Finance

AfDB blacklists five Nigerian firms over diversion, others

The African Development Bank, AfDB, says it has approved a 70 million dollar loan for a road project in Ebonyi. The bank said on its website on Friday that it would provide $40 million, while its co-financier, the Africa Growing Together Fund (AGTF), would contribute $30 million for the project.

The African Development Bank (AfDB) Group has debarred five Nigerian firms for diverting funds to other uses, among others.

The latest debarring of Nigerian firms was done by AfDB in July 2020, a routine update on its website showed.

The firms are Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated and Investment Co. Limited, and Medniza Global Merchants Limited.

They will not be unbarred until July 2022.

The fifth firm is Swansea Tools Resources, debarred in July and won’t be free until May 2023.

AfDB, on its website, said firms or individuals that divert funds to other uses through fraud, corruption and associated harmful practices, could be sanctioned through its fiduciary duty.

“These individuals and firms are therefore considered ineligible to participate in contracts financed or administered by the African Development Bank Group for the stipulated periods,” it stated on the database of the sanction posted on its website.

According to statistics of the data obtained by newsmen from the website, AfDB Group had debarred 36 firms and individuals since 2011 with some of them not being allowed to transact with the bank until at least 2021 and at most 2026.

The 36 Nigerian firms and Nigerians were part of the 1,084 affected firms and individuals the bank had barred worldwide.

The breakdown shows that the bank had debarred two individuals and seven firms earlier this year.

With five recorded in July 2020, the affected firms and individuals totaled 14, being the highest so far.

It had debarred 12 individuals and firms in 2019; two firms and two individuals were affected in 2018 while one firm and one individual were affected in 2017.

The bank said it set up its Integrity and Anti-Corruption Department (IACD) to monitor the utilization of funds, and tackle fraudulent signs.

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