Activity

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Audit findings:
Contract for the construction of mini–water scheme at Ajinapa, Orire LGA of Oyo State was awarded to a company at a contract sum of N449.7m through a letter reference No: FMWR/PD/S/181/Sub8/217/17, dated October 5, 2012 with twelve (12) months completion period.

Examination of the contract documents indicated that the project was completed and a total of N449.1m was paid to the contractor out of the total
contract sum, leaving a balance of N533k.

It was however observed from the records, that the mobilization fee paid was 50% instead of 15% required by Financial Regulation 2933 on mobilization fees. Other observations included a conscious loading of the BOQ with provisions that could not be justified, totalling N48.8m. Included in the provision was the Contingency sum of N20.3m.

Instead of utilizing the contingency provision for additional works, another contract was awarded and tagged Phase 2 of the construction of the Ajinapa Water Supply Scheme at a total cost of N249.3m through award letter dated 11th September, 2014, even when the first contract had not been completed.

A total of N187.7m was paid on this second phase of the water project as at 16th October, 2015, without evidence of work done.