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Engineering / Construction
Beijing, China
Nationality of Foreign Officials: Uganda
Summary of Allegations:
On 22 March 2013, the Inspector General of Government ("IGG") of Uganda, Irene Mulyagonja Kakooza, released a report regarding allegations of corruption and bribery in the bidding process for the Karuma Hydropower Project. According to a complaint, CWE "presented falsehoods in its bid documents which were known to the procurement committee but it had turned a blind eye to the falsehoods because members of the committee had been facilitated (bribed) by CWE." The alleged falsehoods involved significant discrepancies in the representations CWE made regarding previous projects it had built in other countries.
Although she found other significant problems with the bid and ultimately recommended that the entire process be initiated again, Inspector General Mulyagonja said that "[n]o evidence was found to support the allegations of bribery in the course of the investigation." The Independent, a Ugandan newspaper, reported on 26 April 2013 that a police investigation of the allegations came to the same conclusion.
Despite this finding, The Independent reported on 26 April 2013 that "reliable information" purported that one of the bidders for the Karuma Project paid Ugandan energy officials USD 4 million each upfront and promised to pay the officials USD 52 million at a later time. It is unclear from this article whether this bidder was CWE or another company.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Overlooking falsehoods and discrepancies in CWE's proposal for the Karuma Hydropower Project
Agencies: Uganda: Inspectorate of Government
Results: No Action
Year Resolved: 2013
Compliance Monitor:
Ongoing: No
Details:
Investigations by the IGG and police did not find any evidence to support the allegations.
Investigations into allegations of bribery do not necessarily result in formal enforcement actions.