The African Development Bank has temporarily put on hold contractual engagements with China Zhonghao Nigeria Limited, a civil engineering company registered in Nigeria, for fraudulent practices.
Following an investigation by the Bank’s Office of Integrity and Anti-Corruption, it was established that China Zhonghao Nigeria Limited, a member of the joint venture with Oceanic Construction and Engineering Nigeria Limited, was jointly responsible for its joint venture partnership 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 Urban Water Supply and Sanitation Improvement Project is one of the projects financed by the bank under its Africa Development Fund, to enhance access to safe water supply in Oyo and Taraba states through extension and rehabilitation works on the water transmission and distribution network.
This temporal suspension, according to the bank, “renders China Zhonghao Nigeria Limited and its affiliates ineligible to participate in the 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 expiration of the suspension, the company will be made to go through the bank’s integrity compliance programme.