Office of the Inspector General

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.

  • Nigeria Supply Chain - Sub-contractor invoice fraud resulted in substantial overcharging
    (GF-OIG-21-002 - 9 March 2021)
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