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Tag: BPP

  • BPP urges court to void PHCN’s N1.786b liquidation contract

    BPP urges court to void PHCN’s N1.786b liquidation contract

    The Bureau of Public Procurement (BPP) has urged a Federal High Court in Abuja to void a N1.786,287,040 contract awarded for the wind-up/liquidation of the Power Holding Company of Nigeria (PHCN), claiming it was illegal.

    It is BPP’s contention that the contract – for the provision of legal advisory services for the liquidation of PHCN – awarded in 2014 by the Bureau of Public Enterprises (BPE) to a law firm, JP Gadzama LLP (formerly J. K. Gadzama & Partners LLP) was without compliance with due process as required under the Public Procurement Act (PPA) 2007.

    The BPP stated that the BPE allegedly awarded the contract and made part-payment to the law firm, without first obtaining a “certificate of no objection” from it (BPP), as required  the PPA 2007.

    This formed part of BPP’s argument in documents filed by its lawyer, Wahab Olatoye in response to a suit by J. K. Gadzama LLP and Joe-Kyari Gadzama (SAN), marked FHC/ABJ/CS/997/2015.

    The plaintiffs had sued, alleging among others, that BPP unlawfully effected a downward review of the cost of the contract from N1.786,287,040 to N929,613,188.94 and queried BPP’s right to so act.

    In their amended originating summons, the plaintiffs claimed to have bided N2,864,349,600 for the contract, while the BPE agreed to “a negotiated N1,786,287,040.”

    sary for the liquidation of PHCN. Similarly, any of the remaining items 2, 4, 7 and 9 which is not contemplated by the procedure described in sections 457 – 468 (and there is hardly any contemplated) would equally be unnecessary to accomplish the liquidation.

    “I am to reiterate my earlier opinion that the proposed engagement of consultants for provision of legal Advisory Services for the liquidation of PHCN and valuation of PHCN’s non-core headquarters assets is inconsistent with the provisions and spirit the Electric Power Sector Reform (EPSR) Act, and that the proposed agreement to this effect, should not be executed by parties.”

    The BPP argued that, in awarding the contract to the 1st plaintiff (J.K.Gadzama LLP), the 2nd defendant (BPE) violated existing laws, more so, when it was not the nature of contracts that involved national security or defence to warrant it from being exempted from the application of the PPA 2007.

    It argued that from a community reading of sections 16(1) & (2), 41(10 of the PPA 2007 the award of consultancy contract for a legal advisory service is a public procurement within the meaning of Section 15(10 and 60 of the PPA 2007.

    The BPP, while challenging the BPE to produce the certificate of no objection, on which basis it purportedly awarded the contract, argued that its petitions to the EFCC and ICPC on the issue were not frivolous, but intended to ensure that due process was adhered to.

    It further said: “in the instant case, the 2nd defendant (BPE), in gross violation of instant law, particularly section 16(1)(2) of the PPA 2007, after being denied the request for the issuance of a certificate of no objection to award a consultancy contract for legal advisory services for the winding up of PHCN pursuant to Section 16(18) of the PPA 2007 and also, on the objection and advice by the AGF, BPE went ahead to award the contract.

    “It is noteworthy to state that the issue in contention is not the selection of the 1st plaintiff as the winner of the bid, but whether the award of the said contract to the 1st plaintiff by the 2nd defendant, without a certificate of no objection duly issued by the 1st defendant is lawful.

    “We submit that the award of the contract to the 1st plaintiff by the 2nd defendant, without due compliance with Section 16(1)(2) of the PPA is illegal, null and void and same should be set aside accordingly pursuant to Section 16(4) of the PPA 2007,” the BPP said.

    It equally objected to the suit on ground of jurisdiction, arguing that not only was there no cause of action against it and that the suit was statute barred within the contemplation of Section 2(a) of the Public Officers’ protection Act, having been filed about seven months after the downward review of the contract sum was effected.

    The BPP noted that while the plaintiffs stated that the downward review was effected in April 2015, they filed the suit on December 8, 2015.

    After taking arguments from parties on June 7 this year, Justice Adeniyi Ademola reserved judgment and said the court will inform parties when the judgment is ready.

     

  • We‘ll review BPP Act, says Minister

    We‘ll review BPP Act, says Minister

    The Minister of Information and Culture, Alhaji Lai Mohammed yesterday said the Federal Government will review the Bureau of Public Procurement (BPP) Act to promote local goods and services.

    He said the government was determined to diversify the economy through made-in-Nigeria goods and services.

    Also,  additional 28 offices for issuance of residence permits in Nigeria will soon be opened to attract foreign investors.

    Mohammed who unfolded these plans at the ninth Town Hall Meeting of the Federal Government in Umuahia, said there is no going back in seeking alternative to oil.

    He said the Change Begins With Me campaign, which was launched by President Muhammadu Buhari on  Sept. 8 last year,  was “aimed at achieving a paradigm shift in the way we do things.”

    He said:“Boosting industrial development, especially through the local production of goods and services, is a major plank of this policy. Patronising made-in-Nigeria goods and services is also key to the success of the policy.

