AfDB Ban Four Nigerian Companies Over Fraudulent Activities Involving Financial Projects

Four Nigerian companies have been added to the list of companies banned from accessing financial projects from the African Development Bank (AfDB). The companies were barred for fraudulently obtaining AfDB's financial projects after an investigation into their application process.

The barred companies are Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated and Investment Co. Limited, and Medniza Global Merchants Limited. They were involved in fraudulent activities involving the Zaria Water Supply Expansion and Sanitation project in Nigeria.

The investigation was carried out by AfDB's office of integrity and anti-corruption which is duty-bound to probe corruption allegations against companies in order to prevent, deter fraudulent activities in the process of bidding for financial projects from AfDB.

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“An investigation conducted by the bank’s office of integrity and anti-corruption established that the debarred companies engaged in fraudulent and collusive practices during a tender for the supply of water meters, automatic meters, and house connection materials, under the Zaria Water Supply Expansion and Sanitation project in Nigeria," AfDB said in a statement.

What Will Happen To The Four Companies?

In the statement from AfDB, it was disclosed that Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated and Investment Co. Limited, as well as Medniza Global Merchants Limited have all been barred from applying for AfDB's financial projects for two years.

The four companies will be denied access to other multilateral banks like AfDB due to the mutual agreement between them to forestall fraudulent activities. The banks include Asian Development Bank, World Bank, and more, “The sanction renders these companies ineligible to participate in bank-financed projects during the debarment period.

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 "Additionally, the 24-month debarment of the companies qualifies for cross-debarment by other multilateral development banks under the agreement for mutual recognition of debarment decisions, including the Asian Development Bank (ADB), the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.”

AfDB's Blacklist Is Growing

Recently, the biggest African bank has been clamping down on several companies. Last year, AfDB barred some Nigerian companies for 36 months for engaging in fraud - the list included ALG Global Concept Nigeria Limited which was blacklisted in January 2019, and in July 2019, Lutoyilex Construct Limited was included in the list.

Earlier this year, AfDB blacklisted China Zhonghao Nigeria Limited, Beulah Universal Link Resources Limited, and Bluestream Systems and Device Limited; with the three companies being barred for 18 months, 36 months and 12 months respectively.