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JunHe Assisted a Large Chinese Enterprise to be Early Released from Debarment by the ADB

2021.07.27

A large infrastructure construction company (“Company”) was found having committed fraudulent practice by misrepresenting in bidding , and thus was imposed a debarment from bidding for two years with conditional reinstatement by the Asian Development Bank (“ADB”).


Under the requirement of the ADB, the Company shall appoint an Independent Integrity and Compliance Consultant (the “Monitor") recognized by the ADB to draft reports within the sanction period, demonstrating that an Integrity Compliance Program (“ICP”) , including the rules on anti-fraud and anti-corruption, has been adequately implemented by the Company in consistence with the internationally-recognized standards. The ADB also required the Company to take remediating measures during the sanction period with regard to the misconduct discovered by the ADB as well as to the promotion of its ICP and targeted compliance trainings.


Based on its good reputation and professional expertise in the field of multilateral development banks compliance projects, the Company engaged Ms. Christine Kang and JunHe team as its counsel to provide legal services on implementing compliance management system, meeting the ADB’s conditions for reinstatement, as well as communicating with the ADB and the Monitor, etc.   


Since its engagement, JunHe team promptly communicated with the Company, the ADB and the Monitor and sorted out the key facts of the project, so as to grasp the key issues to be resolved in the compliance work of the Company and formulate targeted strategies for the Company’s compliance work for the purpose of early reinstatement. During the sanction period, JunHe team helped the Company to cooperate actively with the Monitor, reviewed hundreds of compliance documents of the Company, and assisted the Company in responding to multiple rounds of questions raised by the Monitor, so as to best demonstrate to the Monitor the comprehensive, meticulous and effective compliance achievements made by the Company during the sanction period. On the other hand, while meeting the ADB’s requirements, JunHe team also advised the Company to strike the balance between compliance management and business development, and maintain the compliance workload within reasonable range. Moreover, JunHe team provided guidance for the Company to conduct special bidding compliance audits in accordance with the special requirements of the ADB and the Monitor, which has adequately filled the gap in Company’s compliance management work and well addressed the concerns of the ADB and Monitor in this respect.


Last but not the least, JunHe team drafted an Application for Reinstatement with a large number of solid supporting exhibits on behalf of the Company, which fully elaborated the grounds for the ADB to grant reinstatement for the Company and adequately responded to all the questions and concerns from the ADB. The Application fully demonstrated the Company’s achievements in every aspect of compliance management and the efficient function of the Company's compliance management system.


In July 2021, the ADB formally notified the Company that it had met the conditions for reinstatement set by ADB and was early released from the debarment of the ADB. The early reinstatement means that the Company has resumed its eligibility to bid for projects financed by the ADB, and the Company has built strong foundation and solid guarantee for the Company’s sustainable development in line with compliance, which will profoundly promote the Company’s long-term business development.


The success of this project further demonstrates JunHe’ s in-depth grasp of the rules of different multilateral development banks including the ADB, as well as its significant experiences in applying international rules, adapting to China’s specific situations, and seamlessly combining the both into the ICP implementation. This project is another typical case showing JunHe’ s outstanding capability in handling multilateral development bank sanctions, investigations and other compliance issues and excellent legal expertise in the field of multilateral development bank compliance.


The leading partner in this case is Ms. Christine KANG.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.