The African Development Bank (AfDB) has blacklisted Sinotec, a Chinese power transmission and distribution equipment firm that has undertaken several multi-billion projects in Kenya over fraud.
This is after an investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Sinotec misrepresented its experience, the value and dates of its reference contracts and its relationship with other bidders while participating in three Bank-financed tenders.
These include the Regional Rusumo Falls Hydropower Project in Rwanda, the Uganda Rural Electricity Access Project and the Last Mile Connectivity Project that links Kenyan homes to the national grid under a subsidised President Uhuru Kenyatta’s government programme meant to speed up electrification.
Pursuant to a decision by the Bank’s Sanctions Appeals Board, the company will be debarred for a period of 36 months for engaging in fraudulent practices.
During the three years which Sinotec will be debarred, the firm will be ineligible to be awarded contracts funded by the AfDB or be a subcontractor, consultant, supplier, or service provider of an eligible firm.
Sinotec had been contracted by Kenya Power to design, supply and install 3,000km low-voltage single-phase lines and supply cables in Kisumu, Western Kenya and Mount Kenya regions.
Kenya Power was in the spotlight after awarding the tender after local contractors accused the monopoly of denying them tenders in the Last Mile Connectivity projects in favour of foreign companies.
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