AfDB de­bars Chi­nese en­gi­neer­ing and con­struc­tion firm for fraud

Financial Nigeria Magazine - - Development -

The African De­vel­op­ment Bank Group (AfDB) has an­nounced de­bar­ment of Chongqing In­ter­na­tional Con­struc­tion Cor­po­ra­tion (CICO) for a min­i­mum pe­riod of twelve months. Ac­cord­ing to the state­ment by the lead­ing de­vel­op­ment fi­nance in­sti­tu­tion on the con­ti­nent, its Of­fice of In­tegrity and Anti-Cor­rup­tion es­tab­lished that the Chi­nese com­pany en­gaged in fraud­u­lent over­state­ment of the pre­vi­ous projects it had ex­e­cuted in bid­ding for AfDB-fi­nanced road project in Uganda.

In or­der to meet the pre-qual­i­fi­ca­tion re­quire­ments of the ten­ders, CICO in­flated its pur­ported ex­pe­ri­ence with sim­i­lar projects, grossly over­stat­ing both the scope and the value of con­tracts it said it had suc­cess­fully com­pleted in the past. In one case, a con­tract for a road of 4.4 kilo­me­tres was falsely pre­sented as 68 kilo­me­tres in length. In an­other in­stance, the value of a ref­er­ence con­tract was in­flated from about US$17.5 mil­lion to ap­prox­i­mately US$79 mil­lion dol­lars in or­der to meet the pre­qual­i­fi­ca­tion cri­te­ria.

AfDB said CICO shall be re­leased upon ex­piry of the de­bar­ment pe­riod, pro­vided the com­pany adopts and im­ple­ments a com­pre­hen­sive in­tegrity com­pli­ance pro­gramme that meets the stan­dards of the Bank. The AfDB fur­ther said it will ver­ify the ad­e­quacy of CICO's com­pli­ance frame­work prior to any re­lease de­ci­sion.

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