AfDB reprimands Mitsubishi Heavy Industries for Egypt project misrepresentation

15th March 2021

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Development finance institution the African Development Bank (AfDB) has issued a letter of reprimand to industrial engineering multinational Mitsubishi Heavy Industries for misrepresentation – a sanctionable practice under AfDB procedures.

The AfDB stated that the reprimand was issued in relation to the company's practices in securing a contract for the Abu Qir 1 300 MW steam power project, in Egypt.

"Mitsubishi Heavy Industries, as part of a consortium, submitted a bid and was awarded the contract. AfDB considers there is sufficient evidence to support a finding that it is more likely than not that Mitsubishi Heavy Industries engaged in misrepresentation in the context of Abu Qir tender and contract implementation," it said in a March 15 statement.

In the absence of any aggravating factors, AfDB decided to issue a letter of reprimand against Mitsubishi Heavy Industries in line with Section 11.2 (a) of the Sanctions Procedures of the AfDB group.

A letter of reprimand is a formal letter of censure for a respondent’s actions and notifies the respondent that subsequent violations may result in a higher penalty. A reprimand is appropriate for an isolated incident of lack of oversight, or where the respondent’s role in the sanctionable practice is minor, the AfDB Sanctions Procedures state.

The sanction decision was issued against Mitsubishi Heavy Industries on February 2, the statement said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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