AGS NEWS – The World Bank has identified $32 million in unaccounted funds within a Nigerian water sector project, sparking concerns of embezzlement and mismanagement.

The irregularities, flagged in the Bank’s FY2024 Sanctions System Annual Report, followed a forensic review by its Integrity Vice Presidency (INT).

The funds, earmarked for water infrastructure improvements, were inadequately accounted for, prompting intervention to safeguard the project.

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The World Bank has requested Nigeria’s Central Bank to reimburse $22 million, while $6 million remains allocated for operational expenses. To prevent further misuse, the project’s financial operations have been restricted to direct payments.

Additionally, the Bank imposed a 1.5-year conditional debarment on a Nigerian engineering firm and its managing director for fraudulent practices during the Nigeria Erosion and Watershed Management Project (NEWMAP).

Investigations revealed misrepresentation of staff availability and unauthorized personnel changes during implementation, breaching contract terms.

The $900 million NEWMAP initiative, supported by international grants, aimed to reduce soil erosion across multiple Nigerian states, including Abia.

The flagged firm was part of a joint venture contracted for design and supervision services but failed to meet its obligations.