Chinese contractor debarred for fraudulent practices on Ugandan roads project
02 April 2024
The African Development Bank (AfDB) has debarred a Chinese contractor for 12 months after an investigation found that it had engaged in ‘fraudulent practice’ on a roads project in Uganda.
Image: African Development Bank
China Henan International Cooperation Group Company negotiated a settlement with AfDB, putting an end to sanctions proceedings for fraudulent practice.
An investigation by the Office of Integrity and Anti-Corruption of the AfDB found that China Henan International Cooperation Group Company had failed to disclose the use of a commission agent while submitting a bid for upgrade works on the Rukungiti-Kihihi-Ishasha/Kanugu road in Uganda to bituminous standard.
The work came under the Road Sector Support Project, an AfDB initiative to improve road access to socio-economic activities and quality of transport services levels in south-western and western parts of Uganda.
The Bank said that during the debarment period, China Henan International Cooperation Group Company and specified affiliates will be ineligible to participate in Bank Group-financed activities.
At the expiry of the debarment period, China Henan will only be eligible to resume participation in African Development Bank Group-financed activities after it implements an integrity compliance program consistent with the Bank’s guidelines.
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