Legislature
Senate probes NPA over clandestine dealings in award of N7.5bn Contract
***contractor gets N344m overpayment than work executed
Senate has commenced an investigation into some surreptitious dealings in award of contract for shore erosion control work at Akipelai, Ayakoro and Otuoke in Bayelsa state.
The Senate Public Account’s panel chaired by Senator Matthew Urhoghide based the investigation on a 2017 Auditor General’s report submitted to the committee for consideration.
The Contract was awarded in March 2012 with 14 months completion period .
But, as at November N4.2bn has been paid which represents 56.61 percent of the contract sum to the contractor.
However, review of quantities (BOGs) under No- 1 attachment revealed that mobilization fee of N1.1bn paid to the contractor, was supported by conditional bank guarantee from Zenith Bank Plc with validity for 365 days which expired on the 2nd March, 2013.
This Contrary to the Provision of section 35 ‘1’ of procurement Act 2007 and Financial Regulations 2933 “1” (2009) which only provide for submission of an unconditional bank guarantee or insurance bond.
But, NPA in a written response to the allegation claimed that enbloc recovery of mobilization fee may create a financial strain to the project hence the need to recover the fee on instalmental bases.
Also, it was uncorvered that the sum of N19.5 million was paid for Toyota Hilux Double cabin petrol engine however, there was no evidence to confirm that these vehicles were purchased .
In the NPA response to the allegation, the agency claimed that the Toyota Hilux was purchased.
In another observation by the Auditor General, N128 million provided for insurance against damages to persons and properties, was certified and paid through certificate No-3 with no evidence that any insurance was undertaken.
But, NPA in its response said, “Noted for future compliance. Payment for insurance of the works was carried by the contractor as required to the tune of the approved amount.
“The particulars of the insurance are usually retained by the contractor.”
In addition, in the interim valuation certificate No 4 dated November 11, 2015, it was discorvered that the value of works executed at the period was N3.9bn representing 52.07 percent.
But, the total amount paid to the contractor was N4.2 billion representing 56.61 percent of the contract sum which implies that the contractor was paid more than the work executed by N344 million.
The query reads, “A contract for Shore Erosion Control Works at Akipelai, Ayakoro and Otuoke towns in Bayelsa State was awarded at a contract sum of ₦7,503,344,599.00 (Seven billion, five hundred and three million, three hundred and forty-four thousand, five hundred and ninety-nine naira), vide award letter Ref. No.: HQ/GME/CP/CON/R.16/067 dated 22nd March, 2012, with 14 months’ completion period.
“As at 11th November, 2015, four (4) payment certificates and an advance payment totalling ₦4,247,938,353.26 (Four billion, two hundred and forty-seven million, nine hundred and thirty-eight thousand, three hundred and fifty-three naira, twenty-six kobo) representing 56.61% of the contract sum, had been paid to the contractor.
“Review of documents and the Bill of Quantities (BOQs) under Bill No. 1 (General) attached to these payments revealed that: • Mobilization fee of ₦1,125,501,659.85 (One billion, one hundred and twenty-five million, five hundred and one thousand, six hundred and fifty-nine naira, eighty-five kobo), paid to the contractor, was supported by a conditional bank guarantee from Zenith Bank Plc. with a validity period of 365 (three hundred and sixty-five) days which expired on the 2nd March, 2013, contrary to the provisions of Section 35 ‘1’ ’a’ of the Public Procurement Act, 2007 and Financial Regulations 2933 ’i’ (2009) which only provide for submission of an unconditional bank guarantee or Insurance bond.
“More than 4 (four) years after expiration of the bank guarantee, the contractor fails to renew it and the balance of unrecovered advance payment stood at ₦539,452,959.95 (Five hundred and thirty-nine million, four hundred and fifty-two thousand, nine hundred and fifty-nine naira, ninety-five kobo).
“The sum of ₦19,500,000.00 (Nineteen million, five hundred thousand naira) was paid for the purchase of 3 (three) Toyota Hilux double cabin petrol engine vehicles; however, there was no evidence to confirm that these vehicles were purchased.
“The sum of ₦13,500,000.00 was made for annual running cost of the project vehicles, in which ₦6,750,000.00 (Six million, seven hundred and fifty thousand naira) was certified and paid to the contractor, but there was no evidence to show what the amount was used for.
“The sum of ₦11,250,000.00 certified for compensation of properties to be affected by the project and paid in Certificate No. 3, had no records on how the money was utilized nor the beneficiaries involved. • ₦12,500,000.00 provided for Community Relations, was certified and paid vide Certificate No. 3 with No supporting documents to validate the payment.
“₦128,000,000.00 provided for insurance of the works and insurance against damages to persons and properties, was certified and paid through Certificate No. 3 with No evidence that any insurance policy(s) was undertaken.
“The Principal Manager’s (QS) report on Interim Valuation Certificate No. 4 dated 11th November, 2015 showed that the value of works executed as at the period was ₦3,903,668,868.75 representing 52.07% of contract sum.
“However, the total payment made to the contractor was ₦4,247,938,353.26 representing 56.61% of contract sum. This implies that the contractor was paid more than the work executed by ₦344,269,484.51.
“During inspection of the project, it was revealed that the contractor had since abandoned the project site; and the duration of the project had since lapsed without approval for its extension.”
