MDA

Federal Ministry of Works and Housing

Project Location/State

Award Year

2019

Contract Sum

₦₦1,990,000,000.00

Amount Paid

₦₦1,160,400,626.10

Unaccounted

₦₦93,538,765.08

Context/Observation

i.The contract for the rehabilitation of Ifon – Uzebba – Iruekpen – Ose Bridge in th Edo State was awarded to a contractor on the 6 of April, 2009 at a contract sum of N1,990,000,000.00
ii.The contractor was given an Engineer’s Order, in accordance with clause 41 of the standard conditions of contract to commence work on 20 of April, 2009 and complete same on or before 19 of April, 2013.
iii. Advance payment of the sum of N 298,500,000.00 of which the sum of N190,746,949.21 was recovered from Interim Payment Certificates (IPC) generated leaving an outstanding of N93,538,765.08
iv.The sum of N1,160,400,626.10 had been certified and paid to the company for work done. This amount was considered reasonable to have fully paid back the advance payment if the Ministry was not negligent.
v.Physical inspection of the project site in February 2020 revealed that the contractor demobilized from the project site since 2013 due to the Ministry’s refusal to upwardly review the contract sum.
vi.At the time the request for review of contract sum was made, the completion date of 19 of April, 2013 had elapsed
vii.The Ministry failed to fully execute the terms of the contract agreement for over seven years by not terminating the contract.

Contractor

N/A

Beneficial Ownership Information

N/A

Legislative Recommendation

The Permanent Secretary is requested to:
I.Furnish reasons why advance payment made to the contractor was not backed by required unconditional advance payment bank guarantee in accordance with extant regulations.
II.Recover and remit the sum of N93,538,765.08 to the Treasury.
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.

Executive Action

N/A

Progress Report

N/A

Data Source

2019 Non-Compliance Audit Report of the FG

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