Uche Usim, Abuja
The Auditor-General of the Federation (AuGF), Mr Anthony Ayine, has uncovered irregularities in the award, execution and payment for contract for Shore Erosion Control Works at Akipelai, Ayakoro and Otuoke towns in Bayelsa State at a contract sum of N7,503,344,599 by the Nigeria Ports Authority (NPA).
Ayine, in his 2017 audit report of Ministries, Departments and Agencies (MDAs), said the gigantic contract was awarded via a letter with reference number: HQ/GME/CP/CON/R.16/067 dated March 22, 2012 with 14 months’ completion period.
“As at November 11, 2015, four payment certificates and an advance payment totalling N4,247,938,353.26, representing 56.61 per cent of the contract sum, had been paid to the contractor.
“Review of documents and the Bill of Quantities (BOQs) under Bill No. 1 (general) attached to these payments revealed that: mobilization fee of N1,125,501,659.85 paid to the contractor, was supported by a conditional bank guarantee from Zenith Bank Plc. with a validity period of 365 days which expired on the March 2, 2013, contrary to the provisions of Section 35 ‘1’ ’a’ of the Public Procurement Act, 2007 and Financial Regulations 2933 ’i’ (2009) which only provide for submission of an unconditional bank guarantee or insurance bond.
“More than four years after expiration of the bank guarantee, the contractor fails to renew it and the balance of unrecovered advance payment stood at N539,452,959. The sum of N19.5 billion was paid for the purchase of three Toyota Hilux double cabin petrol engine vehicles. However, there was no evidence to confirm that these vehicles were purchased.
The sum of N13.5 billion was made for annual running cost of the project vehicles, in which N6.75 billionwas certified and paid to the contractor, but there was no evidence to show what the amount was used for”.
The report further revealed that N11.25 billion certified for compensation of properties to be affected by the project and paid in Certificate No. 3, had no records on how the money was utilised nor the beneficiaries involved.
“N12.5 billion provided for community relations, was certified and paid vide Certificate No. 3 with no supporting documents to validate the payment. N128million provided for insurance of the works and insurance against damages to persons and properties, was certified and paid through Certificate No. 3 with No evidence that any insurance policy(s) was undertaken.
“The Principal Manager’s (QS) report on Interim Valuation Certificate No. 4 dated November 11, 2015, showed that the value of works executed as at the period was N3,903,668,868 representing 52.07 per cent of contract sum.”