AfDB bars Nigerian company for fraud

The African Development Bank Group (AfDB) has barred China Zhonghao Nigeria, a civil engineering company registered in Nigeria, for 18 months from any of its projects, for fraudulent practices.

An investigation conducted by the bank’s office of integrity and anti-corruption established that China Zhonghao Nigeria, as a member of a joint venture with Oceanic Construction and Engineering Nigeria, was jointly responsible for its joint venture partner’s fraudulent misrepresentations of its year of incorporation, the value of its reference contracts and the experience of its key personnel, while bidding for two tenders under the bank-financed urban water supply and sanitation improvement project in Nigeria.

The debarment renders China Zhonghao Nigeria and its affiliates ineligible to participate in bank-financed projects during the debarment period. The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, including the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.

At the expiry of the debarment period, China Zhonghao Nigeria will only be eligible to participate in bank-financed projects on condition that it implements an integrity compliance programme consistent with the bank’s guidelines.

In June 2019, the bank debarred Oceanic Construction and Engineering Nigeria for 48 months for related fraudulent practices.

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