Investigation into Nigeria Supply Chain
09 March 2021
Zenith Carex, a sub-contractor of Chemonics International, defrauded grant programs in Nigeria of US$3 million by systematically inflating invoices for distributing commodities to warehouses and health facilities. Chemonics approved and paid Zenith’s fraudulent invoices for over two years.
Chemonics’ controls were poorly implemented by negligent staff who missed key red flags when reviewing Zenith’s invoices. Inadequate financial monitoring in the local office and US-based Headquarters, combined with potential collusion between Chemonics and Zenith staff, allowed the fraud to remain undetected, despite significant budget overruns in the Global Fund contract.
Following this investigation, the Global Fund has strengthened the sustainability and cost effectiveness of its Nigerian supply chain, while Chemonics has severed its relationship with Zenith and improved its internal controls.