The Economic and Financial Crimes Commission (EFCC) has
launched an investigation into a report of an alleged $3 million
fraud involving a Nigerian firm, Zenith Carex.

Global Fund, an international health sector funding
mechanism, had raised the $3million fraud allegation in the
latest report issued on March 9 by its Office of Inspector
General (OIG).

The global organisation, which pools the world’s largest
financial donations for the prevention, treatment, and care of
AIDS, Tuberculosis, and malaria, blacklisted Zenith Carex in its
report.

It accused the firm of systematically inflating invoices for the
distribution of health commodities to warehouses and health
facilities throughout Nigeria.

The company committed the alleged fraud between 2017 and
2019, a period of two years, the report had stated.

EFCC confirms probe

EFCC, Nigeria’s foremost anti-corruption agency, has
confirmed to PREMIUM TIMES that it has begun an
investigation into the matter.

It confirmed the ongoing investigation against Zenith Carex
and others in its reply to this newspaper’s Freedom of
Information (FoI) request.

PREMIUM TIMES’ request was fuelled by the rising concerns
about the poor attention, Nigeria’s anti-corruption agencies
pay to Global Fund’s indictment of Nigerian firms over the
years.

This is despite the reputational damage and possible loss of
goodwill the blacklisting of the Nigerian firms is capable of
causing the country in the global space.

Assuring this newspaper of its efforts to ensure justice is done
regarding the matter, EFCC wrote that it is investigating
“Zenith Limited for an alleged offence of conspiracy and
criminal breach of trust with regards to contracts for the
distribution of drugs/vaccine supply chain programme in all
states of the federation.”

The letter signed by the head of FoI desk of the agency,
Elizabeth Ayodele, wrote that the commission had also met
the representatives of Global Fund over the matter.

“It will interest you to know that the investigation has reached
an advanced stage,” the letter read in part, adding, “A zoom
meeting was even held with representatives of Global Fund to
enable them to assist our office on the allegations against the
suspects.”

Zenith Carex contacted

When contacted by PREMIUM TIMES in March, a
representative of the firm said the company was aware of the
OIG report. The contact, however, said the company would not
want to comment publicly on the matter as their lawyers were
exploring the best possible legal option to take.

But, Zenith Carex denied the allegations in a report by Punch
Newspaper on March 11, three days after the OIG’s report was
issued.

The firm said EFCC was aware of the development and had
invited some of the parties involved. It also called on the
federal government to intervene in the matter.

Confronted with EFCC’s fresh revelation to PREMIUM and
asked to comment on it again on Friday, an official at Zenith
Carex whose phone number appears on the firm’s website,
declined to speak.

The official, whom Truecaller identified as Adelana Olamilekan,
told our reporter, “The commission had already invited some
of our staff for questioning regarding the matter.

“So, I cannot speak further as the case is still under
investigation.”

Background

Global Fund is a funding mechanism that pools the world’s
largest financial donations for the prevention, treatment, and
care of AIDS, Tuberculosis, and malaria.

Given that Nigeria has the highest malaria burden in the world
(one in four cases globally), the world’s fourth-largest
tuberculosis burden and about two million people living with
HIV, funding programmes to stem the tide of these grim
indices became a central focus for Global Fund.

Since 2003, the Global Fund has disbursed over $2 billion in
Nigeria. But despite that, the country is still dogged by
disturbing health statistics partly because corrupt and
incompetent officials undercut progress in health management, health experts say.

Zenith, a sub-contractor of Chemonics International, who
managed an integrated supply chain for Global Fund Principal
Recipients in Nigeria and the United States Agency for
International Development (USAID) was blacklisted by the
Fund.

The OIG report said Zenith allegedly inflated distribution
invoices up to ten-fold and misrepresented the services
executed, resulting in a $3 million overcharge.

The revelation builds on previous yearly reports by the OIG
accusing Nigerian companies and government agencies of
abusing millions of dollars of the Global Fund aid.

Aside from the EFCC, the Independent Corrupt Practices
Commission (ICPC) had previously said it commenced
investigation into allegations against Nigerian firms, agencies,
and their proxies.

We also sent a similar FOI request to the ICPC seeking to
know the status of its investigations of allegations reported by
the OIG but there is no response yet.

https://www.premiumtimesng.com/news/headlines/470027-exclusive-efcc-probes-global-funds-3million-fraud-allegation-against-nigerian-firm.html

Lol

Didn't anyone tell them, that it is actually the Nigerian way of doing things?

EFCC needs to up its game

Inflation of prices,receiving money for jobs not done;these are typical Nigerian ways of doing business;these are how 70% at least of Nigerian richmen make their money.
Zenith just couldn't differentiate between the Nigerian way and how people and organisations in other climes do legitimate business.