Development bank debars another contractor over fraud allegations

Image: African Development Bank

The Bank said that Malawi-based firm J&J Construction Company would also have to pay restitution to the government of Malawi.

J&J Construction Company held a contact to build warehouses in the Southern Region districts of Mulanje, Thyolo and Zombo, under the Competitiveness and Job Creation Project, financed by the bank.

An investigation conducted by the Office of Integrity and Anti-Corruption of the Bank found that the company submitted a forged payment guarantee and a forged performance bond. It said this misled the Ministry of Industry and Trade of Malawi, allowing the company to receive a contract advance payment.

During the debarment period, J&J Construction Company and its affiliates will not be eligible to participate in African Development Bank Group-financed activities.

Once the debarment period has expired, the company will only be eligible to resume participation in African Development Bank Group-financed activities after providing evidence of full payment of restitution to the Government of Malawi for the value of the forged performance bond and completion of an integrity compliance programme that meets the African Development Bank Group’s standards.