    “In this regard, I can boldly say that Abia State is a pacesetter.

    “Today, the state supplies high-quality military boots to our military, and that is just one of such impressive ventures by the state. So, while the state is boosting local production of goods and services, the military is patronising made-in-Nigeria goods.

  • Senate probes alleged irregularities in award of road contracts by BPP

    Senate probes alleged irregularities in award of road contracts by BPP

    THE Senate yesterday mandated its Committee on Public Procurement to investigate alleged irregularities in award of multi-billion road contracts by the Bureau of Public Procurement (BPP).

    This followed the consideration and adoption of a motion on “Irregularities in the award of contracts by the BPP”, sponsored by Dino Melaye (Kogi West).

    Senate President Bukola Saraki gave the committee one-week to turn in its report.

    Melaye, in his lead debate, noted with concern alleged irregularities in the award of contracts by the BPP.

    He said the Ministry of Power, Works and Housing  requested, vide letters dated November 7 and 15, 2016, from BPP due process certificate to award contracts for 10 and 13 projects for the construction and rehabilitation of roads and bridges under the 2016 budget.

     He observed that the BPP  in accordance with Section 5 and 6 of the Public Procurement Act, 2007, informed the ministry there was no objection to its request but later wrote the ministry that due process certificate of ‘no objection’ cannot be granted in the award of the contracts.

    Melaye noted that the BPP, in contravention of the BPP Act, went beyond its mandate to award the contracts to companies not recommended by the procuring entity.

    He said for instance, “the procuring entity recommended Deux Project Limited for the rehabilitation of Numan-Jalingo road for N11.7 billion, the BPP awarded the contract to Rock Bridge Construction Ltd at N12.8 billion”.

    He added that whereas the ministry recommended the rehabilitation of Nenwe-Nomeh-Nburubu-Nara road project to Don- Machris Global Resources Ltd at N5.1 billion, the BPP awarded it to Arab Contractors Nig. Ltd at N6.4 billion.

    The senate said that although the recommended contract sums by the ministry were high, and ought to have been reviewed downward, the BPP reviewed the contracts upward and awarded the contracts to companies not recommended by the procuring entity in violation of Section 19 of the Public Procurement Act.

    Melaye said he chose only two instances to buttress the alleged abuse of the BPP Act.

    He prayed the Senate to investigate the anomaly.

     Deputy Senate President, Ike Ekweremadu, who seconded the motion, called for caution because of technicalities involved in the construction of roads and bridges.

    “My caution here is that while we are investigating, it should be without prejudice to the continued performance of these contracts so that we can take advantage of the dry season to ensure that our roads are repaired.”

    Senator Barnabas Gemade supported the motion but gave some caution on how the investigation should be done.

    Gemade said: “There are issues that need to be taken into consideration when the committee goes into its own investigation.

    “Road construction today is becoming very important to maintain certain standards because construction in Nigeria is being done in a manner that the roads get destroyed so quickly and there must be strict adherence to certain levels of quality performance.

    “The first three companies appear to have a history of road building. The two that were initially recommended don’t seem to have obvious records, but this is a matter which the committee on procurement should look into very carefully.”

  • BPP: Fed Govt saves N680b in five years

    BPP: Fed Govt saves N680b in five years

    The Acting Director-General, Bureau of Public Procurement (BPP), Mr Ahmed Audu,  yesterday said the Federal Government has saved N680billion in five years through the establishment of the Bureau.

    Audu who spoke on the sidelines of a Procurement Cadre Conversion training for officials of Federal Government agencies, parastatals, Commissions and Institutions, said before the establishment of the BPP, the Federal Government was losing huge sums of revenue because procurement training was being carried out by non-professionals.

    The programme was held at the auditorium of the Administrative Staff College of Nigeria (ASCON), Topo, Badagry, Lagos State.

    “The essence of this training is to build capacity, enhance professionalism, accountability and career development in all officials that are participating in the programme.

    “Before the BPP was established, the training of public servants in procurement was carried out by non- professionals and as a result of that, the government was losing huge sums of money.

    “The government has been able to arrest that problem due to the professionalism of the procurement officers and this has made the government to save N680billion in five years.

    “We will continue to train people so as to be able to block any loopholes and to save the government from revenue loss,” he told The Nation.

    Audu said the procurement cadre conversion training for officials of the Federal Government would help in reducing corruption.

    “The training being given to the officials would help in capacity building, which would bring accountability and in turn help in stemming corruption.

    “The importance of this training cannot be over-emphasised; that is why we have been carrying out this training yearly,’’ he said.

    Audu said  230 officials from various organisations are being trained in procurement during this year’s programme.

    “For the past five years, we have been using ASCON and we have never been disappointed with their facilities and the serene environment.

    “I would recommend all organisations who have any form of training or seminars to make use of this college, and I guarantee that they would not be disappointed,’’ he added.

  • BPP gets new acting DG

    The Bureau for Public Procurement (BPP) has reversed the appointment of Babatunde Kuye as the Acting Director -General of the agency, replacing him with the Director of Agriculture and Water Resources Department at the Bureau, Ahmed Abdu.

