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Bombardier facing possible World Bank ban over corruption allegations

Source: Xinhua| 2019-05-11 02:22:55|Editor: yan
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OTTAWA, May 10 (Xinhua) -- Canada's Bombardier Inc. is facing a possible ban from World Bank-financed projects after it received a show-cause letter on a rail equipment deal plagued by corruption allegations, according to CTV Friday.

The letter is the latest development in an ongoing investigation into a contract of roughly 340 million Canadian dollars (about 253 million U.S. dollars) awarded to a Bombardier-led consortium in 2013 to supply signalling equipment for a 500-kilometer section of a rail corridor connecting Asia and Europe via Azerbaijan.

A show-cause letter, which came from the bank's Integrity Vice Presidency, typically requires a company or individual to make their case as to why disciplinary action should not be taken after alleged wrongdoing.

Bombardier said it disagrees with the allegations in the letter, which include accusations the company engaged in delaying practices or obstructive behavior regarding the audit.

It also said the conclusions represent preliminary findings rather than formal accusations.

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