Audit observed that Advance Payment (Mobilization Fee) in the sum of N30,186,946.13 was made to a contractor from the contract sum of N202,237,723.73 for the construction of Academic Building Complex (lot 2), Complaint Building and Female Hostel (lot 2). However, the contract was later revoked and re-awarded to the lowest evaluated responsive bidder at the instance of the Bureau of Public Procurement. It was however noted that the value of work executed by the first contractor in the sum of N11,513,659.50 was reviewed upwards to N15,773,533.75 with the balance of the advance payment of N14,413,410.38 representing amount for work not done.
The above shows the risk of granting of mobilization fee for contracts without an Advance Payment Guarantee (APG) being received from the contractors.
The Vice Chancellor is required to recover the sum of N14,413,410.38. Sanctions in line with FR 3104 (i) & (iii).
The University is also required to ensure all advance payments to contractors are secured with Advance Payment Guarantees from a reputable bank.
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