AfDB blacklists multimillion Kenyan construction firm over fraud

AfDB blacklists multimillion Kenyan IT firm over fraud

The African Development Bank Group has blacklisted Sino-Kenya Engineering Group Company for a three-year period over fraudulence.

The multilateral lender also blacklisted the company’s Managing Director Mr. Yuehua Bai.

“An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Sino-Kenya Engineering Group Company Limited and Mr. Yuehua Bai engaged in fraudulent practices during a tender for the design and build works for Nandi Hills Water Supply and Sanitation Project under the Kenya Towns Sustainable Water Supply and Sanitation Programme,” said AfDB in a statement.

Their debarment took effect on August 19, 2021.

Consequences of debarment mean that for 36 months, the company During the debarment period the company and its affiliates as well as Mr. Yuehua Bai will be ineligible to participate in Bank Group-financed projects.

AfDB also said that 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.

Other lenders the firm will not be able to transact with are the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.

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At the expiry of the debarment period, Sino-Kenya Engineering Group Company Limited will only be eligible to resume participation in African Development Bank Group-financed projects after implementing an integrity compliance program consistent with the Bank’s guidelines; and in the case of Mr. Yuehua Bai, after completing an accredited business integrity training.

Sino-Kenya Engineering Group Company Limited is a limited liability company registered under the laws of the Republic of Kenya.

It was contracted to deal with Kenya Towns Sustainable Water Supply and Sanitation Programme, a firm aimed at improving access, quality, availability and sustainability of water supply in 19 towns and wastewater management services in 17 towns in Kenya.

The Project is co-financed by the African Development Fund, an entity of the African Development Bank Group, and the Government of Kenya.

This is the second Kenyan based multimillion firm that AfDB has blacklisted in a month.

On October 8, AfDB blacklisted a Kenyan IT firm for three years for abuse of office.

According to AfDB, Express Automation Limited was involved in fraudulence acts, a company which has undertaken several multi-million shilling projects.

“The African Development Bank Group, on 7 October 2021, announces 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,” said AfDB in a statement.

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.

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.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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