1.The Contract for Shore Erosion Control works at Akipelai, Ayakoro and Otuoke Towns in Bayelsa State was awarded to a company at a contract sum of N7,503,344,599.00 (Seven billion, five hundred and three million three hundred and forty-four thousand, five hundred and ninety-nine naira) through award letter referenced HQ/GME/CP/CON/R.16/067 dated 22nd March, 2012 with 14 months completion period.
2.As at 27/06/2016, six (6) different payments totalling N4,547,938,353.26 (60.6% of the contract value have been paid.
3.The mobilization fee of N1,125,501,659.85 (One billion, one hundred and twenty-five million, five hundred and one thousand, eighty-five kobo) paid was supported with a conditional bank guarantee from a commercial bank with a validity period of 365 days which had expired on the 22/3/2013 contrary to the provision of Section35(1a) of the Public Procurement Act, 2007 which allowed for unconditional bank/Insurance guarantee.
4.There was no performance guarantee which is a pre-condition for the award of any procurement contract upon which mobilization fee is required, and
5. The contractor failed to renew the bond after 4 (four) years since the bank guarantee expired and the balance of unrecovered advance payment stood at N539,452,959.95.
1. Justify why Section 35(1a) and 36 of the Public Procurement Act, 2007 on the payment of mobilization fee with the support of unconditional advance payment guarantee (APG) and performance guarantee was violated.
2. Explain why the mobilization fee paid was not recovered embolic from the first certificate issued as required by the extant rules, instead of piecemeal recovery which has left an outstanding unrecovered amount of N539,452,959.95 (Five hundred and thirty-nine million, four hundred and fifty-two thousand, nine hundred and fifty-nine-naira, ninety-five kobo) even when the APG had since expired 4years ago, and the contractor had since abandoned the project;
3. Recover and remit the sum of N539,452,959.95 (Five hundred and thirty-nine million, four hundred and fifty-two thousand, nine hundred- and fifty-nine-naira, ninety-five kobo) from the contractor to the Treasury.
4. Forwarded evidence of remittance to the Public Accounts Committees of the National Assembly,
5. Otherwise, apply sanctions relating to irregular or wrong payment and failure to collect and account for Government revenue stated in paragraphs 3106 and 3112 of the Financial Regulations, respectively.
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