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 .
After staying away for 75days out of 90 days suspension slammed on him by the Senate on March 12, 2024, Senator Abdul Ningi ( PDP Bauchi Central), formally resumed legislative activities at the Senate on Tuesday in plenary.
On the strength of motion sponsored by the minority leader Senator Abba Moro on behalf of minority caucus, the Senate recalled Senator Ningi from the three months suspension
Recall that Senator Ningi was suspended by the Senate at the committee of the whole on 2024 budget padding allegation leveled against the Senate during interview he had with the BBC Hausa service.
The Senate had recalled the Lawmaker representing Bauchi Central, Abdul Ningi after 2 Months and two weeks of the 3months suspension slammed on him over his interview in which he alleged padding of the 2024 N28. 7tn budget.
The lawmaker was suspended on the 12th of March, 2023 for three months, but the Senate on Tuesday unanimously resolved to recall their colleague from suspension.
Recall that, Senator Olamilekan Adeola had come under Orders 9, 10, 41, and 51 to move a motion of privilege and issue of national importance against Ningi over his interview with the British Broadcasting Corporation (Hausa Service).
Ningi had, in the interview alleged that the budget passed by the National Assembly for the 2024 fiscal year is N25tn while the one being implemented by the Presidency is N28.7tn.
The motion, for the unconditional recall of Senator Abdul Ningi was sponsored by the minority leader Senator Abba Moro, Senator Olalere Oyewumi and Senator Osita Ngwu.
Apparently elated to be back in the Senate, Senator Ningi was among the first set of Senators and House of Representatives members to arrive the National Assembly for plenary on Tuesday
Senator Ningi who along with some few other Senators like Suleiman Kawu ( NNPP Kano South), Aminu Waziri Tambuwal (PDP Sokoto South) etc , came into the National Assembly through the Villa Gate, arrived exactly at 10: 40am, 20minutes to 11:00am fixed for commencement of plenary which even started at about 12:10 pm .
Following his suspension , Senator Ningi lost his Chairmanship position of the Senate Committee on National Identity and Population, which was allocated to Senator Mustapha Musa (APC Yobe East), two days after the now lifted suspension
Legislature
Minimum Wage: Senate tackles Labour over National Grid Shutdown, disruption of Hajj flight
**Resolves to use legislation to prevent reoccurrence
The Senate on Tuesday expressed displeasure at some of the excesses by some members of Nigeria Labour Congress ( NLC) and Trade Union Congress ( TUC) during the nationwide strike for new minimum wage on Monday.
The upper legislative chamber declared that the shut down of the National Grid and the disruption of Hajj flight by some labour unionists were more of economic sabotage than agitation for new minimum wage.
It consequently declared that such situation would not be allowed to re – occur as laws against it would be reflected in the new national minimum wage Act that would be enacted soon after submission of bill to that effect by the executive.
Senate’s grouse against the alleged excesses of labour unionists during the now suspended nationwide strike, came through a motion on the strike action and new minimum wage by the Chairman, Senate Committee on Labour, Senator Diket Plang (APC Plateau Central).
Senator Plang had in the motion, requested the Senate to call on the federal government to expedite action on new minimum wage as a way of stopping the industrial unrest which was however overtaken by sudden suspension of the strike by labour.
But in his remarks, the President of the Senate, Senator Godswill Akpabio said though it was heartwarming that the strike has been suspended but the excesses by some labour unionists need to be condemned
“One of such excesses, was the shut down of the National Grid which is more of an economic sabotage than agitation for new minimum wage.
“Disruption of Hajj flight by some other labour unionists as said by the Deputy President of the Senate, is also not palatable being a religious exercise.
“Also, disruption or prevention of students from writing their West African School Certificate Examination by some labour unionists during the strike was bad because the examination is not organized by Nigeria but West African Countries “, he said.
He added that such actions would not be allowed to be repeated as required laws against them, would be reflected in the new National Minimum Wage Bill expected from the executive very soon.
He,however commended the labour unions for calling off the strike
“I want to thank the Nigerian Labour Congress and the Trade Union Congress for listening to the voice of Nigerians and the international community by calling off the strike to enable negotiations to continue and we wish them well in the negotiations.
“On our part, we will continue to do our best by making contributions and at the same time awaiting the incoming Bill on Minimum Wage for us to enact for the benefit of all Nigerians”, he said .
**Counters AGF, insists Bill does not need wider consultation
The Senate on Tuesday approved a Bill to change the current National anthem titled “Arise O Compatriots ” to the old national anthem “Nigeria, we Hail thee”.
Following the consideration of the report of its Committees on Judiciary, Human Rights and Legal Matters, and Federal Character, and Inter governmen Affairs on Tuesday, the Senate passed the bill entitled, “National Anthem Bill, 2024” for third reading.
The Senate passed the bill amidst stakeholders misgivings, including Lateef Fagbemi, the Auditor-General of the Federation and Minister of Justice against hasty passage and the need for a wider consultation.
The bill was read for the first and second time last week Thursday at the Senate. It also received an accelerated hearing at the lower house as it was read for the first, second and third time.
The Bill will be transmitted to President Bola Tinubu for assent. If signed into law, it will be the first time Nigeria’s national anthem will be given legal backing.
Mongu nu Tahir, the Senator representing Borno North, while presenting the report of the Committee during plenary informed that the Bill seeks to give a legal framework to the national anthem “so that it can bite and bite with all the legal powers embedded in it.”
He clarified that the Bill, despite the concerns raised by the AGF does not need to be subjected to a wider process of citizen participation through zonal public hearings, resolutions of the Federal Executive Council, Council of State, National and State Assemblies, etc.
He insisted that the Bill is an ordinary Bill, not a constitutional amendment and only requires it to be read first, second and third time after a public hearing.
Presenting the committees report, Monguno however said that the new national anthem is apt as it represents the country’s people, culture, values and aspirations.
“The bill is in tandem with the spirit of unity. It will undoubtedly inspire a zeal for patriotism and cooperation. It will promote cultural heritage. Changing the national anthem will chart a path to greater unity”, Tahir said.
He then recommended that the bill be passed. The Senate then resolved to the committee of the whole to consider the report. After which, Godswill Akpabio, the Senate President put the bill to a voice vote and lawmakers supported it.
The Senate president also noted that the AFG is not a lawmaker and does not have a full understanding of how Bill’s are passed.
The bill was consequently read for the third time and passed.
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