The Federal Government has uncovered a massive fraud in the handling of contracts in the Niger Delta region.
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The Minister of Niger Delta Affairs, Mr. Usani Uguru
The Minister of Niger Delta Affairs, Mr. Usani Uguru, on Wednesday
said the Federal Government has uncovered some shady deals by some of
the contractors that handled projects in the Niger Delta region between
2009 and 2015, The Punch reports.
He said while some of the contractors made away with the money paid
them without appearing on the sites of the projects, some others
managed to implement 12 per cent of the projects they were paid for.
According to The Punch, Uguru disclosed this to State House
correspondents at the end of the weekly meeting of the Federal Executive
Council presided over by the Acting President, Yemi Osinbajo, at the
Presidential Villa, Abuja.
He said the discoveries were contained in a report of an
investigation carried out by the ministry on all contracts awarded and
projects carried out by the ministry from 2009 to 2015.
The late Umaru Yar’Adua and Goodluck Jonathan were the Presidents of the country during the period.
The minister said the report revealed that over N423bn had been
expended in the region by the ministry alone, adding that the amount did
not include the sums expended by other intervention agencies.
“From this amount, projects execution rate has been at 12 per
cent with an average completion rate of a project standing at five
years. The impact rate is eight per cent,” he said.
The minister said he sought and got the council’s approval to make
the report available to relevant government agencies in charge of
recovering government assets that were either misappropriated, misused
or found to be idling in some quarters.
He said while those who deserved sanctions would be punished, others who needed to return to sites would be compelled to do so.
He said, “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 they will face the recommendation
that goes with such violations.
“That is our position concerning that report and we have received council’s approval for that.
“Sixty per cent cost has been paid out to contractors with 12
per cent completion rate. Sixty per cent of the amount of money
appropriated which is N700bn, 60 per cent of that constitutes N423bn.
“To find that such money has been spent in that region with the
kind of work we see, shows that there is something tangibly and
obviously wrong with how procurement had been carried out in the
ministry.
“The number of projects awarded was 427 and there is no uniform
action by each of the contractors. So, the measure of action to be
taken to address the shortfall of our expectations or commitment to
contractual agreements will be the determinant of what will be done.
“Those that require sanctions will be sanctioned. The sanctions
may not be uniform. It will be according to the measure of liabilities
hold by each of the contractors.
“Some will be compelled to return to site. Some, of course,
should be made to refund money, those who we have seen by their actions
displaying criminal intent by collecting money and not appearing at
sites 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
recommended that they should be encouraged to carry on in their
contractual commitments.
“The report has also recommended that sanction will be taken
against officers. There are rules. I don’t know if they will amount to
purge.”
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