The African Development Bank (AfDB) has banned a Chinese company, Weihai Construction Group, over alleged fraud in three multibillion-shilling infrastructure projects it was handling in Kenya.
The bank said an investigation conducted by its Office of Integrity and Anti-Corruption established that Weihai engaged in fraudulent practices in the Sh33 billion Kenol-Sagana-Marua highway improvement project, phase two of the Nairobi Rivers Basin Rehabilitation and Restoration Programme, and the towns sustainable water supply and sanitation programme.
“The African Development Bank Group … 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,” the lender said.
“Pursuant to the negotiated settlement agreement, Weihai Construction Group, registered in China, will be debarred for a period of 35 months, effective November 19, 2021,” it added.
During the debarment period, Weihai and its affiliates will not be eligible 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, Weihai Construction Group will be eligible to resume participation in Bank Group-financed projects, conditional on the implementation of an integrity compliance programme consistent with the bank group’s guidelines,” AfDB said. The 84-kilometre Kenol-Sagana-Marua highway project, co-financed by the Africa Growing Together Fund and the government, is aimed at upgrading the road linking Nairobi to the Mt Kenya region.
The aim of the second phase of the Nairobi Rivers Basin Rehabilitation and Restoration Programme, co-financed by the Agence Française de Développement and the government, 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 Programme, co-financed by the government and Middle Income Country Technical Assistance Fund, is to improve the access, quality, availability, and sustainability of water supply and wastewater management services in multiple towns in Kenya.
Weihai joins a long list of firms that have been punished for irregularities in Kenyan projects.
Some of the Kenyan-based companies recently banned by AfDB are Aerospace Aviation, Beta Trading Company, Global Interjapan (Kenya) Limited, Eva-Top Agencies, Madujey Global Services, Mactebac Contractors Limited, Techno Brain (Kenya) Limited and Sony Commercial Agencies.
Others are Inotec Company Limited (Kenya), Sino-Kenya Engineering Group Company Limited, Rockey Africa Limited, Reef Building Systems Limited, Ultimate Engineering Limited, Express Automation Limited, and Kenya Power contractor Chint Electric. Two individuals—Mr Yuehua Bai and Mr Joram Opala Otieno —are also on the list.
The AfDB recently revealed plans to hire quality assurance experts to enable greater transparency and oversight of its funded projects.
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