A Kenya registered civil engineering company Global Interjapan (Kenya) Limited has been slapped with a 36-month debarment by the African Development Bank Group o for involvement in fraud.
The announcement by the African bank means Global Interjapan will be on the dishonourable league of more than 2,297 companies and at least 1046 individuals in Africa that have been sanctioned for integrity violations related to corruption, fraud, coercion, collusion, abuse, conflict of interest or obstructive conduct.
The debarment, which has been backdated to August 24 last year follow investigations by AfDB that unearthed massive financial fiddling that involved a during a tender for the bank-financed Small-Scale Irrigation and Value Addition Project in Kenya. The bank’s statement did not make clear the nature and extent of financial integrity violations.
Wile there is a provision to appeal, the statement released by the bank on February 16 did not say whether there is an option for the blacklisted firm to appeal.
Consequently, the bank says in a statement, “The debarment renders Global Interjapan (Kenya) Limited and its affiliates ineligible to participate in bank group-financed projects during the debarment period.”
The sanctioning of Global Interjapan Limited for fraud is likely to have far-reaching ramifications as the debarment qualifies for cross-debarment by other multilateral development banks.
Under the Agreement for Mutual Enforcement of Debarment Decisions, the Kenyan firm risks further action of unknown financial implications and periods by the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.
At the expiry of the debarment period, Global Interjapan (Kenya) Limited will only be eligible to participate in AfDB-financed projects on condition it implements an integrity compliance programme consistent with the financing guidelines of the bank, the statement says.
The Small-Scale Irrigation and Value Addition Project that were aimed at reducing poverty by enhancing agricultural productivity, income and food security for residents of 11 counties in Kenya that was co-funded by the African Development. AFDB is an affiliate of the African Development Bank Group.
According to a list on AfDB website, there were 2,297 firms and 1,046 individuals that that been declared ineligible to participate in activities financed by the continental bank. A further 659 companies and 607 individuals have been sanctioned (suspended over a period of time) from getting involved in activities funded by the bank.
According to AfDB regulations, a debarred entity is ineligible to take part in its activities, and the provision extends to both employees and directors of the backlisted company.
In addition, individuals debarred by the bank cannot precipitate in the activities funded by the bank as individuals or through nomination by an ineligible firm “unless they have completely disassociated themselves with an ineligible firm.”
- A Tell report