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N700bn Contract Scam Rocks N’Delta Ministry …FG Orders Contractors’ Arrest, Prosecution

Published

8 years ago

June 2, 2017

The Federal Executive Council (FEC) has received a report on the probe of activities in the Niger Delta Ministry between 2009 and 2015, which uncovered massive contract scams from the N700 billion released to the ministry within the period.
According to the report, despite the huge sums paid to contractors, only a dismal 12 per cent of contract performance was recorded, even as government now plans to recover the outstanding balance from the contractors or have them prosecuted.
Minister of Niger Delta Affairs, Usani Usani, disclosed this to State House correspondents after the weekly FEC meeting presided over by Acting President, Prof Yemi Osinbajo, at the Presidential Villa, Abuja.
He said, “the revealing content of the report shows that over N423billion has been expended in the region by the ministry alone, not other intervening agencies. From this amount, project execution rate has been at 12 per cent, with an average completion rate of a project standing at five years and the impact rate is eight per cent.
“So, today we have sought approval from council to have the recommendations of this report conveyed to the legitimate agencies charged with the statutory responsibilities of recovering government assets that are either misappropriated, misused or found to be idling in some quarters.
“With this, it means all those who have accessed government resources for one purpose or another must be compelled to make adequate use of same, otherwise face the recommendations that go with such violations. That is our position concerning that report and we have got council approval for that”.
The minister explained that the figures mean that 60 per cent of the funds appropriated for 427 contracts were paid out to contractors who only managed a 12 per cent completion rate.
He continued: “When we say 60 per cent, it is 60 per cent of the amount of money that was actually appropriated, being N700billion. And so, 60 per cent of that constitutes N423billion.
“So, to find that N423billion has been expended in the region with the type of result we see obviously shows that there is something tangibly and obviously wrong with how procurement had been carried out in the ministry”.
On the punishment to be meted to defaulting contractors, Usani said, “The measure of action to be taken to address the shortfall of our expectations of commitment to contractual commitments will be the determinant of what will be done. So, those that require sanctions will be sanctioned and the sanctions may not be uniform. It will also be according to the measure of liabilities owed by each of those contractors.
“Some should be compelled to return to site. Some, of course, should be made to refund money – those who we have seen by action displaying criminal intent by collecting money and not appearing at site at all.
“The report is not just all about punishing people. There are also those who have performed well and are commended and the report recommends that they should be encouraged to carry on in their contractual commitments”.
He also noted that officials like those of evaluation or monitoring personnel the ministry found to have connived with the defaulting contractors will be approximately dealt with, though he didn’t confirm any impending purge of officials.
On the slow pace of work on the East-West Road, Usani said, “As you know, no government agency is sufficiently funded. That becomes a major challenge. The second issue is to address the concern about commitment or lack of it by government. No administration, to the best of my knowledge, within a democratic setting, has been more committed than this present government.
“And demonstration of this is the action of this administration to go ahead and seek extra budgetary special loan credit from China to the tune of $500million. Now, we are making a fresh application to increase that to $774million to be able to tackle an aspect of that road, and this came under five of the special projects nominated by the president to see that work doesn’t stop, and if you look at our budget as lean as it is – about 50 per cent goes on the allocation to the East-West Road.
“Beyond that, for this year, the budget ministry proposed N8billion counterpart funding for the credit facility we are getting from China. So, we are committed but it is just impossible to say we will be able to allocate enough funds because the competing demands do not allow satisfaction in every sector of the economy. So, it is a problem for us”, Usani added.
Meanwhile, the House of Representatives Committee on Public Procurement yesterday, summoned the Minister of Finance, Kemi Adeosun, over alleged payment of N17 billion for procurement of office equipment.
It also summoned the Auditor-General of the Federation (AGF), Ahmed Idris, and former Accountant-General of the Federation, Jonah Otunla, over the transaction.
The three top officials are to appear before the committee members on Tuesday.
Their invitation was sequel to their failure to appear at the public hearing on the allegation organised by the committee on Thursday.
The minister sent the permanent secretary in the ministry, Isa Dutse, to represent her, but the lawmakers refused to accept any excuse for her absence at the investigative hearing.
Before issuing the summons, the chairman of the committee, Oluwole Oke, said the three officials had violated the provisions of section 15 of the Public Procurement Act 2007 as it pertained to the role of procurement entities.
He told the permanent secretary that the minister must provide documents that include the president’s approval for the contract, agreement signed by the contractors and record of payment of the contract by the ministry.
He said the summons became necessary because there was a document from the Office of the Accountant-General of the Federation showing that they had paid N17 billion on the contract.

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RSG Commits To Workers’ Welfare …. Calls For Sustained Govt, Labour Partnership

Published

4 days ago

May 2, 2025

The Tide

The Administrator of Rivers State, Retired Vice Admiral Ibok-Ete Ekwe Ibas, has assured the commitment of Rivers State government to workers’s welfare and industrial harmony in Rivers State.

The Sole Administrator gave the assurance after meeting with leadership of organized labour unions at the Government House, Port Harcourt on Wednesday.

Ibas reaffirmed government’s policy of prompt payment of salaries and pensions to workers and retirees, stating that all local government employees are not receiving the approved minimum wage.

He disclosed that approval has been given for payment of newly employed staff at Rivers State University Teaching Hospital and the Judiciary, while medical workers in Local Government Areas will now receive correct wages.

