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AfDB excludes Sinotec Company Ltd for 36 months for fraudulent practices

04/05/2020
Source : Agence Ecofin
Categories: General Information

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The African Development Bank Group announced the exclusion of Sinotec Company Limited,
an energy solutions company registered in China. Pursuant to a decision of the
Appeal counsel of the Bank, the company will be excluded for a period of 36 months for having engaged in
fraudulent practices.
An investigation by the Bank's Office of Integrity and Anti< Corruption found that
Sinotec Company Limited made fraudulent statements about value and dates
its reference contracts and its relations with other tenderers. These false
statements were made during the company's participation in three tenders financed by the Bank
as part of the Rusumo hydropower project in Rwanda, the
rural uganda and the "Last Mile" connectivity project in Kenya.
During this exclusion period, Sinotec Company Limited and its subsidiaries will be ineligible for auction
of contracts financed by the Bank. In addition, this sanction may also be enforced by the
Asian Development Bank, European Bank for Reconstruction and Development,
World Bank Group and the Inter mutual application of exclusion decisions.
Upon expiry of this exclusion period, Sinotec Company Limited may again be eligible for
participate in Projects Financed by the Bank subject to the implementation of a Compliance
integrity that complies with the institution's guidelines.
The Rusumo hydropower project was financed by the African Development Fund, one
entity of the African Development Bank Group, and aimed to develop infrastructure
sustainable energy to increase electricity generation and access through construction
a hydroelectric power station, transmission lines and substations.
The rural electricity access project in Uganda was financed by the African Bank of
development. The objective of this project was to support long development strategies Ugandan government term by improving access to electricity through distribution networks
low and medium voltage and last mile connections.
The "Last Mile" connectivity project in Kenya, also funded by the Bank, aimed to ensure access
increased to electricity through the supply of distribution equipment, the construction of distribution lines
low voltage as well as capacity building activities.
About the Office of Integrity and Anti-Corruption:
The Office of Integrity and Anti< Corruption of the African Development Bank is > responsible for the prevention, deterrence and investigation of corruption, fraud and other practices
subject to sanctions in operations financed by the African Bank Group of< > development.

More information
The investigation of the Office of Integrity and Anti-Corruption of the African Development Bank
was led by Johann Benohr.

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