China Zhongao Ltd: Blacklisted by AfDB, staff arrested by EFCC over N100m Bribe

Barely a month after it was blacklisted for sharp practices by the African Development Bank (AfDB), China Zhonghao Nig. Ltd, is in trouble again. Two of its staff have been arrested for offering a N50million (Fifty Million Naira) bribe to the Zonal Head of the Economic and Financial Crimes Commission,  EFCC, in Sokoto, Mr. Abdullahi Lawal
The two Chinese are Mr. Meng Wei Kun and Mr. Xu Koi.
According to a report by the Global Construction Review on its website, the AfDB blacklisted 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.
It is not known if EFCC’s investigation of Zhonghao was related to the AfDB blacklist.
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.
In Sokoto, the two Chinese suspects were arrested on Monday, May 11, 2020 in Sokoto.
The bribe was allegedly offered in a desperate bid to compromise ongoing investigations China Zhonghao Nig. Ltd,  handling contracts awarded by the Zamfara State Government to the tune of N50billion  (Fifty Billion Naira)  between 2012 to 2019.
The zonal office of the Commission is investigating the construction company in connection with the execution of contracts for the construction of township roads in Gummi, Bukkuyun, Anka and Nassarawa towns of Zamfara State; and also the construction of 168 (One Hundred And Sixty-eight)  solar-powered boreholes in the 14 local government areas of the state.
Apparently “alarmed by the consistency and professionalism of investigation being conducted” EFCC said in a statement that the company reached out to Lawal with an offer of N100million (One Hundred Million Naira) as bribe to “bury” the matter.
In a grand design to trap the corrupt officials,  Lawal played along, and on Monday, two representatives of the company Meng Wei Kun and Xu Kuoi offered him cash totaling N50million (Fifty Million Naira) in their office along Airport Road,  Sokoto.  The cash was offered as a first installment.
The suspects were promptly arrested with the cash as an evidence.
Investigation of the construction company was informed by an intelligence on alleged conspiracy;  misappropriation of public funds; embezzlement; official corruption; abuse of office, stealing and money laundering obtained against the Zamfara State government through inflated and uncompleted contracts awarded to the company.
Investigations have so far revealed that China Zhonghao Ltd has received payments of over N41billion (Forty One Billion Naira)  from the Zamfara State government, out of which about N16, 000, 000, 000. 00 (Sixteen Billion Naira) equivalent of over $US53,000,000.00 (Fifty Three Million US Dollars) was allegedly diverted and traced to some bureau de change operators
The suspects would soon be charged to court, Mr. Dele Oyewale, Head,  Media and Publicity for the EFCC said.