Audit observed that:
i. A consultant, vide NEA/AD/S.393 was appointed July 13, 2013 for Technical and Financial Tender Evaluation of the Integrated Projects.
ii. Lot 1-Presidential Lodge was awarded to a company at the sum of ETB105,618,300.04 (=US$5,678,403.22) for completion in 52 weeks while Lot 2-Presidential Guest House/Gate House was awarded to the same company at the sum of ETB53,411,333.82 (=US$2,871,577.08) for completion in 60 weeks.
iii. The consultant was paid N6,968,750.00 (=US$44,600), N406,250.00 (=US$2,600) and N7,718,750.00 (=US$49,400.00) on 15/08/2014, 28/10/2014 and 09/11/2015, respectively.
iv. The Second consultant was paid the following amounts being cost of drawings and BOQ N37,500,000.00 (=US$240,000), N26,562,500.00 (=US$170,000) and N7,812,500.00 (=US$50,000) on 17/12/2013, 09/09/2014 and 16/06/2015 respectively.
v. Advance Payment Certificate No.1 dated 27/10/2014 in favour of the contractor was paid on 18/11/2014 to the company in the sum of N35,217,038.73 (=ETB4,300,000). Similarly, Interim Payment Certificate No.2 dated 15/11/2015 to the same company was paid on 26/11/2015 in the sum of N9,843,750 (=US$63,000).
vi. Grand total payments as at time of audit amounted to N124,217,038.73 (=US$794,989.05) which was 66,632,893.73 in excess of the A.I.E No. MFA/CAP/003/2014 for US$57,584,145.00 dated 26/03/2014, and
vii. On 16/05/2018, a Closure Order for the Integrated projects was conveyed to the Mission vide NEA/AD/S.393/1 which contravened the Provisions of Public Procurement Act 2007 and the mandate conveyed in A.I.E No. MFA/CAP/003/2014 for N57,584,145.00 dated 26/03/2014.
The Permanent Secretary MFA is requested to:
i. Furnish reasons for violation of Public Procurement Act on award of contracts.
ii. Recover and refund to Treasury, the sum of N124,217,038.73 (One hundred and twenty four million, two hundred and seventeen thousand and thirty eight naira, seventy three kobo) wasted on the integrated projects.
iii. Furnish the source of N66,632,893.73 (Sixty six million, six hundred and thirty two thousand, eight hundred and ninety three naira, seventy three kobo) spent in excess of the A.I.E No. MFA/CAP/003/2014 for N57,584,145.00 dated 26/03/2014 for the projects.
iv. Forward evidence of remittance to the Public Accounts Committees of the National Assembly, and
v. Otherwise, apply sanctions relating to irregular payments and poor cash management specified in paragraphs 3106 and 3115 of the Financial Regulations.
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