Nigerian Firm, Chinese Partner, 69 Others Blacklisted By World Bank, AfDB

By Bassey Udo

A Nigerian contracting firm, Oceanic Construction and Engineering Nigeria Limited, is among 71 companies and individuals listed in the latest 2020 list of companies debarred by the World Bank and the African Development Bank (AfDB) for various infractions of their regulations.

The company was indicted for lying about its corporate registration, including its year of incorporation, value of its reference contracts, and experience of its key personnel while applying for a contract awarded to it in a joint venture operated with a Chinese affiliate, China Zhonghao Nigeria Limited.

The alleged fraudulent misrepresentation of facts were uncovered in two bids submitted by the Nigerian-Chinese joint venture under the African Development Bank (AfDB)-financed Urban Water Supply and Sanitation Improvement Project in Nigeria.

Details of the indictment are contained in the latest debarment list, an annual publication by the World Bank and AfDB featuring names of companies and individuals barred or blacklisted from doing business with them over a period as sanctions for various infractions bordering on fraudulent and corrupt practices as well as other infractions, including violations of their procurement and consultancy procedures, processes and guidelines.

The latest report published on the World Bank website showed that although the Nigerian firm was found to be directly guilty of the infringement of the regulations, its Chinese counterpart in the joint venture was sanctioned because of its association in line with the regulation guiding contracts, or consultancies financed by any of the multilateral development banks (MDBs).

Consequently, Oceanic Construction & Engineering Nigeria Limited, whose business address was given as Plot 1133 Aminu Kano Crescent, Wuse 2, Abuja, was sanctioned with a cross debarment for the period between July 17, 2019 and January, 31, 2023.

The company, along with its Chinese joint venture partner, was previously blacklisted by the AfDB and the World Bank for one year and three months, between April 14, 2020 and August 13, 2021.

But, its Chinese counterpart, China Zhonghao Nigeria Limited of Plot 7 Inuwa Abdul Kadir Road, Kaduna was blacklisted for the period between May 7, 2020 and October 13, 2021.

During the period of their cross debarment, none of the companies would be eligible to be awarded any contract, or consultancy financed by any of the multilateral development banks (MDBs).

Under the Joint International Financial Institution Anti-Corruption Task Force agreement against corrupt practices, where one firm or individual is debarred by one institution for some misconduct bordering on fraud or corruption, other MDBs must also enforce the sanctions

The affiliating Banks include the AfDB, the Asian Development Bank (AsDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the International Monetary Fund (IMF), the Inter-American Development Bank (IADB), and the World Bank Group (WBG).

Although the World Bank says cross-debarment is not a punishment, it is "an institutional decision not to engage in business (via member countries) with a firm found to have engaged in fraudulent or corrupt behaviour", or has a dealings with another company involved in corruption.

AfDB list

The Nigerian civil engineering company and its Chinese counterpart are among 32 companies and individuals published by the AfDB on its website for their involvement in various infractions in contracts finance by the Banks.

Out of the 32 defaulters published by the AfDB, 23 are contracting firms and consultancies and nine individuals involved in various businesses in Nigeria. The affected individuals include Abuharaira Labaran Gero, Bamidele Obiniyi (also known as Bamidele Abayomi), Efe Michael Udumebraye, Henry Chinedu Ojoko, Iyke Ambrose, Mayor Ejiro Hasting, Patrick Alozie Onwuka, Robinson Ekenedilichukwu Ojoko, and Ugochukwu Ezeh.

Two of the individuals were debarred by the AfDB, while seven others were serving cross debarment imposed by the World Bank. Also, ten of the 23 firms were debarred by the AfDB, with 13 making the list as a result of their cross-debarment by the World Bank.

World Bank list

Also, the two companies appeared among the 39 companies and individuals published by the World Bank on its website. Five of the affected companies and individuals were cross-debarred by the AfDB.

The World Bank publication showed that of the names of companies and individuals published on its website, nine were fresh sanctions handed down between February 3 and July 23 this year, while the rest were ongoing penalties against the affected companies and individuals since February 11, 2000.

Six of them have been blacklisted permanently, namely Karitex Limited, Gurpreet Singh Malik, Kamal Sharda, Sharda Impex (U.K.) Limited, Shereena Agriculture Limited and Vikram Deepak Gursahaney.

Infractions

Those accused of committing fraud and corruption, were said to have violated Paragraph 1.16a (ii) and (iii) of the Guidelines for the procurement of goods, works, and non-consulting services under the World Bank credit and grants agencies, namely the International Bank for Reconstruction and Development (IBRD) loans and International Development Agency (IDA) by borrowers.

Under the bank's policy, borrowers (including beneficiaries of bank loans), bidders, suppliers, contractors and their agents, subcontractors, sub-consultants, service providers or suppliers, and other personnel are required to observe the highest standard of ethics during the procurement and execution of Bank-financed contracts.

The bank defines corrupt practice as the act of "offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party," while fraudulent practice is "any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation."

The other offence is the collusive practice of "an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party.

Also, the charge of fraud and corruption involving violations as spelt in Section 1.23 and Consultant Guidelines, 1.22(a)(i) of the guidelines for the selection and employment of consultants under IBRD loans and IDA credits and grants by World Bank borrowers.

Under the policy, the bank requires borrowers (including beneficiaries of its loans), consultants, and their agents, sub-contractors, sub-consultants, service providers or suppliers, and other personnel to observe the highest standard of ethics during the selection and execution of Bank-financed contracts.

The debarred companies and individuals may be released from being ineligible for consideration for World Bank contracts if they demonstrate to the Bank Group's Integrity Compliance Officer that they have complied with the conditions that resulted in their sanctions and have taken appropriate remedial measures to address them.

This article originally appeared on Premium Times

Photo: World Bank