AfDB blacklists Nigeria-based Chinese firm for fraudulent practices

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NIGERIA – The African Development Bank Group (AfDB) has debarred China Zhonghao Nigeria Limited, a civil engineering company for 18 months for fraudulent practices in bidding.  

An investigation conducted by the Bank’s office of integrity and anti-corruption revealed that China Zhonghao Nigeria Limited was also responsible for its joint venture partner’s fraudulent misrepresentations.  

These misrepresentations include its year of incorporation, the value of reference contracts, and experience of key personnel, while bidding for two tenders under the Bank-financed Urban Water Supply and Sanitation Improvement Project in Nigeria.  

The Urban Water Supply and Sanitation Improvement Project is financed under the African Development Fund, an entity of the African Development Bank Group and aimed at enhancing access to safe water supply services in the Nigerian states of Oyo and Taraba through, among other components, extension and rehabilitation works on the water transmission and distribution network. 

“The debarment renders China Zhonghao Nigeria Limited and its affiliates ineligible to participate in Bank-financed projects during the debarment period,” the bank wrote in a release. 

“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 Limited will only be eligible to participate in Bank-financed projects on condition that it implements an integrity compliance program consistent with the Bank’s guidelines. 

China Zhonghao Nigeria had partnered with Oceanic Construction and Engineering Nigeria to bid for two tenders under the AfDB-financed Urban Water Supply and Sanitation Improvement Project in Nigeria in 2019. 

Late 2019, China Zhonghao Nigeria Ltd was mandated to execute Gombi and Garkida water system rehabilitation and upgrading. 

In June last year, AfDB blacklisted Oceania for 48 months for fraudulently misrepresenting its year of incorporation, the value of its reference contracts, and the experience of its key personnel. 

After the period, China Zhonghao can participate in Bank-financed projects only if it implements an integrity compliance programme.  

The Office of Integrity and Anti-Corruption of the African Development Bank Group is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in Bank’s Group-financed operations. 

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