Nairobi, April 1 -- The African Development Bank (AfDB) has banned a Chinese road builder, China Henan International Corporation Group (Chico), for engaging in "fraudulent activity" in a project the lender is funding in Uganda.

The ban on the Henan-based constructor will last 12 months effective March 28, a period in which Chico will not be able to participate in any new AfDB-funded projects on the continent including Kenya where it has an ongoing project.

An AfDB investigation revealed that the Chinese road builder "failed to disclose the use of a commission agent while submitting a bid in the context of a tender for the procurement of civil works for upgrading of Rukungiri-Kihihi-Ishasha/Kanungu to bituminous standard, a component of ...