Bank projects: Works ministry violated procurement law – BudgIT
BudgIT has accused the Federal Ministry of Works of violating the 2007 procurement law for releasing funds of 62 projects, amounting to N9.3billion, to FIMS Microfinance Bank Ltd. A statement by BudgIT yesterday noted that the transaction, as shown on the Govspend platform, a website that tracks the amount of money released to contractors by […]
BudgIT has accused the Federal Ministry of Works of violating the 2007 procurement law for releasing funds of 62 projects, amounting to N9.3billion, to FIMS Microfinance Bank Ltd.
A statement by BudgIT yesterday noted that the transaction, as shown on the Govspend platform, a website that tracks the amount of money released to contractors by the federal government, occurred between June and December 2023.
But a check on the website showed that the bank has been a regular contractor of the ministry since 2018, with the Ministry of Water Resources and the Federal Road Maintenance Agency (FERMA) amongst ministries, departments and agencies (MDAs) that released funds to the bank.
The statement urged the Minister of Works, David Umahi, to state the rationale behind the disbursement, saying that as a financial institution, the award of road construction contracts to the company, amongst others, is a violation of the Public Procurement Act 2007.
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“Specifically, section 16 (6) (a) (i), (iii) and (iv) states that all the bidders, in addition to requirements contained in any solicitation documents, shall possess the necessary professional and technical qualifications to carry out particular procurements, financial capability, equipment and other relevant infrastructure to perform the obligations of the procurement contracts,” the statement reads.
The statement urged the minister to give an explanation to Nigerians on how repeated violations and infractions occurred in his office.
“In addition, we call on the Bureau of Public Procurement to review the transactions for violating the Public Procurement Act 2007 and serve appropriate sanctions for breaches where identified,” the statement added.
Speaking on the alleged gross mismanagement of public funds and blatant disregard for procurement laws, the country director of BudgIT, Gabriel Okeowo, emphasised that public funds should be treated with the highest level of caution and sense of responsibility to the collective interest of Nigeria and its people.
Responding to the allegation in a statement by his media aide, Orji Uchenna Orji, the minister clarified that he was in the Senate when the first payment was paid in June.
He added that the ministry acted in accordance with the law as the payment was made for service delivered by contractors and not for contracts awarded to the bank itself.
“There are issues with the report because up to August 20, I was in the Senate. When a contractor has done his or her work, the money becomes his and he can say pay it to this bank or another. So, they are being mischievous,” he said.