According to reports the African Development Bank (AfDB) Group has banned CP Power East Africa Limited along with the part owner of the company; Dawit Wondwossen from its projects after it was discovered that it had been involved in fraudulent practices in Uganda and Kenya.
The ban on CP Power East Africa Limited which is based in Kenya, will go on for a period of 48 months.
The African Development Bank (AfDB) Group made it known through a statement that, “An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that CP Power East Africa Limited, and Mr Dawit Wondwossen, engaged in fraudulent practices in the context of two separate tenders,” the Pan African financier said in a statement.
The Pan African bank added that, “… namely, a tender for the procurement of plant design, supply and installation of medium voltage networks and last mile-connections under the Uganda Rural Electricity Access Project; and a tender for the procurement of supply and extension of low voltage single phase lines and services cables under the Last Mile Connectivity Project – Phase II in Kenya.”
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The plan by the Kenya Power and Lighting Company (KPLC) to subsidize the connection of homes in Kenya to the national electricity grid, is channeled towards further extending the low voltage system throughout Kenya in order to ensure that the counties with lower electricity penetration will benefit the most.
The project called The Last Mile Project’s most recent phase was expected to complete the successful connection of around 300,000 customers. This would have increased the total tally of households in the country with access to electricity to an impressive 1.5 million.
The ban on CP Power East Africa Limited by the African Development Bank (AfDB) Group essentially means that it along with all its affiliates will not be able to take part in any projects financed by the African Development Bank (AfDB) Group during the four (4) year period of the ban.
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The African Development Bank (AfDB) Group also added that under the Agreement for Mutual Enforcement of Debarment Decisions the ban, is also eligible for cross-debarment by the other multilateral development banks. These include the Inter-American Development Bank, the Asian Development Bank, World Bank Group, and the European Bank for Reconstruction and Development.
Over the years international finance institutions most of whom are financed and most times owned by governments, have been really looking to stop corruption in projects that they finance. Many of said projects, costs several billions of United States dollars every year.
CP Power East Africa Limited has now joined the list of companies in Kenya that have been banned by international institutions due to business practices that were unethical.
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Around 2 companies based in Kenya have been blacklisted by both the African Development Bank (AfDB) Group and the World Bank in a period of less than 2 years due to concerns over quality and fraud in projects being funded by the multilateral lenders.
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