Editorial
BPP’s Revelation On FG’s Inflated Contracts
A detailed report by the Bureau of Public Procurement (BPP) claiming to have saved N27 billion in 2018 through the reduction of inflated contract costs by government contractors evokes much sadness and signals Nigeria’s final descent into ignominy. The mind-boggling revelation was contained in the bureau’s 2018 annual report.
In addition, the report stated that the savings emanated from diligent scrutiny of awarded contracts by federal Ministries, Departments and Agencies (MDAs) before the contractors were issued the Certificate of No Objection by the bureau. A Certificate of No Objection is a document confirming that due process was followed in the conduct of a procurement process.
In particular, among the reprehensible ministries, the report listed the Ministry of Transportation headed by former Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi, and the Ministry of Power, Housing and Works equally headed by former Lagos State Governor, Barrister Babatunde Raji Fashola.
Digested in the report was the assertion that in 2018, a total of 86 No Objection Certificates were issued to MDAs for an initial contract sum of N1.421 trillion but was reviewed downwards to N1.394 trillion by BPP, hence, saving N27 billion from the awarded contracts.
From the saved sum, N22.22 billion, representing the highest amount of savings made from a single ministry, came from the Ministry of Power, Works and Housing with an initial request of N877.40 billion. Similarly, the bureau saved N1.37 billion on projects from the Transportation Ministry also from an initially quoted amount of N76.22 billion.
The findings likewise revealed that disparate initially quoted contract sums from the Petroleum Ministries, Finance, Defence, Interior Affairs, the Central Bank of Nigeria (CBN) and Federal Radio Corporation were reviewed and a prodigious N1.576 billion was saved for the nation’s coffers. However, the Federal Capital Territory Administration, Ministry of Environment as well as the Ministry of Budget and National Planning were not indicted as savings were not made from them.
We entirely commend the action of these ministries in stoutly repudiating the lusciousness of procurement frauds and back-scratching ravaging the country.
The BPP’s report is perhaps a most disappointing confirmation that corruption is still deeply entrenched in government ministries, departments and agencies despite President Muhammadu Buhari’s avowed resolve to rid the country of the deep-seated culture of graft and usher in a new era of transparency in public office. It, therefore, stands to reason that so much hard work and tenacity are required if the government is to deterge the rot in the ailing bureaucracy.
It is scandalous that fraud in the procurement process has hamstrung the efficacy of public expenditure and the occasions to advance the quality of lives of Nigerians. Regrettably, it has been established by the World Bank’s Country Procurement Assessment Report (CPAR) that out of every N1.00 spent by the Nigerian government on projects, about 70 kobo is lost to underhand practices. This is mind-blowing, indeed.
These reasons precipitated the enactment of the first Procurement Act in 2001 which provides for the harmonisation of existing government policies and practices on public procurement to ensure probity, accountability and clarity in the procurement process. Had it been judiciously observed since its proclamation, the Act would have curbed corruption drastically.
That is why we applaud the bureau’s courageous report. We think that this recent disclosure is a congenial way for the Buhari administration to invigorate the anti-corruption war whose strides have come in fits and starts right from the inception of the regime.
If the BPP, a federal government agency, could uncover highly dubious activities of some MDAs, particularly in those ministries headed by Fashola and Amaechi, two choice members of the current administration, it indicates that regulatory bodies and institutions in our clime can operate independently if left unimpeded by the authorities.
Unfortunately, The Tide observes that procurement-related frauds advance unabated because concerned officers who conspire with bidders to breach the Act are not sanctioned thoroughly to deter them from their offences. In that case, we adjure the anti-corruption agencies to prosecute felons appropriately. Procurement officers, bidders and contractors should be held accountable for their actions.
The BPP has discharged its role in conducting efficient and integrity-based assessment of those inflated contracts. It has whistled against corporate malfeasance, vigorously proving to Nigerians that it can bite. It is left for the anti-graft agencies to conscionably investigate the offending MDAs and prosecute anyone found to be culpable, including members of the administration indicted for variegated financial crimes but who forfend themselves from prosecution.
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