African Development Bank (AfDB) has blacklisted and banned four Nigerian companies from accessing financial projects from the institution.

It was learnt that the companies were barred for fraudulently obtaining AfDB’s financial projects after an investigation into their application process.

The companies, which were involved in fraudulent activities involving the Zaria Water Supply Expansion and Sanitation project in Nigeria, include Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated and Investment Co. Limited, and Medniza Global Merchants Limited.

According to reports, the investigation was carried out by the AfDB’s office of integrity and anti-corruption which is vested with the responsibility of probing corruption allegations against companies in order to prevent fraudulent activities in the process of bidding for financial projects from the AfDB.

The bank said in a statement:

An investigation conducted by the bank’s office of integrity and anti-corruption established that the debarred companies engaged in fraudulent and collusive practices during a tender for the supply of water meters, automatic meters, and house connection materials, under the Zaria Water Supply Expansion and Sanitation project in Nigeria.

The AfDB, in its statement, also disclosed that Sangtech International Services Limited, Sangar & Associates (Nigeria) Limited, Mashad Integrated and Investment Co. Limited, as well as Medniza Global Merchants Limited, have all been barred from applying for AfDB’s financial projects for two years.

Meanwhile, the four companies, reports said, will be denied access to other multilateral banks like AfDB due to the mutual agreement between them to forestall fraudulent activities. The banks include Asian Development Bank, World Bank, and more.

The statement continued:

The sanction renders these companies ineligible to participate in bank-financed projects during the debarment period.

Additionally, the 24-month debarment of the companies qualifies for cross-debarment by other multilateral development banks under the agreement for mutual recognition of debarment decisions, including the Asian Development Bank (ADB), the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.

In the meantime, the AfDB recently begun clamping down on several companies, as it, last year, barred some Nigerian companies for 36 months for engaging in fraud.