The Senate on Friday queried the Nigeria Port Authority (NPA) over alleged irregularities in the award of N7.5 billion contract in 2012.
The contracts as contained in the 2017 audit report were for off shore erosion control work at Akipelai, Ayakoro and Otuoke in Bayelsa state.
The Office of the Auditor General of the Federation had in the report alleged that the contract was awarded in March 2012 with 14 months completion period. The report said as at November of the same year, N4.2billion was paid which represents 56.61 percent of the contract sum to the contractor.
However, according to the report, review of quantities (BOGs) under No- 1 attachment revealed that mobilisation fee of N1.1billion paid to the contractor, was supported by conditional bank guarantee with validity for 365 days, which it said expired on the 2nd March, 2013, contrary to the provision of Section 35 ‘1’ of Procurement Act 2007 and Financial Regulations 2933 “1” (2009) which only provides for submission of an unconditional bank guarantee or insurance bond.
But, the NPA said in a written response that enbloc recovery of mobilisation fee may create a financial strain to the project hence the need to recover the fee in piecemeal.
The Auditor General’s report said the sum of N19.5 million was paid for Toyota Hilux Double cabin petrol engine, but there was no evidence to confirm that these vehicles were purchased. However, the NPA said purchased the vehicle.
In another observation by the Auditor General’s office, N128 million provided for insurance against damages to persons and properties, was certified and paid through certificate No-3 with no evidence that any insurance was undertaken.
But, NPA said it “Noted for future compliance. Payment for insurance of the works was carried by the contractor as required to the tune of the approved amount.
“The particulars of the insurance are usually retained by the contractor.”
In addition, in the interim valuation certificate No 4 dated November 11, 2015 showed that the value of works executed at the period was N3.9billion representing 52.07 percent.
But, the total amount paid to the contractor was N4.2 billion representing 56.61 percent of the contract sum and it implies that contractor was paid more than the work executed by N344 million.
The Chairman of the Senate Committee on Public Accounts, Sen. Mathew Urhoghide (PDP Edo South), directed that Managing Director of the NPA appear before the committee in the second week of January 2022 for documentary presentations on responses to the queries.