Ibas explained that, Government is reviewing implementation challenges of the Contributory Pension Scheme ahead of the July 2025 deadline, adding that Intervention buses have been reintroduced to ease workers’ transportation ,with plans to expand the fleet.

He said specialized leadership training for top civil servants will commence within two weeks, while due consideration is being given to implementing the N32,000 consequential adjustment for pensioners and clearing outstanding gratuities.

Ibas commended Rivers State workers for their dedication to service and called for sustained partnership with labour unions to maintain industrial peace.

“This administration recognizes workers as critical partners in development. We remain committed to addressing your legitimate concerns within available resources,” he stated.

The State NLC Chairman, Comrade Alex Agwanwor, thanked the Administrator for the steps taken so far with regard to workers welfare while appreciating his disposition towards alleviating the transportation problem faced by workers.

He also expressed appreciation for the government’s openness to dialogue and pledged continued cooperation towards achieving mutual goals.

The Rivers State Government assured all workers of its unwavering commitment to their welfare and called for continued dedication to service delivery for the collective progress of our dear State.

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Labour Unions In Rivers Call For Improved Standard Living For Workers

Published

4 days ago

May 2, 2025

The Tide

The Nigeria Labour Congress (NLC), Rivers Council, has called for policies that will improve the economic situation of the country in order to ensure enhanced living standard for workers.

The State Chairman, Mr Alex Agwanwor, made the remark on behalf of the unions affiliated to Labour Congress during the 2025 workers day celebration in Port Harcourt, yesterday.

Agwanwor highlighted the demands of the Unions which included the immediate payment of pension arrears, implementation of the N32,000 minimum wage for pensioners, and payment of gratuities and death benefits without further delay.

“We are calling for the regulation and protection of e-hailing drivers, implementation of increments and promotions, and resolution of long-standing issues in the polytechnic sector,” he said.

Agwanwor on behalf of the unions appealed to President Bola Tinubu to reinstate the democratically elected Governor, Deputy Governor, and members of the Rivers State House of Assembly.

He stressed the importance of democratic governance and good working relationship with elected representatives.

According to him, the unions expressed disappointment over the imposition of taxes, increase in electricity tariff, and high cost of goods and services, which have further worsened the plight of workers.

“We urge the federal government to take measures to alleviate the suffering of citizens,” he said.

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Tinubu committed to unlocking Nigeria’s potential – Shettima

Published

5 days ago

May 1, 2025

The Tide

Vice-President Kashim Shettima says President Bola Tinubu is committed to unlocking Nigeria’s full potential and position the country as a leading force on the African continent.

Shettima stated this when he hosted a delegation from the Hertie School of Governance, Berlin, led by its Senior Fellow, Dr Rolf Alter, at the Presidential Villa in Abuja last Wednesday.

He said Nigeria was actively seeking expertise from the global best institutions to enhance policy formulation and implementation, particularly in human capital development.

The Vice-President noted that President Tinubu was determined to elevate Nigeria to its rightful position as a leading force in Africa.

“The current crop of leadership in Nigeria under President Bola Ahmed Tinubu is ready and willing to unleash the full potential of the Nigerian nation on the African continent.

” We are laying the groundwork through strategic reforms, and at the heart of it, is human capital development.”

He described the Hertie School as a valuable partner in the journey.

According to him, Hertie School of Governance, Berlin, has track record and institutional knowledge to add value to our policy formulation and delivery, especially in this disruptive age.

Shettima reiterated the government’s priority on upskilling Nigerians, saying ” skills are very important, and with our Human Capital Development (HCD) 2.0 programme.

“We are in a position to unleash the full potential of the Nigerian people by enhancing their capital skills.”

The Vice-President acknowledged the vital support of international development partners in that effort.

” I want to thank the World Bank, the European Union, the Bill and Melinda Gates Foundation, and all our partners in that drive to add value to the Nigerian nation,” he maintained.

The Vice-President said human capital development was both an economic imperative and a social necessity.

Shettima assured the delegation of the government’s readiness to deepen cooperation.

” We need the skills and the capacity from your school. The world is now knowledge-driven.

“I wish to implore you to have a very warm and robust partnership with the government and people of Nigeria.”

Shettima further explained recent economic decisions of the government, including fuel subsidy removal and foreign exchange reforms.

“The removal of fuel subsidy, the unification of the exchange rate regime and the revolution in the energy sector are all painful processes, but at the end of the day, the Nigerian people will laugh last.

“President Tinubu is a very modern leader who is willing to take far-reaching, courageous decisions to reposition the Nigerian economy,” he added.

Earlier, Alter, congratulated the Tinubu administration for the successful launch and implementation of the Human Capital Development (HCD) strategy.

The group leader described the development as ambitious and targeted towards the improvement of the lives of the citizens.

He expressed satisfaction with the outcome of his engagements since arriving in the country.

He applauded the zeal, commitment, energy and goodwill observed among stakeholders in the implementation of Nigeria’s HCD programme.

Alter said the Hertie School of Governance would work closely with authorities in Nigeria across different levels to deliver programmes specifically designed to address the unique needs of the country.

He, however, stressed the need for government officials at different levels to be agile and amenable to the dynamics of the evolving world, particularly as Nigeria attempted to successfully accelerate its human capital development aspirations.