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Chinese contracting giant and development bank strike agreement over fraud probe
02 December 2024
A development bank has concluded a fraud probe by reaching an agreement that will allow a Chinese contractor to escape debarment provided it meets certain conditions.
Image: African Development Bank
The African Development Bank will allow China Railway Construction Engineering Group (CREC) to participate in activities it funds during a 12-month sanction period in return for implementing an “integrity compliance programme” consistent with the bank’s guidelines.
It comes after an investigation by the bank’s Office of Integrity and Anti-Corruption, which found that in the context of a tender on the Msalato International Airport Project, Phase I, in Tanzania, CREC “failed to exercise sufficient oversight of the bidding process to ensure accurate disclosure in its bid”.
The investigation revealed that the information provided by CREC pertaining to its experience was inaccurate. The company admitted this constituted a fraudulent practice.
As part of the settlement, China Railway Construction Engineering Group has agreed 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.
The 12-month sanction period starts on 7 November.
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