NPA is expected to appear before the Committee to make oral presentation of its response to the query .
Former President of the Senate, Ahmad Lawan has extended his condolences to Governor Babagana Zulum and the people of Borno State following the recent devastating floods that have ravaged parts of the state.
A statement by his media adviser Dr. Ezrel Tabiowo quoted Lawan to have expressed deep sadness over the loss of lives and property caused by the disaster, which has left many residents displaced and without livelihoods.
He urged swift intervention from the National Emergency Management Agency (NEMA) and other relevant agencies to provide relief materials and assistance to the affected communities.
Lawan, who represents Yobe North Senatorial District, commended Governor Zulum’s efforts in responding to the flood disaster and pledged his support for the affected communities.
The former Senate President’s statement conveyed his solidarity with the people of Borno State during this challenging time.
The statement reads, “I am deeply saddened by the news of the severe flooding in Borno State, which has caused untold hardship and suffering to our compatriots. My heart goes out to those who have lost loved ones and property in this disaster.
“I urge the National Emergency Management Agency (NEMA) and other relevant agencies to swiftly provide relief materials and assistance to the affected communities.“
“I want to commend Governor Babagana Zulum for his proactive efforts in evacuating residents from the flooded areas and providing temporary shelters for them. His leadership has been instrumental in minimizing the impact of the disaster.“
He commended the federal government for providing additional support to Borno State to enable it to cope with the aftermath of the flood.
Lawan also urged the Borno State government to work with relevant agencies to find lasting solutions to the flooding in the state.
“While we commiserate with the victims of the flood, we must also work towards finding lasting solutions to this perennial problem. The Borno State government, in collaboration with relevant agencies, should embark on a comprehensive flood control programme to mitigate future disasters,” he said.
Senator Lawan prayed for the repose of the souls of those who lost their lives in the flood and wished the injured a speedy recovery.
From Friday Idachaba, Lokoja
The Kogi State House of Assembly has reconvened after a lengthy recess, with Speaker Rt. Hon. Aliyu Umar Yusuf expressing gratitude and excitement over the Supreme Court’s affirmation of Governor Ahmed Usman Ododo’s victory in the November 11th governorship election.
In his welcome address to members, Speaker Yusuf commended the lawmakers for their solidarity and assured them of the ruling All Progressives Congress (APC)’s commitment to collaborative governance for the state’s betterment.
Yusuf stated, “The Supreme Court’s pronouncement has profound significance for all of us, both as members of this esteemed assembly and as a state. We attribute this triumph to the Almighty God.”
The Speaker emphasized the legislature’s unity across party lines, saying, “As lawmakers, we have collectively rejoiced at this outcome, demonstrating our commitment to working harmoniously for the state’s progress.”
The assembly pledged its support for the executive branch, ensuring a harmonious working relationship to drive development and progress in Kogi State.
***Applauds Numerous Achievements in 7 Months
By Friday Idachaba, Lokoja
The Kogi State House of Assembly has passed a Vote of Confidence on Governor Ahmed Usman Ododo, lauding his outstanding achievements over the past seven months.
The vote of confidence was passed during Tuesday’s plenary session following the adoption of a motion on Urgent Public Importance, moved by Hon. Akus Lawal (APC-Ankpa 1).
In his motion, Hon. Akus highlighted the governor’s significant accomplishments in fiscal discipline, financial management, agriculture, health, security, infrastructure development, and education.
The motion commended Governor Ododo’s efforts in reducing the state’s domestic debt from N121 billion to N38 billion, earning Kogi State a “B-” rating with a positive outlook from FITCH Ratings.
The governor’s initiatives in agriculture, such as designating 8,000 hectares of farmland, releasing N8 billion to farm clusters, and refurbishing 200 tractors, were also praised.
In health, the motion recognized the governor’s efforts in formalizing the Health Insurance Scheme, revitalizing over 70 primary health centers, and distributing essential consumables and hospital equipment.
The governor’s commitment to security, infrastructure development, and education was acknowledged as well, including the engagement of local hunters and vigilantes, the launch of a metropolitan quick response unit, and the construction of roads and model colleges.
The House of Assembly’s vote of confidence is a testament to Governor Ododo’s dedication to transforming Kogi State and improving the lives of its citizens.
Hon. Jibrin Abu (APC-Ajaokuta) seconded the motion, which was supported by other members. In their various submissions, they applauded the governor for his achievements despite the pressure from ongoing litigation.
In his ruling on the motion, Speaker of the House, Rt. Hon. Aliyu Umar Yusuf, noted that despite the pending litigation from the election, the governor had achieved a great deal within seven months. He highlighted Governor Ododo’s impact on fiscal discipline, financial management, debt reduction, improved Internally Generated Revenue (IGR), and advancements in the agricultural sector.
Speaker Yusuf also emphasized the tremendous support the health sector has received under Ododo’s administration, from private healthcare to tertiary health institutions. He noted significant improvements in security, infrastructure development across the three senatorial districts, continuity and support for education, as well as reforms and improvements in Kogi’s civil service at both the state and local government levels.
He concluded that the governor not only deserves a pass mark but also excellence, and that a Vote of Confidence to support and encourage him was indeed in order.
Speaker Yusuf then adopted the motion following overwhelming voice votes in favor of the motion.
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