Sections 35 (1) of Part VI of the Public Procurement Act, 2007 which provides that a mobilization fees of not more than 15% may be paid to a supplier or contractor supported by Advance Payment Guarantee (APG). Furthermore, Section 35 (2) states that once a mobilization fee has been paid to any supplier or contractor, no further payment shall be made to a contractor/supplier outside the 15% mobilization fee, except upon a certificate of performance, or a performance bond/guarantee.
Examination of 3 contracts revealed that the College amortized the recovery of mobilization fees totalling ₦77,135,922.50 by deducting only one-third (1/3) of the amount on Valuation Certificate No.1 instead of full recovery of the 15% advance payments from the sum due to the contractors. By amortizing the recovery of the mobilization fee, the College was craftily paying the contractors above what should have been paid to them on subsequent Valuation Certificates.
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