AfDB debars Sino-Kenya engineering for fraudulent practices

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The headquarters of the Africa Development Bank (AfDB) as pictured in Abidjan, Ivory Coast.
The headquarters of the Africa Development Bank (AfDB) as pictured in Abidjan, Ivory Coast. PHOTO/COURTESY: Google

The African Development Bank has announced a 36-month debarment of Sino-Kenya Engineering Group Company and Yuehua Bai, its Managing Director, for fraudulent practices in Kenya.

An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Sino-Kenya Engineering Group and Mr. Yuehua Bai engaged in fraudulent practices during a tender for the design and build works for Nandi Hills Water Supply and Sanitation Project under the Kenya Towns Sustainable Water Supply and Sanitation Programme.

The Kenya Towns Sustainable Water Supply and Sanitation Programme is aimed at improving access, quality, availability and sustainability of water supply in 19 towns and wastewater management services in 17 towns in Kenya. The Project is co-financed by the African Development Fund, an entity of the AfDB, and the Government of Kenya.

During the debarment period, Sino-Kenya Engineering and its affiliates as well as Yuehua Bai will be ineligible to participate in AfDB-financed projects. Additionally, 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, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the World Bank Group.

At the expiry of the debarment period, Sino-Kenya Engineering will only be eligible to resume participation in AfDB-financed projects after implementing an integrity compliance program consistent with the Bank’s guidelines; and in the case of Yuehua Bai, after completing an accredited business integrity training.

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.

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