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Fraud: Nigerian firm, Lutoyilex, barred from bidding for World Bank, AfDB contracts

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Lutoyilex Construct Limited, a construction company registered in Nigeria, has joined the list of firms debarred for fraudulent practices by the African Development Bank Group and other international bodies.

The AfDB, on Tuesday, announced the debarment of Lutoyilex Construct Limited and its Managing Director, Mr Bamidele Obiniyi (also known as Mr Bamidele Abayomi) for a period of 36 months.

An investigation conducted by the bank’s Office of Integrity and Anti-Corruption established that Lutoyilex Construct Limited engaged in fraudulent practice while bidding for a construction contract under the Agricultural Transformation Agenda Support Programme Phase One in Nigeria.

While participating in a tender for the construction of social infrastructure in Niger State of Nigeria, the company misrepresented its experience in conducting similar construction contracts.

It stated, “The debarment renders the company and its managing director ineligible to participate in bank-financed projects during the debarment period.

“The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Recognition 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.”

ATASP-1 was financed under the African Development Fund administered by the African Development Bank Group.

In June, the group announced the debarment of Qualitrends Global Solutions Nigeria Limited, a construction company registered in Nigeria, for a period of 36 months.

An investigation conducted by the bank’s office of Integrity and Anti-Corruption established that Qualitrends Global Solutions Nigeria Limited, engaged in numerous acts of fraud in bidding for a construction contract under the ATASP-1 in Nigeria.

While participating in a tender for the conduct of construction of social infrastructure in Niger State of Nigeria, the company misrepresented its experience in conducting such construction contracts and submitted a false bid security.

The debarment rendered the company ineligible to participate in bank-financed projects during the debarment period.

In January, the group announced the debarment of a Nigerian firm, ALG Global Concept Nigeria Limited, a construction company registered in Nigeria and its Managing Director, Mr Abuharaira Gero, for a period of 36 months.

The bank explained that the debarment rendered the company and its managing director ineligible to participate in bank-financed projects during the debarment period.

 

According to the AfDB, the Office of Integrity and Anti-Corruption of the African Development Bank Group is responsible for preventing, deterring and investigating allegations of corruption, fraud and other sanctionable practices in Bank Group-financed operations.

The recent investigation by the Office of Integrity and Anti-Corruption of the African Development Bank was conducted by Ms Esther Mhone and Mr Justin Maenje.

In February, the World Bank debarred two Nigerian waste management companies and their owner for five years for “engaging in fraudulent practices” involving a project in Nigeria.

The two companies, Rojoke CNE Services Ltd. (Rojoke) and CNE Environmental & Waste Services Ltd. (CNE), and their owner, Robinson Ekenedilichukwu Ojoko, were ineligible to participate in World Bank-financed projects during the debarment.

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