Contract scams in NDDC

Contractors with the Niger Delta Development Commission (NDDC) disappeared with N70 billion in mobilization fees without so much as reporting to their various project sites, according to the Office of the Auditor-General of the Federation, OAGF. It made this submission to the Senate Committee on Public Accounts (SPAC) recently. An Assistant Director in the OAGF’s […]

Contractors with the Niger Delta Development Commission (NDDC) disappeared with N70 billion in mobilization fees without so much as reporting to their various project sites, according to the Office of the Auditor-General of the Federation, OAGF. It made this submission to the Senate Committee on Public Accounts (SPAC) recently. An Assistant Director in the OAGF’s Public Accounts Committee division Mr Emanuel Akpan further disclosed that 1,733 contractors were involved in the scam. However, NDDC officials led by their acting Managing Director Ibim Semenitari disagreed with the figure. They said it was contracts worth “only” N11 billion that were involved in the scam. The contradictory submissions made the Senate committee chaired by Senator Andy Uba (PDP, Anambra South) to adjourn sitting for a month until the figures are reconciled.
Whether the amount involved is N70 billion or “only” N11 billion, what is clear is that there is deep rot in NDDC.  This is a federal government agency created in 2000AD by then President Obasanjo with the sole mandate of facilitating the rapid, even and sustainable development of this country’s oil producing Niger Delta region.  Ever since its formation NDDC was often in the news for the wrong reasons. Then Auditor-General of the Federation Mr Samuel Ukura once accused NDDC’s management of diverting N183 billion meant for development of the Niger Delta.
Anyone can see that NDDC has made little meaningful impact on the fortunes and infrastructure of the Niger Delta since its creation 15 years ago. It took NDDC 16 months to grant the Auditor-General permission to commence periodic checks beginning from 9th December 2011 to 6th May 2013. Similarly it took 16 months and several reminders before the report was submitted to the National Assembly. In addition to paying contractors who never mobilized to site, NDDC is also accused of extra-budgetary expenditure worth N90 billion, and of transferring N3 billion into unauthorized accounts. Furthermore, there was no evidence that N785 million out of N1.1 billion budgeted for the supply of furniture to various schools in Delta State was spent of the project, despite being certified as paid.  NDDC officials have been accused by OAGF of hiding these amounts when they submitted documents for examination, including a further N3.9 billion paid for a non-existing contract said to be ongoing in Ondo State. 
NDDC has become a cesspool of corruption when even its top officials admit that N11billion was fraudulently paid out to contractors without any work being done. Completely frustrated by the inability of NDDC to effect positive change in the Niger Delta, late President Umaru Yar’adua created the Niger Delta Ministry and the NDDC became a parastatal under it. Within a short time the ministry, too, became embroiled in corruption scandals. NDDC’s Executive Director, Finance Henry Ogiri has described the OAGF’s report as “premature and misinforming” and there is evidence of bad blood between these two government agencies.
The OAGF has a constitutional mandate to submit reports to the National Assembly periodically and he is carrying out his duty in submitting this latest report. His report sheds light on why there has been negligible development in the Niger Delta even though billions have been paid out over the years. Niger Delta “leaders” who have been the beneficiaries of these contracts have betrayed the trust of their people. The whole mess only goes to show the senselessness of creating new agencies to take over the role of already existing agencies. State and local governments exist in the region and the Federal Ministry of Works also has a presence in the Niger Delta. These organs of government should take care of development in the area, including any special intervention funds that the Federal Government wishes to channel to the region. If the NDDC and the Niger Delta Ministry cannot justify their existence and cannot overcome their propensity for corruption, they should be scrapped.