The African Development Bank Group has announced a 24-month debarment of Goldsun Investments Company Ltd. with effect from 31 January 2023. Goldsun Investments Company Ltd, a limited liability company registered in the Republic of Kenya.
An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption established that Goldsun Investments Company Ltd. engaged in fraudulent practices during a tender for the dualling of the 84 km Kenol-Sagana-Marua highway, Lots 1 and 2, components of the Kenol-Sagana-Marua Highway Improvement Project.
The Kenol-Sagana-Marua Highway Improvement Project is part of the Kenyan section of the Trans-Africa Highway (Cairo to Cape) and is expected to enhance the movement of goods and services, as well as people between the counties in Central and Eastern Kenya on the one part, and the capital city, Nairobi, on the other part.
During the debarment period, Goldsun Investments Company Ltd. will be ineligible to participate in Bank Group-financed operations and activities. Additionally, the debarment qualifies for cross-debarment by 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.
At the expiration of the debarment period, Goldsun Investments Company Ltd. will only be eligible to resume participation in African Development Bank Group-financed operations and activities after it implements an integrity compliance program consistent with the Bank’s guidelines.
Integrity and Anti-Corruption
The African Development Bank Group views corruption, fraud and other sanctionable practices as highly inimical to the achievement of its mandate. In order to spur sustainable economic development and social progress on the continent, AfDB endorses a multipronged approach to combating these harmful practices. Consequently, the Office of Integrity and Anti-Corruption (PIAC) uses proactive measures including risk assessments and sensitization programmes to deter sanctionable practices and prevent their occurrence in internal corporate procurement issues and operations financed by the Bank Group.
Mandate
The Integrity and Anti-Corruption Department has the overriding mandate to carry out independent investigations into allegations of corruption, fraud and other sanctionable practices in Bank Group Financed Operations. “Bank Group Financed Operations” are internal corporate procurement issues and operations financed by the Bank Group. The Department also develops preventive measures to proactively reduce the potential for corruption, fraud, misconduct and other sanctionable practices within Bank Group Financed Operations. PIAC’s operational responsibilities further include risk assessments and employment of surveillance measures towards investigations.
PIAC was established in November 2005 and became operational in June 2006. In order to further strengthen the Bank’s anti-corruption agenda, the Board of Directors approved the restructuring of the Department on the 5th of July 2012. PIAC’s mandate is reflected in its independence, authority, access and operations provided in its terms of reference.
Strategy
Where these sanctionable practices are alleged to have been committed, PIAC’s investigative powers promote tighter adherence to the highest standards of corporate governance and integrity. This strategy is reflected in its composition. PIAC is comprised of two divisions: the Integrity and Prevention Division (PIAC.1) and the Investigations Division (PIAC.2).
PIAC does not make sanction decisions. PIAC.2 receives allegations of sanctionable practices and conducts investigations. It then forwards its report to the relevant authority under the Bank’s sanctions process. Where the allegations relate to fraud, corruption and misconduct by Bank Group staff, and involve administrative budgets and misuse of Bank resources, the report will be transmitted to the President. In other cases, the report will be made to the Sanctions Commissioner under the new framework, approved by the Board of Directors of the Bank Group on the 5th of July 2012.
How PIAC Carries Out Its Integrity Strategy:
- Proactive prevention through risk assessments, sensitization programmes, due diligence, and other activities
- Mainstreaming integrity issues into Bank Group operations and activities
- Providing technical support to regional member countries in integrity issues and enhancing accountability
- Participation in international and regional integrity initiatives
- Investigations, sanctions and other deterrence processes
Code of Conduct
The Bank has Code of Conduct for staff members and a separate Code of Conduct for Executive Directors. Their purpose is to outline basic principles of professional ethics expected from international civil servants and is intended to provide guidance to Bank personnel to avoid situations of real or apparent conflict between their private interests and their public duties. They elucidate and supplement the relevant provisions of the Agreement Establishing the Bank (“AfDB Agreement”), the Staff Rules and Regulations, and other relevant legal instruments.
The Codes of Conduct do not set out to define every possible situation that may confront Bank personnel nor are they intended to be exhaustive or all inclusive. Bank personnel are expected to use their own good judgment or seek appropriate advice form the Head of Department or Unit, or the Director of Human Resources Management.
