Audit observed that a sum of N5,532,435,309.68 was paid to different contractors/consultants between 2012 and 2014 for various ICT related contracts/consultancies. The following irregularities were discovered:
a. The Fund could not produce contract documents used in the award of the contracts/consultancy services like advertisements carried out in two (2) National Dailies; bid documents submitted, evidence of meeting eligibility requirements; bid evaluation report; memorandum presented to the Federal Executive Council (FEC) or Ministerial Tenders Board (MTB) on contracts/consultancies above the approval limit of the Parastatal Tenders Board (PTB), approval by the FEC or MTB as the case may be and the Needs Assessments for the procurements.
b. 60% mobilization fee was paid to the contractors/consultants as against 15% stated in Public Procurement Act, 2007, and without submission of an advance payment guarantee from a reputable bank or Insurance Company, all in contravention of Section 35 of the Public Procurement Act, 2007.
c. Some of the contracts were seen to have been duplicated. For instance, Signal House Consulting Ltd. which ordinarily ought to have been a consulting firm was awarded duplicated contracts for the supply of ICT equipment amounting to N1,129,516,864.00; and M/S Comfort Olu Eyitayo & Co was awarded two supply contracts amounting to N324,629,540.00 which were seen to have been duplicated.
d. ‘’Certificate of ‘No Objection’ to Contract Award’’ was not obtained from Bureau of Public Procurement (BPP) for the award of the ICT contracts. e. There was no Job Completion Certificates/Stores Received Vouchers (SRV) to confirm that they were satisfactorily executed, but these contracts were fully paid for.
The Managing Director is required to provide to justify the payment of the sum N5,532,435,309.68 for contracts awarded in contravention of the above provisions, failing which the amount should be recovered from the contractors and paid back to the CRF with evidence of payment forwarded to the Public Accounts Committees of the National Assembly and to my office for verification. Sanctions within FR 3117 should apply.
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