Devt Projects’ Integrity: AfDB Cautions Mitsubishi Industries

The African Development Bank Group (AfDB) has issued a sanction decision against Mitsubishi Heavy Industries Limited (MHI) over alleged shoddy execution of a power project in Egypt.

The continental development finance institution’s query to the company issued on 2 February 2021, was made public today.

A news report circulated by the African Press Organisation (APO) Group on behalf of the bank, indicated the “matter arises in the context of the Abu Qir 1300 MW Steam Power Project (hereinafter referred to as the “Project”) in Egypt. On 15 January 2008, the Bank entered into a loan agreement with the Arab Republic of Egypt to finance part of the Project which had a broad objective of improving the electricity supply in Egypt. MHI, as part of a consortium, submitted a bid and was awarded the contract.

“The African Development Bank considers there is sufficient evidence to support a finding that it is more likely than not that MHI engaged in sanctionable practices (misrepresentation) in the context of Abu Qir tender and contract implementation.

“In consideration of the above and in the absence of any aggravating factor, AfDB decided to issue a Letter of Reprimand against MHI in line with Section 11.2 (a) of the Sanctions Procedures of the African Development Bank Group”, the bank added.

The Office of Integrity and Anti-Corruption of the AfDB is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in the Bank Group-financed operations.

Spread the love

Leave a Reply

Your email address will not be published.