World Bank has barred a Nigerian IT firm, CEO for fraudulent practises

The World Bank has sanctioned SoftTech IT Solutions and Services Ltd., a Nigerian information technology solution company, and its Managing Director, Isah Kantigi, for alleged corruption.

The World Bank has sanctioned SoftTech IT Solutions and Services Ltd., a Nigerian information technology solution company, and its Managing Director, Isah Kantigi, for alleged corruption.

SoftTech IT Solutions and Services Ltd. and its managing director have been debarred by the World Bank Group, according to a statement.

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The firm, which worked on the National Social Safety Nets Project, was barred for 50 months, while the managing director was given a 60-month sentence.

What the Bank has to say
“The World Bank Group today announced the 50-month debarment of SoftTech IT Solutions and Services Ltd., an information technology solutions company based in Nigeria, as well as the 60-month debarment of its managing director, in connection with corrupt practises as part of the National Social Safety Nets Project in Nigeria,” according to the statement.

Isah Salihu Kantigi and SoftTech are no longer eligible to participate in World Bank Group-funded projects and operations. The debarments, according to the World Bank, are the outcome of settlement agreements in which both the corporation and Mr. Kantigi admit responsibility for the sanctionable conduct.

Kantigi’s and SoftTech’s debarments are both eligible for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, which was signed on April 9, 2010. (MDBs).

According to the World Bank, any affiliate that Mr. Kantigi or SoftTech controls, directly or indirectly, will be required to develop a Code of Conduct and corporate ethics training programme.

What you need to know
According to the facts of the case, Kantigi made “appreciation” payments to project authorities as an individual consultant as a reward for gaining a Bank-funded consultation services contract.

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Kantigi also worked out an arrangement with other individual consultants, allowing them to pay project authorities in the same way.

This is a corrupt activity, according to the World Bank’s Consultant Guidelines.
Kantigi, who is also the company’s Managing Director, authorised SoftTech to act as a conduit for payments to project officials for him and the other individual consultants. SoftTech took payments from individual consultants into its bank accounts and then transferred the funds to project officials’ personal accounts, effectively servicing them.
“This is a corrupt practise under the World Bank’s Anti-Corruption Guidelines,” the World Bank declared. Because of Kantigi’s and SoftTech’s cooperation and admission of wrongdoing, the settlement agreements provide for shorter periods of debarment.”

“As conditions for release from sanction under the terms of the settlement agreements, Mr. Kantigi commits to completing corporate ethics training that demonstrates a commitment to personal integrity and business ethics, while SoftTech commits to implementing a code of conduct that reflects the relevant principles set forth in the World Bank Group Integrity Compliance Guidelines and a corporate ethics training programme,” according to the Bank.

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