Inside Politics

AfDB debars Kenyan firm and director for fraudulent practices

Friday, May 21st, 2021 00:00 |
Water in abundance.

A Kenyan construction company, Mactebac Contractors Ltd and its director have been barred from bidding for African Development Bank Group (ADB) projects for three years over alleged fraudulent practices.

In a statement,  the Africa’s premier development finance institution said Mactebac Contractors Limited and its affiliates, including its director and shareholder, Joram Opala Otieno will not be ineligible to participate in Bank Group-financed projects for a period of 36 months.

Sanitation project

“An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Mactebac Contractors Ltd and Joram Opala Otieno engaged in fraudulent practices during a tender for the Construction Works for Malaba Water and Sanitation Project under the Kenya Towns Sustainable Water Supply and Sanitation Program in Kenya,” said ADB.

Mactebac Contractors Limited suffered double misfortune, as ADB’s decision disqualifies the Kenyan firm from bidding for contracts in four other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, including the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.

AfDB said at the expiry of the debarment period, Mactebac Contractors Limited will only be eligible to participate in Bank Group-financed projects on condition that it implements an integrity compliance program consistent with the bank’s guidelines, while Otieno will only be eligible on condition that he completes an accredited integrity training.

The Construction Works for Malaba Water and Sanitation Project was aimed at improving access, quality, availability and sustainability of water supply and waste water management services in order to improve quality of life and resilience against climate variability and change in Kenya. It was co-financed by the African Development Bank.

Sanctions are decisions made by the Bank Group that penalise individuals or firms for proven commission of sanctionable practices.

The Bank Group’s sanctions system is strictly of an administrative nature and made independently of the investigative process. Sanctions are applied based on the principle of proportionality and considers mitigating and aggravating factors.

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