N700bn contract scam: Heads to roll in N’Delta ministry

…As FEC receives, approves probe report of ministry from 2009-2015

.Despite huge sums paid to contractors, only a dismal 12 percent of contract performance was recorded- Minister

The dramatis personae and errant public officials involved in the N700 billion contract scam in the Ministry of Niger Delta Affairs will in the days ahead be made to refund embezzled funds and face prosecution accordingly.

This is the highlight of the report on the probe of the Niger Delta Ministry between its inception in 2009 and 2015, which was tabled the Federal Executive Council on Wednesday for approval.

The report indicated massive contract scams from the N700 billion released to the ministry within the period.
Minister of Niger Delta Affairs, Usani Usani, disclosed this to State House correspondents after he presented the probe report to FEC.

Despite the huge sums paid to contractors, only a dismal 12 percent of contract performance was recorded, which government now plans to recover the outstanding balance from the contractors or have them prosecuted.

Useni further disclosed that the report would soon be forwarded to the security agencies for necessary recovery of diverted funds and prosecution.

He said: “The revealing content of the report shows that over N423 billion has been expended in the region by the Ministry alone, ‎not other intervening agencies.

“From this amount, project execution rate has been at 12 percent, with an average completion rate of a project standing at five years and the impact rate is eight percent.

“So, today we have sought approval from Council to have the recommendations of this report conveyed to the legitimate agencies charged with the statutory responsibilities of recovering government assets that are either misappropriated, misused or found to be idling in some quarters.

“With this, it means all those who have accessed government resources for one purpose or another must be compelled to make adequate use of same, otherwise face the recommendations that go with such violations, and that is our position concerning that report. And we have got Council approval for that.”

The Minister explained that the figures mean that 60 percent of the funds appropriated for 427 contracts were paid out to contractors who only managed a 12 percent completion rate.

“When we say 60 percent, it is 60 percent of the amount of money that was actually appropriated, being N700 billion. And so, 60 percent of that constitutes N423 billion.

“So, to find that N423 billion has been expended in the region with the type of result we see obviously shows that there is something tangibly and obviously wrong with how procurement had been carried out in the Ministry”, he stated.

On the punishment to be meted to defaulting contractors, Usani clarified that “the measure of action to be taken to address the shortfall of our expectations of commitment to contractual commitments will be the determinant of what will be done.

“So, those that require sanctions will be sanctioned; and the sanctions may not be uniform, it will also be according to the measure of liabilities owed by each of those contractors.

“Some should be compelled to return to site. Some, of course, should be made to refund money – those who we have seen by action displaying criminal intent by collecting money and not appearing at site at all.

“The report is not just all about ‎punishing people. There are also those who have performed well and are commended and the report recommends that they should be encouraged to carry on in their contractual commitments.”

He also warned that officials found wanting to have connived with defaulting contractors will be appropriately dealt with.