THE WORLD BANK BLACKLIST
The sanction by the World Bank Group is another wake-up call
For far too long, Nigeria’s image has taken a bashing due to several unwholesome practices by some players in the private and public space. From corruption in public office, peddling of drugs, email, and other internet scams, some of our nationals have been implicated to our collective shame. It then came as no surprise that the latest report by global anti-graft agency, Transparency International (TI) ranks Nigeria 149 out of 183 countries on the Corruption Perception Index (CPI). This is despite the claims by agencies saddled with the responsibility of tackling corruption that they are winning the battle against the malaise.
Given the foregoing, we are concerned by the recent blacklisting of 18 Nigerians and firms operating in the country by the World Bank Group for engaging in corrupt tendencies, fraud, and collusive practices, among other infractions. The new annual report titled ‘World Bank Group Sanctions System FY21’ published a list of some 160 debarred individuals and firms across the world, whose activities failed the transparency and integrity test of the Bretton Woods institution. The WBG annual report covering Fiscal Year 2021 (1st July 2020 to 30th June 2021) was prepared by the offices of the WBG’s sanctions system, comprising the Integrity Vice Presidency (INT), the Office of Suspension and Debarment (OSD), and the Sanctions Board.
Regrettably, out of the 160 culprits, Nigeria accounted for 18, made up of eight individuals and 10 firms, who were variously excluded from WBG’s-funded contracts for periods of between six months and five years. Interestingly, the debarments made by the African Development Bank (AfDB) were recognised by World Bank, making the affected firms to be barred under cross-debarment policy. Each of the sanctions related to a finding that the firms or individuals had engaged in at least one of the five sanctionable practices – fraud, corruption, collusion, coercion, or obstruction – while participating in World Bank-funded projects. The individuals and firms were associated with strong indictments by the World Bank, not only against them but also by implication, on how we do business in Nigeria.
It is unfortunate that the breaches for which the 18 individuals and firms were sanctioned by the World Bank are usually treated with kid gloves by relevant agencies in our shores. They range from fraudulent and collusive practices, and misrepresentation of past experiences in a bid for a road maintenance contract (falsehood), among others. Firms that run afoul of the law here escape sanctions due to the social status of their promoters, partisan leaning or the fact that some of them are either owned by highly placed public officials or indulge in influence-peddling.
In a message accompanying the report, the World Bank President, David Malpass said the negative impacts of corruption on lives and livelihoods are well known. “Corruption diverts scarce development dollars from the people who need them most and corrodes the systems and services that are integral for reducing extreme poverty,” he said. The unwholesome acts for which the World Bank Group bared its fangs on the 18 Nigerian firms and individuals largely account for the situation in our country today.
Leading professional services firm, PricewaterhouseCoopers (PwC) had in a recent report stated that corruption in Nigeria could cost up to 37 per cent of Gross Domestic Product (GDP) by 2030, if it is not dealt with immediately. The sanctions by the World Bank Group should serve as a wake-up call to both the government, the anti-graft agencies, the National Assembly, and apex regulatory bodies to wear a new garb of fighting corruption and any semblance of it in the public and private space. This emblem of shame is one too many.
