The World Bank discovered $32 million in unexplained funds in a Nigerian water sector project, raising concerns about probable corruption and bad management.
The Bank’s Integrity Vice Presidency (referred to as “INT” in the report) reported the disparities following a forensic investigation, according to the recently published FY2024 Sanctions System Annual Report.
An intervention was necessary to protect the integrity of the project since the monies, which were meant to strengthen water infrastructure were not properly accounted for.
The World Bank worked with the project team, which included Nigeria’s Task Team Leader, Operations Manager, and Financial Management Specialist, in a clear attempt to reduce risks.
The bank suggested actions to get the money back and stop more losses. As a result, $22 million has been requested to be reimbursed by the Central Bank of Nigeria, with $6 million still in the project account to cover expected operating costs.
In an effort to prevent such irregularities, the bank has also restricted the project’s financial operations to direct payments.
Subsequent enquiries revealed that a Nigerian engineering firm and its managing director had been placed on a 1.5-year debarment with conditional release by the World Bank due to fraudulent activities in the Nigeria Erosion and Watershed Management Project.
This judgement comes after the bank’s Integrity Vice Presidency conducted an inquiry and found instances of misrepresentation during the project’s bidding and implementation stages.
