Pursuant to a settlement agreement, the African Development Bank (AfDB) Group on June 8 debarred Scandinavian contractor Burmeister & Wain for a period of 21 months, for engaging in sanctionable practices in a power generation project financed by the AfDB in Mauritius.
The bank stated that an investigation conducted by the AfDB’s office of integrity and anticorruption had concluded that it was more likely than not that the company had engaged in fraudulent and corrupt practices in the context of the Saint Louis power plant project.
The debarment imposed by the AfDB renders Burmeister & Wain ineligible to participate in AfDB-financed projects and thus to benefit from its financing during the debarment period.
The 21-month debarment qualifies for cross-debarment by other multilateral development banks pursuant to the agreement for mutual enforcement of debarment decisions.
According to this agreement, debarments longer than 12 months pronounced by any of its signatories, including the AfDB, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group, are recognised and imposed in the same way by its other signatories.
By imposing a debarment of 21 months, the AfDB said its office of integrity and anticorruption recognises Burmeister & Wain’s extensive cooperation with the investigation, the company’s transparency in dealing with the sanctionable conduct and the efforts that it has made to enhance its integrity compliance programme since uncovering the sanctionable practices.