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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 鈥渋ntegrity compliance programme鈥� consistent with the bank鈥檚 guidelines.
It comes after an investigation by the bank鈥檚 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 鈥渇ailed to exercise sufficient oversight of the bidding process to ensure accurate disclosure in its bid鈥�.
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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