Giant Construction Companies in East Africa Banned by World Bank

By  |  July 13, 2019

Major construction companies in East Africa, Indian firm SAI Consulting Engineering Ltd and Universal for General Construction and Trading Company have been disqualified by the World Bank on grounds that they engaged in corrupt practices while working on projects funded by World Bank in East Africa.

According to a statement announcing the 15-month debarment,  Indian firm SAI Consulting Engineering Ltd, which had been tasked by WB to constructi and manage several border posts in Tanzania allegedly bribed Government officials to speed up invoice payments .

South Sudanese firm – Universal for General Construction and Trading Company is also on the spot for using a fake certificate to massively inflate the value of the previous contract undertaken by the business.

It used an undisclosed agent to make a false certificate for a bid on a school construction project in Uganda. The South Sudanese firm, has, therefore, been barred from undertaking World Bank projects for 15 months due to engaging in corruption.

“The debarment makes Universal ineligible to participate in World Bank-financed projects. It is part of a settlement agreement under which the company acknowledges responsibility for the underlying sanctionable practices,” part of the statement issued stated.

In order to take back the projects, SAI is required to meet specific corporate compliance agreements outlined in a settlement agreement

Other Multilateral Development Banks including the European Investment Bank and the African Development Bank have automatically sanctioned the two firms based on a law referred to as ‘Agreement for Mutual Enforcement of Debarment Decisions.’

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