The Minister for Power, Works and Housing, Babatunde Fashola has been urged to investigate allegations of fraudulent dealings by officials of the Federal Ministry of Works in relation to two jobs for which contractors had bided.
The contracts are “LOT B2” – for the construction and rehabilitation of Mararaba Mubi Madagali/Michika Road (passing through Adamawa and Borno states) – and “LOT C3” – relating to the rehabilitation of the Zara-Hunkuyi Kafur-Gidan Mutundaya Road, located across Kaduna and Kano states.
The request for Fashola’s intervention is contained in some petitions written mainly by a local firm, Coasterners Engineering and Building Services Limited, headed by Kola Adegoke.
In one of the petitions dated December 16, 2016 and authored by Coasterners’ lawyer, Adetola Olulenu, it was alleged among others, that the process leading to the short-listing of contractors for the two projects was characterised by ‘’fraud, manipulation and open disregard of the provisions of the Public Procurement Act 2007’’.
The petitioner alleged that some of officers of the ministry and members of the procurement committee, saddled with the task of identifying suitable contractors for both projects, were bent on manipulating the process in favour of their preferred contractors.
“Our client submitted a technical bid along with other companies and subsequently, after being pre-qualified, submitted its financial bid for the construction and rehabilitation of Mararaba Mubi Madagali/Michika Road (passing through Adamawa and Borno states) as advertised.
“Upon the opening of the financial bid on October 30, 2016, our client was found to have quoted the lowest amount of N12,470,681,315.93k.
“By its lowest quotation, our client, by virtue of the provisions of the Public Procurement Act (PPA) 2007, particularly sections 16(17), 24(3), 32(2) & 33(1), is suitable and most qualified to be awarded the contract upon the issuance of certificate of ‘no objection’ by the Bureau of Public Procurement (BPP).
“But in an attempt to scuttle and circumvent the procurement process, some officers decided to recommend another company (owned by some Lebanese and which quoted N15, 995,851,495) to the BPP, contrary to the provisions and intention of the PPA, part of which is to encourage local contractors and save funds for the government,” Olulenu said.
He stated that, not only was his client’s bid the lowest, Coasterners also proposed the shortest execution period of 24 months (within which to complete and handover the project) as against the 36 months proposed by the Lebanese company.
Olulenu added that, not only did a company submit a doubtful “bid security,” it has been discovered that a senior member of the procurement committee filled, on its behalf, the financial bid documents, submitted for the company.
A search at the Corporate Affairs Commission (CAC), Olulenu said, revealed among others that the foreign company, in which favour senior officials of the Ministry of Works were manipulating the contract process, is not registered to carry out road construction works.
“By its memorandum and article of association, its main object is the business of general merchants, traders, importers, exporters commission agents and/or the business of hotel, restaurant, cafe, tavern beer house and refreshment room, etc,” Olulenu said.
He said a similar scenario was playing out in relation to the LOT 3 contract for the rehabilitation of the Zara-Hunkuyi Kafur-Gidan Mutundaya Road, located across Kaduna and Kano states.
“The lowest responsive bidding company is Henam Integrated. Services Limited. But the procurement committee recommended another company without any reason.
“Besides, these officials went ahead to unilaterally jack up the quotation of the latter company from N4,040,005,802 to somewhere around N4,800,000,000, in excess of what the company itself quoted.”
Coasterners, in another petition dated December 14, 2016 faulted its disqualification in the pre-qualification list of “LOT 11 and 12” by the Ministry of Niger Delta Affairs, and appealed for a review of the decision.
In the petition addressed to the Niger Delta Affairs Minister and the Director General, BPP, Coasterners denied violating any laws and appealed for a rethink on the part of the concerned authorities.