14th April, 2021
By Nimot Adetola Sulaimon
The Centre for Anti-Corruption and Open Leadership (CACOL) has thrown its weight behind the Nigerian Senate in its bid to unravel the mystery surrounding the alleged irregular award of N3 billion contracts in four phases at The Federal Mortgage Bank of Nigeria (FMBN).
In a release issued by CACOL and signed by Tola Oresanwo, the anti-corruption organization’s Director, Administration and Programmes on behalf of its Chairman, Mr Debo Adeniran, he stated, “We received the news that the Senate Public Accounts Committee (SPAC) headed by Senator Mathew Urhoghide, has summoned the former Managing Director of FMBN, Mallam Gimba Yau Kumo, to appear before it to explain the rationale behind the irregular award of the contracts in question”.
The committee issued the summons following a query raised in a report by the office of the auditor-general of the federation (AuGF) against the FMBN. The 2015-2018 report by the AuGF is currently under scrutiny by the Senate panel. According to the report, the contract was awarded in four phases and was overpaid to the tune of N3,045,391,531.97.
“Audit observed that a contract was awarded to a contractor in four phases at a total contract sum of N3,045,391,531.97,” the AuGF wrote in the query. Audit however observed that the second, third and fourth phases of the contract were above the approval thresholds of the bank.
”It was also observed from the examination of payment documents that the contractor was overpaid in the sum of N118,717,892.72 that resulted from the irregular addition of five percent withholding tax in the bill of quantity on each of the four phases of the contract.
“Audit further observed, from physical inspection of the site that a provision of N 80, 000,000.00 was made and paid for the implementation of ‘Unified Access and Attendance System’ but the device was not working according to specifications.
”A sum of N644,040,000.00 was also provided in the bill of quantities for offshore training and other deliverables in the third and fourth phases of the contract, but there was no evidence of execution, in contravention of Financial Regulations 70.”
However, reacting to the query, Ahmed Dangiwa, currently managing director of FMBN, said the contract was awarded by the previous management.
He added that his leadership had made effort to correct the anomalies in the contract. Not satisfied with the explanation of the current managing director of the bank, the senate committee chairman asked the former managing director of the bank to appear before the panel to offer more explanations on the contract.
“Furthermore, we want to commend the Senate Public Accounts Committee for questioning the award of these contracts.
”The 1999 constitution of Nigeria generally vests the legislature with the power to make laws, although this responsibility is not limited to making laws as a lot of additional responsibility including that of oversight has also been placed upon the legislature.
”Oversight functions serve a variety of purposes among which are to keep the executive establishment responsible and accountable, to promote rationality and efficiency in the formulation and administration of public policy, among others.
”We want to believe that if the current trend by the senate committee is intensified and sustained with the cooperation of the various anti-corruption agencies in the country, stemming the tide of corruption in the various agencies and parastatals of government will not be a difficult task.
”However, we would call for the immediate prosecution of any official(s) of the bank found culpable in awarding the alleged contracts” the statement read.