By Andrei Skvarsky.
The African Development Bank (AfDB) has temporarily closed any projects funded by it to China-based electrical equipment manufacturer Sieyuan Electric and one of its subsidiaries, accusing the two companies of fraud in seeking a contract in Rwanda.
Sieyuan presented false credentials in tendering for a contract under an AfDB-financed electricity access project in Rwanda and hampered an AfDB inquiry into the alleged fraud by providing fake documentation, the multilateral bank said in a statement.
Sieyuan subsidiary Jiangsu Rugao HV Electric Apparatus submitted fake certifications for equipment Sieyuan planned to use in the Rwanda project, the lender said.
A settlement between the AfDB and Sieyuan debarred the latter for 12 months and Jiangsu Rugao for 20 months.
Under the Agreement for Mutual Enforcement of Debarment Decisions, Jiangsu Rugao’s shut-out by the AfDB should formally entail its automatic debarment by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank.
The AfDB, which is headquartered in Abidjan, Ivory Coast, praised Sieyuan for “extensive cooperation” with the bank in investigating the alleged fraud.
An EmergingMarkets.me email to Sieyuan asking the Shanghai-based company for comments remained unanswered.
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