Musings From Abroad

AfDB bans Chinese road builder Chico over ‘fraudulent activity’ in Uganda

Published

1 month ago

April 3, 2024

China Henan International Corporation Group (Chico), a Chinese road builder, has been barred by the African Development Bank (AfDB) for participating in “fraudulent activity” in a project the institution is sponsoring in Uganda.

With effect from March 28, the Henan-based constructor Chico will be prohibited from participating in any new AfDB-funded projects throughout the continent, including its ongoing project in Kenya. The prohibition will remain for a full year.

In the course of submitting a bid for the procurement of civil works for upgrading of Rukungiri-Kihihi-Ishasha/Kanungu to bituminous standard, a component of the Road Sector Support Project in Uganda, the Chinese road builder “failed to disclose the use of a commission agent,” according to an AfDB investigation, the organization said.

The road project, which crosses both the eastern and southwestern regions of Uganda, is essential for “promoting regional integration and cross-border trade with the Democratic Republic of the Congo and Kenya,” according to the continental financier.

Chico has road projects supported by the World Bank, the AfDB, and local governments in Kenya, Tanzania, and Uganda; however, some of these projects have also been tarnished in different ways.

Chico withdrew from the Kisii-Isebania road project in southwest Kenya in 2022 when the African Development Bank (AfDB) sought payment of arrears totalling Ksh1.5 billion ($11.3 million).

A Kisii court filed charges against the corporation in 2019, alleging that it had fraudulently obtained soil valued at Ksh3.7 million ($27,907) from a farmer and forged lease agreements for property parcels.

Chico is building a 57-kilometre road in Tanzania that will connect the communities of Mkiwa-Itigi and Noranga in the Singida region, which is located in the country’s centre.

Recently, the African Development Bank (AfDB) has barred numerous corporations for allegedly engaging in fraudulent operations related to projects it sponsors.

Five businesses, including the Kenyan company Goldsun Investments, were barred from participating in bank-funded or associated projects last year after it was discovered that the company had committed misconduct during a tender for the dualling of the 84 km Kenol-Sagana-Marua highway in Central Kenya.

The Chinese contractor and any of its affiliates, including its executives and subsidiaries, “will not be eligible to participate in Bank Group-financed activities” after the one-year restriction ends.

“At the expiry of the debarment period, China Henan International Cooperation Group Company Limited will only be eligible to resume participation in African Development Bank Group-financed activities after it implements an integrity compliance program consistent with the Bank’s guidelines,” the lender said.

Related Topics:AFDB China Featured Uganda

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Musings From Abroad

China’s Hailiang, Shinzoom to establish vehicle battery installations in Morocco

Published

2 hours ago

May 16, 2024

Ifeoluwa Dada

Hailiang and Shinzoom, Chinese car battery makers, will establish two separate operations in Morocco as the country strives to adapt its burgeoning automotive sector to rising demand for electric vehicles, Moroccan officials announced on Tuesday.

Tanger Tech, the Moroccan northern industrial zone’s development authority, said Hailiang intends to establish a $450 million copper facility on a 30-hectare plot of land. Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode plant spanning 20 hectares, according to a statement.

In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to build a factory in Tangier to manufacture crucial component cathodes.

Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode plant in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.

Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric vehicle battery plant in the country, with a potential investment of up to $6.3 billion. Last month, Industry Minister Ryad Mezzour told Reuters that the Gotion project was moving forward, with conversations over its footprint and location.

Morocco’s strategic location on the Strait of Gibraltar, free trade agreements with important EU and US markets, and existing automotive sector cluster all attract Chinese enterprises.

In 2023, the automotive sector topped Morocco’s industrial exports with $14 billion, a 27% increase. Morocco is home to Stellantis (STLAM.MI) and Renault (RENA.PA) production factories with an annual combined capacity of 700,000 automobiles, as well as a network of local suppliers.

Musings From Abroad

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

Published

3 days ago

May 13, 2024

Ifeoluwa Dada

On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they announced a partnership between their Archewell Foundation and the non-profit Giants of Africa, which utilizes sports to empower young people.

The Duke and Duchess of Sussex are making their first visit to Nigeria, where they were welcomed by the country’s chief of defence staff. The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, where Harry participated in ball-bouncing drills and shot a hoop.

“What you guys are doing here at Giants of Africa is truly amazing,” he said. “The power of sport can change lives. It brings people together and creates community and there are no barriers, which is the most important thing.”

The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, and Harry stepped on the court for some ball-bouncing drills and to shoot a hoop.

Former Toronto Raptors star Masai Ujiri, president of Giants of Africa, wished Meghan a happy Mother’s Day and said his organization was uniting communities and uplifting young people through sport, especially. Archewell Foundation and Giants of Africa will construct a basketball court in Nigeria’s capital Abuja.

“Talk about full circle again – never did I think we would be able to be here all those years later supporting the expansion of this incredible organization,” she said.
Harry and Meghan were set to round off their Lagos trip by attending a reception for a local charity. The couple live in the United States with their two children after Harry gave up working as a member of the royal family in 2020.