Oil exports: Reps summon Adeosun over breach of Procurement Act

The House of Representatives Committee on Public Procurement investigating the abuse, breach and violations of the Procurement Act in the engagement of contractors for pre-shipment inspection and monitoring of crude oil and gas exports by the Federal Government has summoned the Minister of Finance, Mrs. Kenisha Adeosun, to appear today (Tuesday) to shed light on how the successful contractors were selected.

Also to appear unfailingly with the Finance minister at 10 am before the House committee is the Permanent Secretary in the ministry, Alhaji Mahmoud Isa- Dutse.

Chairman of the House committee, Rep. Woke Oke, gave the order on Monday, following the failure of the minister and her staff to honour the committee’s invitation to explain the alleged indiscriminate issuance of certificate of no objections by the Bureau of Public Procurement in spite of the evident breach of the Procurement Act in the bidding process leading to the choice of contractors to monitor the export of the nation’s crude oil and gas resources.

In issuing the summons, members of the House committee resolved that the allegations against the Finance ministry in choosing the contractors were grave and because they border on the revenue of the country, she must appear before the committee to defend the allegations.

Following the resolution, the committee sent the Finance ministry Director, Legal services, Mr. Christopher Gabriel, out of the venue of Monday’s investigative hearing because he lacked the authority to represent the minister or the permanent secretary.

Before he was sent out by the committee, Mr. Gabriel had informed lawmakers that he was only informed about the committee’s hearing last Friday. He subsequently tendered a letter from the permanent secretary mandating him represent the Finance minister.

Aggrieved members of the committee while decrying the attitude of members of the executive to investigative hearings that had bearing on the revenue accruable to the country, thereafter insisted on the presence of the Finance minister and her permanent secretary or in the alternative the House will issue a warrant to compel their appearance.

However when the investigative hearing continued, the committee took the Director General of the Bureau of Public Procurement, Mamman Ahmad, to task over his violation of Sections 18 and 18b of the Procurement Act as procurement plans, number of consultants and their locations were not submitted by the Ministry of Finance before the successful bidders were announced.

Replying to a barrage of questions from lawmakers, Ahmad said that only the Ministry of Finance can answer some of the questions posed to him, but admitted the bidding process was flawed.

He stated that the BPP acted “on the strength of the documents before us. We recommended that the ministry carry out post qualification investigation.”

Earlier, Speaker of the House of Representatives, Yakubu Dogara, who was represented by the Deputy Minority Leader, Rep. Chukwumah Onyeama, said the House had always been concerned about transparency and accountability in the
lifting of crude oil in Nigeria.

“The World Bank also estimated that $300 billion of government funds generated from crude oil cannot be accounted for as it may have found its way into the pockets of some individuals,” Dogara said.

In his keynote address, Chairman of the committee, Rep. Wole Oke, said the House resolved to carry out the investigation because of “allegations of abuse, breach and violation of the Public Procurement Act 2007, in the engagement of pre- shipment consultants for oil and gas exports.”

The investigative hearing continues today (Tuesday).