Audit observed that contract for Media/Branding of the Nigeria-Canada Investment conference held between 1st and 4th May, 2013 in Toronto, Canada was awarded to a contractor at a contract price of N19,394,227.06, through award letter referenced MD/CE/LE/Award/2013/2 of 24th April, 2013. Supporting documents show that the award was initiated by a memo written by AGM Corporate Affairs to the Managing Director/Chief Executive on media support for Nigeria-Canada Investment conference dated 24th April 2013. Approval for payment was given by the Board Chairman on the 24th July 2013, to be ratified by the Board; and base on this, amount of N19,394,277.06 was paid through payment voucher No. 08973 of 6th August 2013 Furthermore, based on the documents reviewed and payment made, the following were discovered:
i. The contractor was paid without deducting Value Added Tax of N969,711.53
ii. The contract was awarded without the approval of the Parastatals Tenders Board (PTB) that has such power since the amount involved was above the approval threshold of the Chief Executive.
iii.The ratification by the Board as mentioned in the memo was not produced for examination.
The Managing Director is required to justify the payment of N19,394,277.06 for contract awarded without observing Due Process, failing which sanctions in line with Financial Regulation 3104 (i), (ii) and (iii) should apply.
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