For the irregularities in the award and payment of N968 million for the contract to supply medals and ribbons for the Armed Forces during a past Nigeria’s independence anniversary, a Senate panel has flagged the ministry of defence and has upheld the query that the money is recovered from the contractor for audit verification.
Documents from the Senate Committee on Public Accounts sighted by InsideBsuinessNG showed that the ministry awarded the contract for the production and supply of medals and ribbons for the Armed Forces of Nigeria during Independence Anniversary at a total contract sum of N968,830,000.00 in 2010 for which 50 per cent representing N484,415,000.00 of the total contract sum was paid to the contractor then while the balance was paid on January 26, 2015.
The contract and the payment, findings showed is riddled with irregularities and was as such opposed by the Deputy Director (Budget) who raised an objection according to an April 24, 2013, memo which the indicted officials of the Ministry that facilitated the payment shunned.
Also, the 50 per cent contract sum that was paid in 2010 is said to be above the approval limit of the Permanent Secretary of the ministry in addition to the absence of approval from the Federal Executive Council and also, an allegation that the contract was not tendered prior to its award.
For these reasons, the Senate Public Accounts Committee (SPAC) chaired by Senator Matthew Urhoghide has upheld the indictment report from the office of the Auditor-General of the Federation against the Ministry of Defence over the expenditure which the officials of the Ministry had failed to defend.
The SPAC chairman said a series of invitations that were extended to the Ministry on the matter had not yielded any response, thereby leaving the committee no other option than to uphold the query from the Auditor-General’s office.
The query from the Auditor-General reads, “The Permanent Secretary of the Ministry is expected to recover N968 million from the contractor and forward the payment for audit verification.
“A memo, dated 24th April 2013, raised by DD (Budget), had expressed misgivings about the way and manner the contract for the production and supply of medals and ribbons for the Armed Forces of Nigeria was awarded, and this further raised the doubt on transparency in the award of the contract
The Senate document noted that the entire contract sum had been paid in January following the payment of N484,415,000.00 in 2010 representing 50 per cent of the contract sum and the balance of N484,415,000.00 paid on 26 January 2015 via Payment Voucher No. 4001.
The Senate committee also noted that further examination of the payment voucher attachments shows irregularities such as, lack of evidence of any Ministerial Tenders Board Meeting that considered this award, contrary to Financial Regulation 2921(i).
“The approval of the Permanent Secretary for the payment of the balance of N484,415,000.00 is above his approval thresh hold.
“There was no evidence of Federal Executive Council approval, together with the Bureau of Public Procurement ‘No Objection Certificate.
“The items (ribbons and medals) were not taken on Store Charge because there was no Store Receipt Voucher produced, in violation of Financial Regulations 2401 (i).
“The total sum of N968,830,000 paid in respect of this contract could not be admitted as a legitimate charge against public funds.
In view of all of these, the Permanent Secretary has been requested to recover the sum of N968,830,000.00, forwarding evidence of recovery to this office for audit verification,” the AuGF query said.
Comments are closed.