AfDB Enforces 20-Month Debarment in Power Project Fraud Case

Sanction highlights the growing role of compliance systems, audit technologies and anti-corruption enforcement in large-scale energy projects.

The African Development Bank Group (AfDB) has announced the 20-month debarment of IYA S.A.R.L., a Mali-registered construction company, following findings of fraudulent practices linked to a major cross-border electricity infrastructure project in West Africa.

The decision, issued by the Bank Group’s Office of Integrity and Anti-Corruption, relates to misconduct uncovered during the procurement process for the Guinea–Mali Electricity Interconnection Project (PIEGM) — a flagship initiative aimed at strengthening regional power integration and expanding access to reliable, affordable electricity.

Fraud Findings Trigger Enforcement Action

The investigation established that IYA S.A.R.L. engaged in a fraudulent practice during the tender process for electricity infrastructure works under the PIEGM Project. As a result, the company and its affiliates are barred from participating in all AfDB-financed activities for the duration of the debarment.

The sanction includes conditional release, requiring the company to complete a Bank-approved integrity compliance programme before eligibility can be restored.

Why This Matters for Infrastructure and Gov-Tech

The PIEGM Project plays a strategic role in:

• Reinforcing electricity trade between Guinea and Mali

• Supporting regional power system stability

• Advancing socio-economic development through improved energy access

AfDB’s action signals a clear message to contractors, investors and developers that digital procurement systems, audit trails and compliance frameworks are now central to infrastructure finance governance.

Compliance as a Gatekeeper to Capital

Under AfDB rules, IYA S.A.R.L. will only be allowed to re-enter Bank-financed projects after demonstrating satisfactory completion of an integrity compliance programme, aligned with the Bank’s guidelines.

This approach reflects a broader shift among multilateral lenders toward:

• Preventive compliance rather than post-project remediation

• Standardized integrity frameworks

• Data-driven monitoring of procurement and contractor behaviour

Call to Action: Integrity Tech Is No Longer Optional

For construction firms, infrastructure developers, procurement-tech startups and compliance solution providers, the case underscores the growing need to:

• Embed integrity and fraud-detection systems early in bidding processes

• Adopt digital compliance and audit tools aligned with multilateral bank standards

• Strengthen internal governance to maintain access to development finance

As development banks scale investments in energy, transport and climate-resilient infrastructure, early adopters of compliance-by-design models will be better positioned to compete — and to stay eligible.

A Signal to the Market

The AfDB reiterated that integrity safeguards are fundamental to ensuring that development finance delivers transparent, efficient and equitable outcomes for communities.

By enforcing sanctions and linking reinstatement to verified compliance reform, the Bank is reinforcing a rules-based financing ecosystem — one increasingly shaped by technology, data and accountability.