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Contracts inflation: How BPP saved N26.86bn for FG

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BPP revealed this in its 2018 annual report obtained from the bureau by News Agency of Nigeria (NAN) in Abuja.

According to the report, the savings are from the review of contracts awarded to contractors by various Ministries, Departments and Agencies (MDAs) before being given certificate of “No Objection’’ by the bureau.

The report showed that in 2018, 86 certificates of “No Objection’’ was given out by the bureau to MDAs for contracts initially totalling N1.421 trillion but was later reduced to N1.394 trillion.

Of the savings made, the highest amount of N22.22 billion was recorded from the Ministry of Power, Works and Housing. The money was saved from an initial request of N877.40 billion.

Similarly, contracts under the Ministry of Petroleum Resources was reduced from N278.91 billion to N278.64 billion, resulting in savings of about N271 million.

Also, the BPP saved N1.37 billion on projects from the Ministry of Transportation from an initial request of N76.22 billion and from Ministry of Water Resources, N521 million was saved out of N13.12 billion.

From the Ministry of Finance, BPP saved N143.72 million from a request of N3.54 billion and about N33.65 million was saved from the Central Bank of Nigeria’s (CBN) initial request of N1.47 billion.

The report also showed that savings of about N494.96 million was made from various military contracts from an initial request totaling N123.82 billion for the procurement of critical equipment.

In addition, savings of about N8.04 million was made from various contracts under the supervision of the Ministry of Interior, from an initial request of N9.23 billion.

The procurement bureau also saved N104 million out of an initial request of N936.75 million by Federal Radio Corporation of Nigeria for the procurement of broadcast equipment for 2019 general elections.

The report, however, showed that no savings was made from contracts under the Federal Capital Territory Administration, Ministry of Environment and the Ministry of Budget and National Planning.

According to the report, the public procurement activities in most MDAs are shrouded in secrecy and not in line with international best practices

“The degree of the reported cases being prosecuted in the courts by the EFCC and the ICPC are clear testimony of the breaches in the MDAs.

“As observed in most cases, the procurement officers collude with the contractors and service providers to breach certain provisions of the BPP Act for their selfish reasons.

“These breaches range from faulty bid solicitation process, advance exposure of the bidding criteria to their preferred bidders and overlooking forged procurement statutory documents during technical and financial bid process.

“They also give out in-house prices of contracts to their preferred contractors and service providers which serve as an advantageous guide in their financial bidding, among other numerous breaches of the Act.

“Procurement officers, who are known to be colluding with the bidders to breach the Act, have not been reprimanded enough to deter them from their offences,’’ the Bureau reports.

A case was made in the report to support the establishment of special courts to handle public procurement corruption cases for the economic growth and development of the country.

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Crisis rocked NNPC as 40 top executives proceed on compulsory retirement

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Fresh crisis has rocked Nigerian National Petroleum Corporation as top 40 executives proceed on compulsory retirement. We gathered that uncertainty currently pervades the NNNPC, following the forceful retirement of 40 top executives in the corporation.

Their retirement has been approved by Group Managing Director of the NNPC, Mallam Mele Kyari. Those affected by the retirement, according to Punch Newspaper are group general managers and general managers.

“The one that is raising concern at the corporation is that most all the top management staff from M-3 to M-4 who are due for retirement within a year were asked to leave yesterday (Wednesday).

“About 40 GGMs and GMs were asked to leave, as they were retired by the corporation yesterday (Wednesday). Most of those affected are also not happy because they felt they were not due for retirement. However, they were all asked to leave yesterday and that is raising dust and concern among staff at the corporation.”

“But ask yourself this question, how long will it take the upcoming staff to get to those positions? The system is currently heated up and employees from certain regions of the country are not happy about this. As at this week, the corporation witnessed a massive shakeup. The management had to readjust some prominent positions.

“One of such is the movement of a top chief operating officer from a position that he only assumed last year to another position of COO that is not comparable to his former office.

“Another issue is that in the corporation, we have two categories of subsidiaries, the ones considered as redundant and the ones considered as grade A subsidiaries, such as NAPIMS, NPDC, shipping, NNPC Trading, PPMC.

