Audit observed that the Bank awarded a contract for the construction of 963 units of residential building called Legacy Estate, with all the facilities and services of a modern urban setting at a contract price of N10,000,000,000.00. However, a total of N14,281,749,370.71 was disbursed to the contractor between 22nd November 2012 and 29th April 2013, thereby resulting in an overpayment of N4,281,749,370.71. No reason was provided for the additional payment; neither was any evidence of contract variation presented for audit.
Audit further observed, from physical inspection of the site on 7th July 2017, that the project had been abandoned since 2014, some months after payments were made, with less than 10% work done. Yet the bank did not only pay the full contract sum, the contractor was overpaid to the tune of N4,281,749,370.71, without any justification for the over-payment.
The Managing Director is required to recover the sum of N14,281,749,370.71 from the contractor, failing which sanctions stated within FR 3104 and FR 3105 should apply. The Office of the Auditor-General for the Federation should be informed once the funds are recovered, and evidence of same should be provided for audit verification.
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