The African Development Bank Group on 26^th January 2022, announced that it has debarred CP Power East Africa Limited and Mr. Dawit Wondwossen for 48 Months for fraudulent practices with effect from 4^th November 2021.

A statement released by the Bank Group stated that CP Power East Africa Limited is a limited liability company registered under the laws of the Republic of Kenya and Mr. Dawit Wondwossen is the Managing Director of CP Power East Africa Limited.

The African Development Bank (AfDB) disclosed that an investigation conducted by the Bank’s Office of Integrity and Anti-Corruption, established that CP Power East Africa Limited and Mr. Dawit Wondwossen, engaged in fraudulent practices in the context of two separate tenders.

The first was a tender for the procurement of plant design, supply and installation of medium voltage networks and last mile-connections under the Uganda Rural Electricity Access Project. The second is related to a tender for the procurement of supply and extension of low voltage single phase lines and services cables under the Last Mile Connectivity Project – Phase II in Kenya.

The debarment will have several implications on the company and its MD with regards to activities that relate to the AfDB as well as other multilateral development banks.

“During the debarment period, CP Power East Africa Limited and any affiliate as well as Mr. Dawit Wondwossen will be ineligible to participate in Bank Group-financed projects. 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”.
AfDB

CP Power to undertake integrity compliance program

At the expiry of the debarment period, CP Power East Africa Limited will only be eligible to resume participation in African Development Bank Group-financed projects after implementing an integrity compliance program consistent with the Bank’s guidelines, the African Development Bank Group highlighted in the statement.

On his part, the African Development stated that Mr. Dawit Wondwossen will be required to successfully complete business ethics training.

The Uganda Rural Electricity Access Project seeks to undertake the construction of 1,147 km of medium voltage and 808 km of low-voltage distribution networks as well as the provision of so-called last-mile connections to the grid of 58,206 rural households, 5,320 business centers and 1,474 public institutions. It is financed jointly by the African Development Bank, the European Union-Africa Infrastructure Trust Fund and the Government of Uganda.

The Last Mile Connectivity Project – Phase II in Kenya, aims to maximize the use of existing distribution transformers through the extension of the low voltage network. It is expected to reach a population of around 1.2 million. This project is financed jointly by the Bank and the Government of Kenya.

The Office of Integrity and Anti-Corruption of the African Development Bank Group is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in Bank Group-financed operations.