(a) Examination of the contract documents revealed that there was no Federal Executive Council approval for the award of the contract since it was beyond the approval limit of the Commission. Also, examination of the Bills of Quantities shows that a preliminary sum of N66,048,089.72 was added to the contract sum without any break-down showing how the amount would be utilized.
(b) In checking through the accounting records and Bills of Quantities it was also observed that the amount of N34,248,089.72 was provided for consultancy/supervision in Bill one of the BOQ.
(c) The basis upon which the consultancy fee of N34,248,089.72 was arrived at was not produced for verification and there was no breakdown to ascertain whether the amount was in line with approved scale of fees payable to professional in the construction industry. Furthermore, the beneficiary of the consultancy fees was not disclosed neither was the mode of appointment specified.
During physical inspection carried out at the project site together with two NDDC Akwa Ibom State office engineers the following observation were made: Interim payment certificate No 01 dated 04/07/2016 totalling N112,153,755.00 was raised including provisional sum of N2,600,000.00 by Ukot Ukot without back up valuation certificate.
The team was told that the contract was taken over by Akwa Ibom State Government before the NDDC contractor was mobilized to the project site. The value of certified work under the NDDC was N112,153,755.00 which had been paid to the contractor.
The basis upon which the consultancy fee of N34,248,089.72 was arrived at was not produced for verification and there was no breakdown to ascertain whether the amount was in line with approved scale of professional fees. Furthermore, the beneficiary of the consultancy fees was not disclosed neither was the mode of appointment specified.
The circumstances leading to the taking over of the project by the State Government was not disclosed. The team could ascertain that it was due to the low pace of the project and poor quality of work execution that caused the taking over. Also due diligence and proper need assessment was not carried out before the contract was awarded
Consequently, the Commission did not derive any value for the sum of ₦112,153,755.00 paid on this project.

Risks
Non-adherence to the provisions of the Public Procurement Act on financial Approval Threshold.
Loss of public fund.

Recommendations
The MD/CEO should be sanctioned for non-compliance with the provision of the Public Procurement Act on approving threshold.
The MD/CEO should also provide evidence of State Government acknowledgement of the work done by NDDC before taking over of the project for which the sum of ₦112,153,755.00 was spent; otherwise, this amount should be recovered from the contractor. Evidence of recovery should be forwarded to the Office of the Auditor-General for Federation for verification.