The African Development Bank (AfDB) has taken decisive steps to address fraudulent and unethical practices by initiating sanction proceedings against multiple companies implicated in misconduct.
Over the years, the bank has rendered numerous firms ineligible to participate in contracts funded by the AfDB. In a statement, the AfDB emphasised its commitment to safeguarding its operations, asserting that it has “an ethical and legal responsibility to ensure funds are utilised for their intended purposes.”
Between 2023 and 2024, the AfDB sanctioned 12 African firms for breaches involving fraud, corruption, and governance failures in projects financed by the bank. These sanctions, which typically span 12 to 36 months, aim to uphold the principles of integrity and accountability within the bank’s operations.
The AfDB noted, “Where firms or individuals divert these funds to other uses through fraud, corruption and associated harmful practices (defined as ‘Sanctionable Practices’), the Bank Group exercises this fiduciary duty by sanctioning these entities through an administrative process.”
Most of the sanctioned companies were found guilty of unethical conduct in procurement, project implementation, and governance practices. These measures reflect the AfDB’s ongoing effort to deter corrupt practices and ensure compliance with its stringent ethical and legal standards.
As part of its broader efforts, the AfDB launched a six-month campaign last year to promote its updated Whistleblowing Policy, approved in January 2023. Paula Santos-Da Costa, Director of the Office of Integrity and Anti-Corruption, noted that the campaign involved “setting up information desks, distributing educational materials, and providing fact sheets and FAQs.” This initiative aims to foster greater awareness and encourage accountability.
The AfDB reiterated that it imposes sanctions on entities involved in coercive, collusive, corrupt, fraudulent, or obstructive practices. Such actions underline the bank’s steadfast commitment to ensuring that development funds are channelled exclusively towards their intended purposes.
Source:
www.pulse.com.gh
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