African Development Bank Debars Weihai Construction Group for 35 Months for Fraudulent Practices

23 December 2021
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African Development Bank (Abidjan)
press release

The African Development Bank Group, on 23 December 2021, announces the conclusion of a negotiated settlement agreement with Weihai Construction Group, thus putting an end to sanctions proceedings for fraudulent practices raised against that company. Pursuant to the negotiated settlement agreement, Weihai Construction Group, registered in China, will be debarred for a period of 35 months, effective 19 November 2021.

An investigation conducted by the Office of Integrity and Anti-Corruption of the Bank established that Weihai Construction Group engaged in fraudulent practices in the context of the Kenol-Sagana-Marua Highway Improvement Project, the Nairobi Rivers Basin Rehabilitation and Restoration Program: Sewerage Improvement Project, Phase II, and the Towns Sustainable Water Supply and Sanitation Program, all in Kenya.

During the debarment period, Weihai Construction Group and its affiliates will be ineligible to participate in Bank Group-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, Weihai Construction Group will be eligible to resume participation in Bank Group-financed projects, conditional on the implementation of an integrity compliance program consistent with the Bank Group's guidelines.

The Kenol-Sagana-Marua Highway Improvement Project, co-financed by the Africa Growing Together Fund and the Government of Kenya, is aimed at upgrading the road linking Nairobi to the Mount Kenya region. The principal objective of the Nairobi Rivers Basin Rehabilitation and Restoration Program: Sewerage Improvement Project, Phase II, co-financed by the Agence Française de Développement and the Government of Kenya, is to improve the access, quality, availability and sustainability of wastewater services in Nairobi. Similarly, the primary focus of the Towns Sustainable Water Supply and Sanitation Program, co-financed by the Government of Kenya and through Middle Income Country Technical Assistance Fund resources, is to improve the access, quality, availability and sustainability of water supply and wastewater management services in multiple towns in Kenya.

About the Office of Integrity and Anti-Corruption

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.

For more information visit https://www.afdb.org/en/about-us/organisational-structure/integrity-and-anti-corruption/

African Development Bank staff and the general public can use secured hotlines of the Office of Integrity and Anti-Corruption to report sanctionable practices within the Bank or operations financed by the Bank Group.

Secured telephone: +1 (770) 776-5658

Secured email address: investigations@iacd-afdb.org

Mail correspondence should be marked "CONFIDENTIAL" and sent to:

African Development Bank

Office of Integrity and Anti-Corruption (PIAC)

Immeuble du Centre de commerce International d'Abidjan (CCIA)

Avenue Jean-Paul II

01 BP 1387

Abidjan 01, Côte d'Ivoire

Contact:

Media Contact:

Amba Mpoke-Bigg, Communication and External Relations Department, African Development Bank

Email: a.mpoke-bigg@afdb.org

Technical Contact:

Chimene Clarisse Comoe, Office of Integrity and Anti-Corruption (PIAC)

Email: c.comoe@afdb.org

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