MDA

University of Abuja

Project Location/State

N/A State

Award Year

2016

Contract Sum

₦234.8m

Amount Paid

₦285.04m

Unaccounted

₦50.3m

Context/Observation

Contract for the construction of Faculty of Clinical Sciences Phase 1 (LOT 1) was awarded to a company vide award letter referenced UA/R/CON/04 of 15th September, 2016 in the sum of ₦234,716,276.50. Examination of records and documents relating to the award and execution of the project revealed the following anomalies:
• At the 74th regular meeting of the University Council of August 31st to 2nd September, 2016, even though the contract price of ₦234,813,789.50 was not adequate to execute the project, yet the contract was awarded and expressly stated in clause “e” of the award letter that the “contract is nonfluctuating”.
• The cost of cement and reinforcement steel which was awarded on 15th September, 2016 at ₦32,000.00/ton and ₦165,000.00/ton respectively, suddenly skyrocketed to about ₦52,000.00/ton and ₦280,000.00/ton respectively by the end of 2016 thereby necessitating the contractor’s request for price variation which the University approved additional sum of ₦50,324,511.15 (21% increase in the original contract value) thereby bringing total contract value to ₦285,041,187.66, above the threshold of the University Tenders Board.

Legislative Recommendation

N/A

Executive Action

N/A

Progress Report

N/A

Data Source

2017 Audit Report of the Federation

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