i.The contract for the rehabilitation of access road to Federal Government College Ibillo – Ikpessa – Odo – Ekor Isua Road, Edo State was awarded to a contractor on the 21 of December, 2010 at a contract sum of N524,708,299.50.
ii.The contractor was given an Engineer’s Order, in accordance with clause 41 of the standard conditions of contract to commence work on 2 March, 2011 and complete same on or before 31 July, 2013.
iii.Advance payment of the sum of N28,933,914.80 was recovered from Interim Payment Certificates (IPC) generated, leaving an outstanding of N46,024,413.70
iv.The sum of N296,487,172.10 was certified and paid to the contractor for work done. This amount was considered reasonable to have fully paid back the advance payment.
v.Physical inspection of the project site in February 2020 revealed that the contractor demobilized from the project site since 2017 for a job due for completion on 31 July, 2013 due to the Ministry’s refusal to upwardly review the contract sum.
vi.In 2017, the Contractor requested for a review of contract sum on the basis that the original contract sum had become unrealistic but the Ministry could not obtain a Certificate of No Objection, hence the Contractor demobilised and abandoned the project.
vii.At the time the request for review of contract sum was made, the completion date of 31 July, 2013 had long elapsed.
viii.The Ministry failed to fully execute the terms of the contract agreement for over three years by not terminating the contract.
The Permanent Secretary is requested to:
I.Furnish reasons why advance payment made to contractor was not backed by required unconditional advance payment bank guarantee in accordance with extant regulations.
II.Recover and remit the sum of N46,024,413.70 to the Treasury.
III.iii. Forward evidence of remittance to the Public Accounts Committees of the National Assembly
IV.Otherwise, sanctions relating to payment for job not executed in paragraph 3104(i) of the Financial Regulations should apply.
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