB compliance projects undertaken by the team.