AfDB bans Nigerian company for engaging in fraudulent practice, the third company in 2019

African Development Bank (AfDB) President, Dr Akinwumi Adesina
  • The African Development Bank Group bans Lutoyilex Construct Limited, a construction and its Managing Director, Mr. Bamidele Obiniyi for 3 years.
  • AfDB says the debarment qualifies for cross-debarment by other multilateral development banks such as the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group.
  • This is the third Nigerian company to be flagged by the African Development Bank in 2019 for numerous fraudulent acts.

The African Development Bank Group has banned Lutoyilex Construct Limited, a construction company registered in Nigeria and its Managing Director, Mr. Bamidele Obiniyi (also known as Mr. Bamidele Abayomi) for 36 months.

The Development Bank said an investigation conducted by its Office of Integrity and Anti-Corruption established that Lutoyilex Construct Limited engaged in a fraudulent practice while bidding for a construction contract under the Agricultural Transformation Agenda Support Program Phase One in Nigeria (ATASP-1).

“While participating in a tender for the construction of social infrastructure in the Niger State, the company misrepresented its experience in conducting similar construction contracts,” AfDB said in a statement.

The debarment renders the company and its Managing Director ineligible to participate in Bank-financed projects during the period.

AfDB says 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.

This is the third Nigerian company to be flagged by the African Development Bank in 2019 for numerous fraudulent acts.

In January, the bank debarred of ALG Global Concept Nigeria Limited, a construction company in Nigeria, and its Managing Director, Abuharaira Labaran Gero, for three years.

Last month, it also banned Qualitrends Global Solutions Nigeria Limited, a Nigerian construction company, for 36 months.

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