© 2019 - International Centre for Investigative Reporting
AFDB debars Chinese company for fraudulent practices
THE African Development Bank Group (AFDB) has debarred China Zhonghao Nigeria Limited, a civil engineering company registered in Nigeria, for fraudulent practices.
AFDB announced on its official website that the Chinese company which has been registered in Nigeria for 18 months has been charged for fraudulent practices which may affect the company fortunes with other multilateral development banks.
The infraction includes 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.
According to the bank, an investigation conducted by the bank’s Office of Integrity and Anti-Corruption established that China Zhonghao Nigeria Limited, as a member of a joint venture with Oceanic Construction and Engineering Nigeria Limited was jointly responsible for this joint venture partner’s fraud.
The debarment renders China Zhonghao Nigeria Limited and its affiliates ineligible to participate in bank-financed projects during the debarment period.
The offence 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 the condition that it implements an integrity compliance program consistent with the Bank’s guidelines.