N6.5 billion contracts: Senate questions NECO over failure to follow due process

Tunde Opalana, Abuja

The National Examination Council (NECO) has been asked to explain how contracts worth N6.5 billion for the printing of security and non- security documents were awarded without due process.

Hinging on the 2017 report of Office of Auditor General of the Federation, the Senate Committee on Public Account faulted NECO on shoddy handling of two contracts worth N451 million and N6.1 billion respectively.

The report indicted the examination body of inability to present any record of approval for the contract in the first contract that cost about N451 million.

Likewise did the report found NECO wanting in the award of the second contract that cost about N6.1 billion, on the ground that; quotations were not collected from three bidders, taxes were not deducted from some of the contract payments, there was no technical and financial evaluation.

The report further revealed that NECO failed to attach evidence of placement of advertisement to either payment vouchers or contract files and that the amount expended was above the threshold of the Council and the contracts were split as some contracts were awarded to same contractor with LPO.

The query reads, “Examination of records and documents revealed that the Commission’s Tenders Board approved the award of contract for printing of security materials in the sum of ₦451 million to a company in March 2017 in contravention of provisions of Federal Government Circular No.SGF/OP/I/S.3/XI/849 of 16th January, 2016 which reiterated the approved revised thresholds for service wide application, for which the Parastatal Tender Board can only exercise authority on works whose value is less than ₦250 million while any sum above this, is to be referred to the Ministerial Tenders Board for approval.

“We sought for the authority for the above approval including the Ministerial approval but none was provided.

” The above unilateral award of contracts without following due process may lead to awarding contracts to unqualified contractors. Recommendation The Registrar/CEO should be sanctioned in line with provisions of Financial Regulation 3117. “

The NECO’s Registrar, Prof. Godswill Obioma in his response before the Committee on the issue of N461 million said, ” these are payments to Data Science Nigeria Limited for the supply of Optical Mark Readers for objectives questions paper for various examinations conducted by the Council.”

Prof. Obioma however, failed to justify the payment for the contract before the lawmakers as the Committee sustained the query against the examination body and asked for the refund , though he was the Registrar when act was committed.

The second query reads,”Examination of contracts awarded for the printing of Security and Non- Security Documents valued at ₦6,166,405,407.42 revealed that the contracts were awarded without compliance with the provisions of PART VI, Section 24 (I) of the Public Procurement Act (PPA) 2017 as amended, which states that except as provided by this Act, all procurements of goods and works by all procuring entities shall be conducted by open competitive bidding.

“The following irregularities were also noted, Quotations were not collected from three bidders as required by PPA 2007, Taxes were not deducted from some of the contract payments. iii. There was no Technical and Financial evaluation, Evidence of placement of advertisement was not attached to either payment vouchers or contract files.

The amount expended was above the threshold of the Council, The contracts were split as some contracts were awarded to same contractor with LPO and work order issued on the same date.”

Also responding to the N6.1 billion query, the Registrar said, ” The contracts for the printing for our questions are awarded through selective tendering. This is the case to avoid leakages of our examinations and award of contract to printers of doubted integrity.”

Not satisfied with Prof. Obioma’s explanations, the Committee Chairman, Senator Mathew Urhoghide sustained the query and insisted that NECO duly provide answers to issues raised by the Office of the Auditor General of the Federation.