Tag: African Development Bank Group (AfDB)

  • AfDB Debars Chinese Firm Over Uganda Road Project Fraud

    AfDB Debars Chinese Firm Over Uganda Road Project Fraud

    The African Development Bank Group, on 28 March 2024, announces the conclusion of a negotiated settlement agreement with China Henan International Cooperation Group Company Limited, thus putting an end to sanctions proceedings for a fraudulent practice against China Henan International Cooperation Group Company Limited. Pursuant to the negotiated settlement agreement, China Henan International Cooperation Group Company Limited, registered in China, will be debarred for a period of 12 months, effective 28 March 2024.

    An investigation conducted by the Office of Integrity and Anti-Corruption of the African Development Bank Group, established that China Henan International Cooperation Group Company Limited engaged in a fraudulent practice when it failed to disclose the use of a commission agent while submitting a bid in the context of a tender for the procurement of civil works for upgrading of Rukungiri-Kihihi-Ishasha/Kanungu to bituminous standard, a component of the Road Sector Support Project in Uganda.

    The Road Sector Support Project is aimed at improving road access to socio-economic activities and quality of transport services levels in south-western and eastern parts of Uganda by upgrading the Rukungiri-Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha roads from gravel to bitumen standard thereby contributing to improved standard of living of the beneficiaries; supporting the tourism industry; and promoting regional integration and cross border trade with the Democratic Republic of Congo and Kenya.

    During the debarment period, China Henan International Cooperation Group Company Limited and specified affiliates will be ineligible to participate in Bank Group-financed activities.

    China Henan International Cooperation Group Company Limited will be required to cooperate with the Office of Integrity and Anti-Corruption and with law enforcement agencies and regulatory authorities of African Development Bank Member Countries in their investigative functions. At the expiry of the debarment period, China Henan International Cooperation Group Company Limited 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.

    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.

  • USD 6M Fraud Probe At Center Of AfDB Staff Assault In  Addis

    USD 6M Fraud Probe At Center Of AfDB Staff Assault In Addis

    Premier lender African Development Bank (AfDB) on Wednesday announced that it was pulling out international staff from Ethiopia, after a “serious diplomatic incident” in which its employees were attacked by security officers.

    The Abidjan-headquartered lender said existing Ethiopian staff would continue working under its employment contracts, and the Ethiopian office manned by an officer-in-charge.

    International staff will work remotely, in the meantime.

    The AfDB’s decision followed a “breach of diplomatic protocol and assault” by Ethiopian security officers on two of its international members of staff who have diplomatic immunity in capital Addis Ababa on October 31, 2023

    In addition to the assault, they were arrested and detained for hours without charge or official explanation, the Bank said in a statement.

    Security officers are accused of assaulting and detaining AfDB’s Deputy Director-General of the East Africa region and Country Manager, Abdul Kamara, and another bank staffer, John Bosco Bukenya, who was principal country programme officer.

    Prime Minister Abiy Ahmed had to intervene to have the pair freed.

    Reports say the attacks were engineered by a senior government official, who was annoyed with the nagging of the AfDB employees over accountability for some disbursed funds.

    Many aspects of the incident remain shrouded in mystery, but some details are beginning to emerge.

    One of the accounts of the incident was by a user on X – formerly Twitter – who uses the handle @neby_G:“The arrest and attack was by the security guards of the @MoF_Ethiopia after the $5.2 million of Ethiopia’s yearly contribution to the bank was never deposited to the bank, instead ended up in a bank account in Panama.

    When the Ethiopian director of @AfDB_Group made it clear that the bank still had not received the funds, he was arrested and physically attacked. When he decided to take all his foreign staff and leave the country out of safety concerns, @AbiyAhmedAli and finance minister Ahmed Shide showed up at his house to convince him to stay… He has left the country.

    An “investigation” has been opened by the @MoF_Ethiopia to find the whereabouts of the $5.2 million.”

    New information suggests that Kamara and Bukenya had been sending regular reminders to the Ethiopian Ministry of Finance to pay capital share contributions that the country pledged in 2019.

    But the ministry had been making the payments, except not to the AfDB but to an account listed in an e-mail purported to be from the bank.

    It had wired $6 million (not $5.2 million) to that account.

    It turns out, according to these claims, that the account was in Mexico, not Panama.

    The beating of Kamara and Bukenya, therefore, was not a result of an argument in the lift at the Ministry of Finance.

    It was premeditated. The two had stepped on some big people’s plates, and needed to be discouraged from pursuing the matter.

    The latest accounts also allege that the incident did not happen at the Ministry of Finance. Kamara was reportedly waylaid at his gate at dusk as he arrived home from work.

    He was roughed up, blindfolded and thrown into a car that was full of armed men.

    They drove away with him and, after about 30 minutes, dumped him in a dungeon.

    Shortly after, Bukenya, who had been subjected to similar treatment, was also brought to the dungeon.

    Bukenya was later taken home, where his captors carried out a thorough search and confiscated laptops and phones.

    Because the two AfDB employees were at some police station in Addis Ababa, there was alarm once they could not be traced.

    The beleaguered AfDB staff called Bank president Akinwumi Adesina, who called Prime Minister Abiy, and the two were freed.

    They were taken to a United Nations clinic in Addis Ababa for treatment and days later evacuated from the capital city.

    The incident gives a glimpse into Prime Minister Abiy’s fragility.

    That something like that could happen, and he could only intervene after the fact, suggests that he might not be the undisputed king of the Ethiopian hill.

  • AfDB Debars Kenyan Firm Express Automation Limited Over Fraud

    AfDB Debars Kenyan Firm Express Automation Limited Over Fraud

    The African Development Bank Group, on 7 October 2021, announced the 36-month debarment of Express Automation Limited with effect from 18 August 2021. Express Automation Limited is a limited liability company registered under the laws of the Republic of Kenya.

    An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Express Automation Limited engaged in fraudulent practices during a tender for the Technical Security Upgrade to the Bank’s Eastern Africa Regional Centre.

    During the debarment period, Express Automation Limited 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, Express Automation Limited will only be eligible to resume participation in African Development Bank Group-financed projects after it implements an integrity compliance program consistent with the Bank’s guidelines.

    The Technical Security Upgrade was aimed at upgrading the existing security system in the Bank’s Eastern Africa Regional Centre in Nairobi, Kenya.

    Express Automation said in an earlier interview its main clients are not only multinationals but also small and medium enterprises across the EAC region.

    AfDB recently banned another Kenyan firm Rockey Africa Limited and its affiliates including Aerospace Aviation, Eva-Top Agencies, Sony Commercial Agencies, Beta Trading Company, and Madujey Global Services over fraud.