Audit was constrained to review previous years’ transactions during this special audit, and observed that a contract for the supply of Power Systems (UPS & Inverters) was awarded at a contract sum of N96,888,591.45, vide award letter referenced NSITF/MD/LEG/CON/015 of 7th November, 2012 with four (4) weeks completion period. However, based on the provisions of the award letter, the following observations were made:
(a) 60% mobilization fee was paid as against 15% allowed by Section 35 ‘1’ ‘a’ of the Public Procurement Act, 2007 and without submission of bank guarantee.
(b) There was no evidence that the contractor trained designated staff of the Fund in the application of the products as contained in the award letter.
(c) There was no evidence to show that the company provided maintenance services as well as periodic report of the progress of the project.
Furthermore, examination of invoice No. 0202 of 21st December 2012, submitted by the contractor, revealed that a sum of N6,800,000.00 was embedded in the Invoice and paid to the contractor for ‘under-listed items’ without detailed breakdown, showing how it was utilized.
The Managing Director is required to justify the irregular payment of N96,888,591.45 failing which sanctions in line with Financial Regulation 3106 should apply.
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