The contractor was certified to have achieved 100% completion valued at N320,254,100.00 as at 12th May, 2016. However, audit scrutiny of the payment profile revealed that Messrs Roses Regency Accommodation Ltd was awarded the contract through an award letter Ref: NDDC/EDP/AKS/RD/013/068 at contract sum of N340,254,100.00 with completion period of 24 weeks.
The payment had been completed and the following observations were however made.
Contrary to extant regulations, there were no evidence by way of bills, receipts and invoices for the expenditure of the following provisional sums in the BEME:
The sum of N3,200,000.00 provided Lump sum and paid for Testing and commissioning.
A sum of N1,300,000.00 provided for transportation.
A sum of N1,000,000.00 provided and paid for security of stored and installed materials.
The sums of N350,000.00 provided for design, survey and production of working drawing.
Out of 180 (100w,24v,DC LED Lamp with patented reflectors, Aerospace aluminum housing ,corrosion proof ,with system efficiency:80lm/w.input voltage of DC24v or AC220-240.Built in LED driver with constant current and power efficiency: 85% as manufactured by siemens (As Solar) Germany. Totalling N45,211,500.00, only 90 poles were installed as at Nov, 2018 leaving a balance of 90 poles. At N251,175.00 per unit, totaling N22,605,750.00
Further review of the BEME indicated that 20% as maintenance cost for 5 years by the solar consultant (this was to be paid to the consultant upon the completion of 5 years maintenance period at N40,165,596.00) and provisions in the BEME were paid along with the contract sum, contrary to term of contract. In addition, a contingency sum of N6,426,680.20 was utilised without evidence or recourse to extant regulations. Similarly, out of 180 poles provided for installation in the BOQ at N45,211,500.00 only 90 poles were installed, leaving a balance of 90 poles valued at N22,605,750.00.

Risks
There is a risk that the sum provided for five years repairs may be lost if the contractor fails to fulfill his obligation of repairs. Also, the sum for the 90 poles not yet produced by the contractor could amount to a loss for government.
There is a risk that sums released to contractors based on interim certificates are not monitored by affected department, so as to forestall paying for goods and services not provided.

Recommendations
The Management of NDDC is requested to:
Present for audit, evidence of expenditure of all the provisional sums worth ₦5,850,000.00 mentioned above or recover the amounts and forward evidence of recovery for verification.
Compel the contractor to urgently supply and install the remaining 90 poles as provided in the BOQ or recover the sum of N22,605,750.00 being payment for work not done.
Account for 5years maintenance fee paid with the contract worth ₦40,165,596.00 which supposed to be made at end of maintenance period.
The sum of ₦20,082,798.00 paid for maintenance of nonexistent poles should be recovered?