AFRICA – The African Development Bank Group, on 20 November 2024, announced the conclusion of a negotiated settlement agreement with China Railway Construction Engineering Group. Pursuant to the negotiated settlement agreement, China Railway Construction Engineering Group, registered in China, will be under a conditional non-debarment for 12 months, effective 7 November 2024.
An investigation conducted by the Office of Integrity and Anti-Corruption of the African Development Bank Group established that, in the context of a tender on the Msalato International Airport Project, Phase I, in Tanzania, China Railway Construction Engineering Group failed to exercise sufficient oversight of the bidding process to ensure accurate disclosure in its bid. The investigation revealed that the information provided pertaining to its experience was inaccurate, which the company admitted constituted a fraudulent practice.
The Msalato International Airport Construction Project aims to improve the efficiency and competitiveness of Tanzania’s social and economic development efforts by providing a more efficient and effective air transport connectivity both internally and internationally and promoting trade, tourism and regional integration.
During the sanction period, China Railway Construction Engineering Group will remain eligible to participate in bank group-financed activities.
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.
At the expiry of the sanction period, China Railway Construction Engineering Group will only be eligible for release from sanction after it implements an integrity compliance program consistent with the bank’s guidelines.
The office of integrity and anti-corruption of the African Development Bank Group is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in bank group-financed operations.
