By Adedapo Adesanya
The African Development Bank Group (AfDB) has debarred China Zhonghao Nigeria Limited, a civil engineering company registered in Nigeria, for 18 months over alleged fraudulent practices.
The lender said following an investigation conducted by its Office of Integrity and Anti-Corruption, it was established that China Zhonghao Nigeria Limited, as a member of a joint venture with Oceanic Construction and Engineering Nigeria Ltd., 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 Limited and its affiliates ineligible to participate in any projects financed by the African lender 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.
This means it will not be eligible to be contracted by any projected financed by these organisationa during the period of its debarment.
According to set rules by the AfDB, at the expiry of the debarment period, the blacklisted China Zhonghao Nigeria Limited will only be eligible to participate in the bank-financed projects on condition that it implements an integrity compliance program consistent with the bank’s guidelines.
In June 2019, the bank debarred China Zhonghao Nigeria Limited affiliate, Oceanic Construction and Engineering Nigeria Limited for a period of 48 months, for related fraudulent practices.
Business Post last month reported that the bank also debarred Beulah Universal Link Resources Limited and Bluestream Systems and Device Limited, two Nigerian companies for alleged fraud.
The two local companies were detected to have misrepresented their qualification in a tender for construction and rehabilitation of water reservoirs contracts in Oyo State, Nigeria.
As a result of erring, Beulah Universal Link Resources Limited was barred 36 months while Bluestream Systems and Device Limited was sanctioned for 12 months.
