AfDB Bans Chinese Firm for Fraud in Zambian Power Project
The African Development Bank Group (AfDB) has announced the 36-month debarment of Hangzhou Fuchuan Electric Equipment Co., Ltd., a Chinese construction company, after an investigation found the firm guilty of fraudulent practices in a Zambian energy project.
According to the Bank’s Office of Integrity and Anti-Corruption (PIAC), the company was found to have submitted falsified manufacturer authorisations during the tendering process for the Itezhi-Tezhi Hydropower and Transmission Line Project in Zambia.
The project involves the construction, operation, and maintenance of a hydropower plant at the Itezhi-Tezhi Dam on the Kafue River, as well as a transmission line to distribute electricity to key substations.
As a result of the sanction, Hangzhou Fuchuan Electric Equipment Co., Ltd. and its affiliates will be ineligible to participate in any AfDB-financed projects for the next three years. The company’s reinstatement will be conditional upon the successful completion of an integrity compliance programme that meets the Bank’s standards.
The Bank emphasised that the decision reflects its commitment to upholding transparency, integrity, and accountability in all its operations.
The Office of Integrity and Anti-Corruption leads efforts to prevent, detect, and investigate fraud, corruption, and other sanctionable practices in projects funded by the AfDB Group. The office also provides channels for Bank staff and the public to confidentially report misconduct in Bank-financed activities.
For more information, visit www.afdb.org/integrity-and-anti-corruption.
