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Six Chinese companies operating and Constructing Railways Projects in Nigeria blacklisted by the World Bank over alleged corruption

August 20, 2019

Six Chinese companies operating in Nigeria have incurred the wrath of the World Bank as they have been blacklisted over alleged fraud and corruption.

A publication on the the website of the bank listed the companies as CCECC Nigeria Railway Company Limited, CRCC Petroleum and Gas Company Limited and CCECC Nigeria Company Limited.

Others are China Railway Construction (International) Nigeria Company Limited, China Railway 18th Bureau Nigeria Engineering Company Limited and CCECC Nigeria Lekki (FTA) Company Limited.

They are part of several companies blacklisted from different parts of the world by the procurement unit of the bank, in a publication titled ‘Procurement – World Bank Listing of Ineligible Firms and Individuals’.

They were accused of violating the global bank’s procurement guidelines and would not be eligible to be awarded any World Bank contracts between June 4, 2019 and March 3, 2020.

Companies involved in World Bank projects including contracts are obliged to adhere strictly to the guidelines, which stipulate a high level of ethics and frowns on all manner of fraud and corruption including bribery and misappropriation of funds.

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The bank said: “The firms and individuals listed below are ineligible to be awarded a World Bank-financed contract for the periods indicated because they have been sanctioned under the bank’s fraud and corruption policy as set forth in the Procurement Guidelines and the Consultant Guidelines (for projects before July 1, 2016); or through the World Bank Procurement Regulations for Investment Project Financing Borrowers (for projects after July 1, 2016).

“Such sanction was imposed as the result of (1) an administrative process conducted by the Bank that permitted the accused firms and individuals to respond to the allegations.

“Through July 2007, this process was conducted in accordance with the Sanctions Committee Procedures adopted on August 2, 2001.

“The process is currently conducted in accordance with bank Procedure: Sanctions Proceedings and Settlements in the Bank Financed Projects.”

It further disclosed that some of the firms were sanctioned as a result of cross-debarment in accordance with the Agreement for Mutual Enforcement of Debarment Decisions dated 9 April 2010.

The specific cases involving the companies were not disclosed.