The African Development Bank (AfDB) has blacklisted civil engineering company China Zhonghao Nigeria Ltd for 18 months after an investigation found fraudulent practices in bidding.
China Zhonghao Nigeria had partnered with Oceanic Construction and Engineering Nigeria to bid for two tenders under the AfDB-financed Urban Water Supply and Sanitation Improvement Project in Nigeria.
In June last year, AfDB blacklisted Oceania for 48 months for fraudulently misrepresenting its year of incorporation, the value of its reference contracts, and the experience of its key personnel.
Now, the bank has ruled that China Zhonghao Nigeria was "jointly responsible for its joint venture partner’s fraudulent misrepresentations", although its debarrment period is shorter.
China Zhonghao cannot bid for any AfDB-financed work during the period.
Other multilateral development banks such as the World Bank can also apply the penalty to the company.
After the period, China Zhonghao can participate in Bank-financed projects only if it implements an integrity compliance programme.
Image Â©GCR, illustration by Denis Carrier