African Development Bank Debars Mali Construction Firm IYA S.A.R.L. for Fraudulent Practice
The African Development Bank Group has debarred Malian construction company IYA S.A.R.L. for 20 months following an investigation that uncovered fraudulent practices in a major regional electricity infrastructure project.
The sanctions, announced by the Bank's Office of Integrity and Anti-Corruption, bar the company and its affiliates from participating in any Bank Group-financed activities during the debarment period, with eligibility for reinstatement conditional on completing an integrity compliance program.
Background and Context
The fraudulent practices were uncovered during investigations into the Guinea-Mali Electricity Interconnection Project (PIEGM), a critical infrastructure initiative designed to strengthen electrical energy exchanges between West African nations. According to the African Development Bank, the project aims to promote socio-economic development in both Guinea and Mali by improving population access to high-quality, low-cost electricity.
Key Figures and Entities
IYA S.A.R.L., registered in the Republic of Mali, was found to have committed fraudulent practices during the tender process for construction work on the PIEGM project. The investigation was conducted by the Office of Integrity and Anti-Corruption (PIAC) of the African Development Bank Group, which is responsible for preventing, deterring, and investigating allegations of corruption, fraud, and other sanctionable practices in Bank Group-financed operations.
Legal and Financial Mechanisms
Under the terms of the debarment, IYA S.A.R.L. will be ineligible to participate in any African Development Bank Group-financed activities during the 20-month sanction period. Following this period, the company may only resume participation upon demonstrating satisfactory completion of an integrity compliance program consistent with the Bank's guidelines. This conditional release mechanism is designed to ensure that sanctioned entities implement substantive reforms before being allowed to rejoin Bank-financed projects.
International Implications and Policy Response
The debarment highlights ongoing challenges in maintaining procurement integrity across large-scale international development projects. As a major infrastructure initiative connecting two West African nations, the PIEGM project's successful implementation depends on transparent procurement processes and reliable contractors. The African Development Bank's enforcement action signals continued commitment to combating corruption in development financing, though the incident raises questions about oversight mechanisms for subcontractors throughout complex regional projects.
The Bank maintains secured channels for reporting sanctionable practices, including a dedicated telephone line (+1 (770) 776-5658), email addresses (whistleblower@afdb.org and investigations@piac-afdb.org), and postal correspondence to its Office of Integrity and Anti-Corruption in Abidjan, Côte d'Ivoire.
Sources
This report draws on official statements from the African Development Bank Group's Office of Integrity and Anti-Corruption regarding the debarment of IYA S.A.R.L. and information about the Guinea-Mali Electricity Interconnection Project (PIEGM).
