African Development Bank announces debarment of Nigerian company for fraud
- A Nigerian firm has been debarred by the African Development Bank Group for a period of 18 months over fraudulent activities
- The AfDB announced the debarment of the company registered in Nigeria on Monday, April 20
- The debarment renders the company and its affiliates ineligible to participate in bank-financed projects during the period
The African Development Bank Group on Tuesday, April 14, debarred China Zhonghao Nigeria Limited, a civil engineering company for fraudulent practices.
Legit.ng gathered that the bank in a statement on Monday, April 20, announced the debarment of the firm registered in Nigeria, for 18 months.
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 bank wrote in a release on Monday, April 20 wrote: "The debarment renders China Zhonghao Nigeria Limited 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 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."
Meanwhile, Legit.ng previously reported that the president of the African Development Bank (AfDB), Dr. Akinwunmi Adesina, has dismissed allegations by a group that accused him of violating the code of conduct of the institution.
Adesina in a statement on Monday, April 6, faulted the publication of the allegation in a foreign magazine, Le Monde, by the group which described itself as concerned staff members of the bank.
The AfDB president described the group's allegations as spurious and unfounded. He said the bank had a very high reputation for good governance.
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In a related development, one of the top rating agency in the world, Fitch Ratings has downgraded Nigeria's credit rating to B from B+ while also assigning a negative outlook.
According to the international agency, the recent slump in oil prices and the pandemic shock will put pressure on Nigeria's external finances. Going further, Fitch noted that the collapse in oil revenues and the slowdown in economic activity will take a toll on the "government's already weak fiscal revenues."
"The shock will also raise government debt and interest payment-to-revenue ratios from already particularly high levels and lead to a renewed economic recession," Fitch wrote in a release on Monday, April 6.
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