MDA

Niger Delta Development Commission (NDDC)

Project Location/State

N/A State

Award Year

Contract Sum

₦949.2m

Amount Paid

₦881.6m

Unaccounted

₦N/A

Context/Observation

The contract for the dredging/desilting of Imo river, Onuimo and Ihitte Uboma (lot2) Ihitte Uboma was awarded to Messrs Cotrid Nigeria Limited in the sum of ₦949,220,780.00. Examination of record relating to payment for this contract and subsequent site visit revealed the following:
(a) Interim payment certificate (IPC) No.2 dated 7th july, 2017 shows that a cumulative figure of ₦881,623,169.70 had been released and paid to the contractor.
(b) The contents of Bill No1 of the BEME constituted expenditure of non-permanent works and ought to be supported with receipts, invoice or bill when claimed by the contractor in the interim payment certificates. Nothing of this sort was produced for audit examination.
(c) The valuation back-ups which were attached to the interim payment certificates outlined the contents and values of the BEME without project vehicle provisions but two Ford Rangers XLT were procured from the bill one that are claimed.
Included in the items of expenditure on the Contract Bill No 1:-
Release of ₦2,000,000.00 as claimed by the contractor for the payment of compensation.
Released of ₦8,400,000.00 as provisional sum for the hiring of house boat as living accommodation for contractor’s staff/engineers and Resident Engineer during the duration of the project.
Payment of the sum of ₦35,111,363.64 to the contractor as cost of survey, design and supervision of the project by nominated consultant as directed by the Engineer. It should be noted that the survey and design of the project ought to have been carried out even before the award of the contract.
(d) The provision of the sum of ₦55,911,363.64 in Bill No.1 of the BEME for this contract amounted to undue inflation of contract sum.
(e) That the purchase of two project vehicles which cost was not included in the BEME was without due economy canvassed by the extant regulations.

Risks
Payment for job not done.
Loss of government fund due to inflation of contract sum.

Recommendations
The MD/CEO NDDC has been requested to explain and comment on the reasonableness of the provision for expenditure of non- permanent works on the project.
Produce the detailed list of the beneficiaries (with identities) and inventory of properties which the sum of ₦2,000,000.00 was claimed by the contractor for payment of compensation in order to confer legitimacy on this expenditure; otherwise the sum of ₦2,000,000.00 should be recovered and refund to treasury while recovery particulars forwarded to the Office of the Auditor-General for Federation for verification.
Justify the provision of the project vehicles and sources of fund since this was not embedded in bill one (1) of the BEME.
Produce, for audit verification, the receipt, invoices, bills and statement of expenditure in respect of the items in the contract bill No1 provision on the above project. Otherwise, the expenditure of ₦55,911,363.64 cannot be certified as proper and legitimate charge to government Fund.

Contractor

MESSRS COTRID NIGERIA LTD

Beneficial Ownership Information

N/A

Legislative Recommendation

N/A

Executive Action

N/A

Progress Report

N/A

Data Source

2013-2018 Audit Report on NDDC

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