Audit observed that an internal memo requesting for the release of funds for the sum of N4,870,000 for the rehabilitation of the head office building in Abuja dated 04/05/2017 was approved and paid to a contractor vide P.V No. CP/114/2016. The work was later given to another contractor. It was revealed that no such work was carried out in the head office building and none of the materials purportedly purchased passed through store records. A second internal memo requesting for the release of fund for the sum of N12,350,000 for the rehabilitation of the administrative block at the Industrial Development Centre, IDU Abuja and the Agency headquarters dated 03/05/2017 was approved and paid to the first contractor vide P.V no. CP/119/2016. Again, the work was later given to the second Contractor. None of the building materials (tiles, windows, doors etc.) purportedly purchased were recorded in the store records when checked. Valuation of work done on the three-bedroom flat building in IDC, IDU, had a value of N3,000,000 leaving an unaccounted balance of N9,350,000, since there was no evidence that the building materials were purchased and installed. The sum of N2,800,000.00 was also paid through a payment voucher no. SMEDAN/CP/113/2016, dated 4th May 2017 as non-personal advance to an officer for rehabilitation of Lagos office, Matori Building Lagos. None of the building materials could be traced to the store at the time of inspection in August 2018. There were no Store Receipt Vouchers raised to confirm that the items were actually purchased and taken on store ledger charge.
This infraction was due to the failure of the Director-General to strictly comply with the provisions of the law as relates to the award and execution of contracts on behalf of government. The procurement act and other extant laws and regulations are very clear on laid down procedures on such issues.