AfDB debars Sinotec Company Ltd for fraudulent practices

Africa Globe

The African Development Bank Group has announced the debarment of Sinotec Company Limited, an energy solutions company registered in China, for a period of 36 months for engaging in fraudulent practices.

The announcement, which was made on April 20, 2020, is pursuant to a decision by the bank’s Sanctions Appeals Board.

An investigation conducted by the bank’s Office of Integrity and Anti-Corruption established that Sinotec Company Limited misrepresented its experience, the value and dates of its reference contracts and its relationship with other bidders while participating in three Bank-financed tenders under the Regional Rusumo Falls Hydropower Project in Rwanda, the Uganda Rural Electricity Access Project, and the Last Mile Connectivity Project in Kenya.

The debarment renders Sinotec Company Limited and its affiliates ineligible to participate in bank-financed projects during the debarment period.

The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, including the Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and World Bank Group.

At the expiry of the debarment period, Sinotec Company Limited will only be eligible to participate in AfDB-financed projects on the condition that it implements an integrity compliance program consistent with the bank’s guidelines.

The Regional Rusumo Falls Hydropower Project was financed by the African Development Fund, a constituent entity of the African Development Bank Group, and aimed at developing sustainable energy infrastructure to increase power generation and access to electricity through the construction of a hydropower generation plant and of transmission lines and substations.

The Uganda Rural Electricity Access Project was financed by the African Development Bank. The objective of the project was to support long-term and short-term development strategies of the Government of Uganda through improving access to electricity by building medium and low voltage distribution networks and last mile connections to the grid.

The AfDB also financed the Last Mile Connectivity Project to increase electricity access through the supply of distribution material, construction of low voltage distribution lines as well as capacity building activities.

The Office of Integrity and Anti-Corruption of the African Development Bank Group is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in bank group-financed operations.

This article was originally posted on ESI Africa and was republished with permission.

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