“Under the present dispensation, one would have expected some form of balancing in terms of postings to these subsidiaries. But as it is right now, most of the positions in these subsidiaries are headed by people from one region of the country.

” If we doing something, we will officially announce it. So let’s just leave it at that,” the source told Punch Newspaper

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GOING!!!: ECOBANK SETS TO SELL OBA AKINRUNTAN’S ABUJA HOTEL OVER N5BN DEBT

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The High Court of the Federal Capital Territory (FCT), Jabi, Abuja, will on April 9 hear an application by Ecobank Nigeria for an order authorising it to sell the Abuja hotel belonging to Obat Oil and Petroleum Limited, owned by Oba Fredrick Akinruntan, the Olugbo of Ùgbo Kingdom in Ondo State.
The bank said it has agreed with Obat Oil, which belongs to the monarch, to sell the hotel to offset N5 billion debt owed the bank by the hospitality outfit.
The hotel, Febson Hotels & Malls, is on Plot 2425 on Herbert Macaulay Way in Abuja.
Justice Hassan Babangida had adjourned to enable the parties to settle, but Obat’s lawyer, Mr Olalekan Ojo (SAN), said “not much had been achieved” in the settlement talks.
The bank’s lawyer, Mr Kunle Ogunba (SAN) of Insolvency Forte, said the talks had broken down completely.
He added that he was yet to receive any correspondence or document on an out-of-court settlement.
The bank, in its last October 18 motion, said the agreement to offset the N5 billion debt, is contained in a consent judgment of a Lagos High Court delivered on March 15, 2017.
It said the agreement between it and Obat Oil was adopted by the court as its judgment.
The bank, however, said despite the registered consent judgment, Obat Oil prevented potential buyers from paying for the hotel by demanding unrealistic sums.
But Obat Oil, in its counter-affidavit, said the bank, in an April 5, 2017 letter, assigned its rights and interests in the case to a third party, ETI Specialised Finance Company Limited, which is Ecobank Group’s debt recovery vehicle.
The oil company accused the bank of concealing the fact before the court.
The respondent contended that by the alleged concealment, the bank “no longer had any right or interest in the judgment-debt sought to be enforced before the honourable court”.
Justice Babangida fixed April 9 for definite hearing but noted that parties were at liberty to settle.

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Access Bank ranked as Overall Best in Corporate Social Responsibility (CSR) in Nigeria

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Access bank plc has been ranked as the overall best company in Corporate Social Responsibility (CSR) and Sustainability in Nigeria for the year 2019 as published in Forbes Africa, Prestige Magazine magazine gathered that ,The ranking was based on a result drawn from impact assessments of 910 organisations operating in Nigeria over the last 13 years.

According to the report, the ranking took into cognizance Access Bank’s participation in impactful national projects, its recognitions, and ratings from international award bodies, investment in CSR and sustainability in the period under review.Reacting to the ranking, the Head, Sustainability, Access Bank Plc., Omobolanle Victor-Laniyan said: “Access Bank has a corporate strategy and philosophy which places sustainability at its core. We ensure that our projects and initiatives are impactful and strategically linked with the United Nations Sustainable Development Goals.“Over the years we have recorded outstanding results by undertaking several initiatives across the country, and we are deeply honoured to be recognised as the overall best company in Corporate Social Responsibility (CSR) and Sustainability,” Victor-Laniyan added.

Having launched the Nigerian Green Bond Market Development Programme in June 2018, Access Bank’s determination to promote sustainable growth through funding of projects at a lower cost of capital, led to the issuance of a N15 billion (USD41 million) corporate green bond in 2019. The issue is the first-ever Climate Bonds Initiative certified corporate green bond in Africa.

Additionally, it is worthy of note that Access Bank dedicates a minimum of one percent of its Profit-Before-Tax to Sustainability. The bank also championed the Malaria-to-Zero initiative, co-created the first disability inclusion hub in Nigeria, initiated and led the development of the Nigerian Sustainable Banking Principles and has brought about social and economic benefits to host communities across Nigeria through its employee volunteering scheme.

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