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<p><em>Alleged N87bn fraud in Bashir Jamoh led Nigerian Maritime Administration and Safety Agency, NIMASA, through unexecuted contracts by Nigeria’s auditor general as earlier reported in The Union Nigeria</em><br />
<strong><a href="https://openlife.ng/">OpenLife Nigeria</a></strong> republishes the report.</p>
<p>THE Senate Committee on Public Accounts has sustained a query by the Auditor General of the Federation against the Nigerian Maritime Administration and Safety Agency, (NIMASA) over payment of <strong>N87billion</strong> for unexecuted contracts.<br />
The money was said to have been paid for unexecuted construction works at the Maritime University, Okerenkoko, in Delta State by NIMASA.<br />
Following the development, the Auditor General of the Federation in his 2015 audit report now being considered by the Senate Committee on Public Accounts, recommended some of officials of NIMASA for investigation by the Economic and Financial Crimes Commission (EFCC).<br />
It was learnt that series of invitations extended to the management of NIMASA by the Senate Committee on Public Accounts chaired by Senator Matthew Uhroghide (Edo South) to defend their indictment in the 2015 audit report of the Auditor General of the Federation were not honored by the agency.<br />
Following the refusal of officials of the agency to appear before the Committee the Senator Uhroghide-led panel resolved to sustain the query which is due for presentation to the Senate at plenary.<br />
Among the contracts not executed which the agency allegedly paid for are the construction of ship building facility and dockyard, maritime equipment and structure, ancillary buildings at Okerenkoko, Delta State was awarded to a company at a contract sum of N40.2 billion, construction of access roads, internal road network and drainages (work package B) at Nigerian Maritime University Okerenkoko was awarded on 7th January, 2014 to a company at the sum of N11.1 billion with a completion period of 18 months and another N36 billion contracts.<br />
Others are, Construction of Administrative Blocks A1, N836,026,170.00, Lecture Rooms, A2, N1,729,854,640.00, Vice Chancellors Lodge &; Staff Quarters A3 N11,711,090,610.00, Student Hostels, A4, (0% yet to commence), Power House – Power Sub Station A12, N151,445,250.00 (15% at Foundation Level), Perimeter Fence A13, N446,066,550.00 (0% yet to commence), Jetty &; Ramp A18</p>
<p>N808,091,100.00 (5% bush cleared), Provision of Electricity Services and Connection of the University to the National Grid A19, among others.<br />
The total amount for the contracts stood at N36 billion, according to the audit report.<br />
The query reads in part: “The package was awarded at a total contract price of N36,839,747,931.00. The tendering process was found to be selective, in that the award of contract was based on a recommendation letter jointly signed by leaders of Okerenkoko Federated Community, Gbaramatu Kingdom and Warri South West Local Government Area in favour of the two preferred companies.<br />
“It was observed that the sum of N5.5 billion had been paid vide PV. No. ZIB/EP/0358/14 of 16/04/14.<br />
“During site inspection carried out on 30/7/15, it was observed among others; that apart from the gate house, which had attained 70% completion, (as shown in the table above), most of the jobs were still at foundation level.<br />
“Project inspection visits undertaken by staff were generally misleading, as the reports submitted were not true reflection of the activities on ground.<br />
“It was gathered that some of the staff collude with the contractors to submit false progress reports on the project.<br />
“The Director General has been requested to justify the selective tendering process adopted in the award of this contract.<br />
“Show evidence and justify in concrete terms, the commitment of the mobilization fee to project execution, contrary to what was met on ground during physical verification.</p>
<p>“In line with Financial Regulation 3104 (i) to recover and refund to treasury, the sum of N5,525,962,189.65 (Five billion, five hundred and twenty-five million, nine hundred and sixty-two thousand, one hundred and eighty-nine naira, sixty-five kobo) being irregular payment, furnishing recovery particulars for verification.<br />
“The contract for the construction of ship building facility and dockyard, maritime equipment and structure, ancillary buildings at Okerenkoko, Delta State was awarded to a company at a contract price of N40,243,702,763.38 on 12th November, 2013 with a completion period of 36 months.<br />
“Relevant documents such as letter of award and contract file were not made available during the audit despite repeated demands.<br />
“As a result, I cannot confirm that due process was followed in the award of this contract. It was claimed that ‘there was a presidential approval’ for the project.<br />
“However, presidential approval does not suffice for a Federal Executive Council (FEC) approval or Bureau for Public Procurement (BPP) certification.<br />
“The payment profile indicated that on 05/12/13, through PV. No. GTB/EP/13/0905, the sum of N6 billion was paid as mobilization fees.<br />
“Meanwhile, as at the time of audit visit in July, 2015, though the contractor was on site, there were no structural, mechanical, electrical or ancillary buildings on site.<br />
“The contractor explained that their fabrications are being done outside Nigeria and letters of credit have also been opened for the fabrication of the equipment for the dockyard abroad, this claim could not be authenticated at NIMASA.<br />
“The inability to sight the BOQ and contract file made it impossible to ascertain the project content and confirm adherence to execution of this project.</p>
<p>The Director General has been requested to:<br />
Give reasons for not presenting the relevant documents relating to this project namely, letter of award, contract file and BOQ, for audit examination.<br />
“Show evidence of compliance with due process in the award of contract by producing the FEC approval and BPP certification, for audit scrutiny.<br />
“Show evidence and justify in concrete terms, the commitment of the mobilization fee to project execution, contrary to what was met on ground during physical verification.<br />
“In line with Financial Regulation 3104 (i), recover and refund to treasury, the sum of N6 billion being irregular payment, furnishing recovery particulars for verification.<br />
“The contracts for the clearing of bush of 20 &; 30 hectares of land at the ship building and dockyard, Okerenkoko Warri, were awarded to 2 different companies at contract sums of N160,523,900.00 and N221,542,418.00 in utter disregard to extant regulations which prescribe graduated payments beginning with mobilization.<br />
“The agency paid the contractors at once through P.V. No. UBA/EP/13/0552 of 13/6/13 and GTB/NIMASA/ EP/13/0704 respectively.<br />
“The payment vouchers which did not pass through normal checking processes were devoid of job completion certificates and other relevant attachments required for a valid payment voucher.<br />
“During an audit inspection visit to Okerenkoko, Warri, on 30th July 2015, contractors on site confirmed that there was no bush clearing at all and that each contractor cleared the bushes on their own project sites.</p>
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