Audit observed that contract was awarded to a legal consultant at a contract sum of N120,000,000.00, vide award letter referenced NSITF/REC/03/MY0-1/11/13 of 8th November 2013, with four (4) months completion period. The scope of service was to carry out processing and regularization of title deeds and survey plans of land at Era village Ota-Awori, Ijanikin, Badagary expressway, Lagos State in collaboration with the Lagos State Bureau of Lands. As of December 2017, a total of N114,000,000.00 had been paid to the consultant with the last payment of N6,000,000.00 through payment voucher No. 04935 of 12th December 2017. Further examination, revealed the following:
(a) There was no evidence that due process was followed in the engagement of the consultant as the NSITF failed to provide the contract documents. Equally, the Ministerial Tenders Board (MTB) approval for the award was also not produced since the amount involved was above their threshold.
(b) NSITF could not justify the modalities for arriving at the consultancy fee without documentary evidence.
(c) A mobilization fee of 60% was paid to the consultant without submission of bank guarantee in contravention of Section 35 (1) (a) of the Procurement Act, 2007 which stipulates that mobilization fee of not more than 15% may be paid to a supplier or contractor and must be supported by an unconditional bank guarantee or insurance bond issued by an Institution acceptable to the procuring entity.
(d) Relevant documents for the release of the 90% of the consultancy fee to the consultant were not produced for audit examination despite repeated demand for them.
(e) The duration of the consultancy service had since expired on the 7 th March 2014 without the consultant completing the work he was engaged to do, and without any approval for the extension of the duration.
(f) The payment terms as stated in the award letter was violated. According to the award letter, after the payment of 60% mobilization fee of N72,000,000.00, the 40% balance of N48,000,000.00 was to be paid after completion and upon approval by the Management of NSITF. But as at the time of the audit in February 2018, the Fund could not produce the documents of the said land in which N120,000,000.00 was paid to the consultant to process, regularize the title deeds, and survey plans.
(g) A Contract of this magnitude was executed without a signed contract agreement by both parties.