"AfDB bans Chinese road builder for graft in Uganda" 1 April 2024

The African Development Bank (AfDB) has debarred Chinese road builder China Henan International Corporation Group (CHICO) for engaging in “fraudulent activity” in a project the lender is funding in Uganda.

The ban on the Henan-based constructor will last 12 months effective March 28, a period in which CHICO will not be able to participate in any new AfDB-funded projects on the continent including Kenya where it has an ongoing project.

An AfDB investigation revealed that the Chinese road builder “failed to disclose the use of a commission agent while submitting a bid in the context of a tender for the procurement of civil works for upgrading of Rukungiri-Kihihi-Ishasha/Kanungu to bituminous standard, a component of the Road Sector Support Project in Uganda,” it said on Thursday...

CHICO has road projects in Kenya, Tanzania, and Uganda, funded by the AfDB, World Bank, and local governments, some of which have also been marred in various ways...

“At the expiry of the debarment period, China Henan International Cooperation Group Company Limited will only be eligible to resume participation in African Development Bank Group-financed activities after it implements an integrity compliance program consistent with the Bank’s guidelines,” the lender said.