    A statement from the BPP and made available to The Nation in Abuja said the reversal followed the discovery that Abdu and not Kuye, was the most senior Director on the Bureau nominal roll.

    The former director General of BPP, Emeka Ezeh who was sacked by the Federal Government alongside 25 other heads of parastatals had handed over the affairs of the agency to Kuye as acting DG.

    The statement said Kuye has since handed over the affairs of the agency to Abdu with a pledge to give 100 per cent support to the new acting DG.

     

  • BPP sets December deadline for e-procurement registration

    BPP sets December deadline for e-procurement registration

    The Bureau of Public Procurement (BPP) on Tuesday directed contractors doing business with the Federal Government to register on the e-procurement database by Decem-ber.

    BPE Public Relations Officers (PRO) Mr. Thomas Odemwingie, who said this in Abuja, noted that the e-procurement platform would help fast-track the procurement process and eliminate fraud.

    “We are trying to register, classify and categorise consultants, service providers and contractors who are doing business with or intend to do business with the government. The whole idea is to ensure that all companies with the same level of competence and also with the same resources are clustered in such a way that they can compete with each other,” he explained.

    Odemwingie said the BPP now has a database, and “we encourage you to register on this database and you will get a code so that when you sign in using that code, people will know about your competencies’’.

    He said with the new process, there would be no need for any physical contact with the procuring entity. The process would also eliminate the whole inter-face that predisposes procurement system to corruption.

  • BPP, BPE bicker over N1.45b PHCN’s liquidation contracts

    BPP, BPE bicker over N1.45b PHCN’s liquidation contracts

    The dust raised by the controversial disbursement of N1.45 billion as consultancy fees for the liquidation of the Power Holding Company of Nigeria (PHCN) Plc. will take more time to settle. The Bureau of Public Enterprises (BPE) and the Bureau of Public Procurement (BPP) – the two federal agencies involved in the unbundling process – are locked in a blame-trading game. Writes Managing Editor YUSUF ALLI.

    DESPITE denial by the Bureau of Public Enterprises (BPE), that it followed due process before disbursing N1.45 billion, the Bureau of Public Procurement (BPP) rejected the award of N929 million contracts to a legal adviser for the winding up of the Power Holding Company of Nigeria (PHCN).

     Also, the payment of N500 million to the Office of the Accountant-General of the Federation (OAGF) as consultancy service fee was not routed through the BPP.

    These clarifications were contained in some documents made available to The Nation against the backdrop of the N1.45 billion fraud which is causing disquiet in the BPE.

    In a statement, the BPE had on Tuesday admitted payment of the curious sums and claimed that the Office of the Attorney-General of the Federation (AGF) in a September 17, 2014 letter titled: (HAGF/BP/2014/Vol.1, withdrew its objection to the award of the legal advisory services for the winding up of PHCN.

    The BPE also said it obtained a “No Objection” letter from the BPP.

    However, a highly-placed source in the presidency said: “Based on the facts available to the government, the BPP did not issue a Certificate of No Objection to BPE for the award of the N929, 613,188.94 for legal service for the winding up of PHCN.

    “Under the Public Procurement Act, no contract can be awarded by any MDA (Ministry, Department and Agency) without a Certificate of No Objection from BPP. The BPE has lied. When was the certificate issued and when was the contract awarded and executed before the payment was made?

    “In fact, the former vice president in his memo of February 23, 2015 to ex-President Goodluck Jonathan only recommended the award of contract of N517, 694, 100.00 to an Asset Adviser (Ora Egbunike Associates).

    “On his part, ex-President Jonathan on April 4, 2015, approved the award of contract to only the Asset Adviser. There is no memo on the legal services and the N500 million consultancy fees.”

    Also, fresh documents obtained by The Nation showed that the BPP on September 22, 2014, and December 24, 2014, rejected the award of the legal service contract.

    The September 22, 2014 memo reads in part:  “This is to refer to your letter dated April 4th, 2014. Please find herewith a revised Due Process Review Report No. BPP/DPR/SP/REPROT/2014/012C dated September, 2014 on the above mentioned project.

    “The Director-General’s attention is further drawn to Section 12.30 of the revised Review Report for consideration and necessary action.

    “In view of the above, Due Process Certificate of ‘No Objection’ cannot be granted to the Bureau of Public Enterprise for the Appointment of Messrs J. K Gadzama & Partners LPP with  N929,613,188.94 for legal services and Ora Egbunike & Associates  with  N517,694,100.00 for asset evaluation.

     “However, Due Process Certificate of ‘No Objection’ can be granted to the Bureau of Public Enterprises only for the Appointment of Messrs Ora Egbunike & Associates with N517,694,100.00.

    “The Legal Advisory Services for the winding up of PHCN is no longer required based on the advice of the Attorney-General of the Federation and Minister of Justice vides letter reference no. HAGF/BPP/2014/VOL.1 dated 11th September, 2014.”

    In another letter on December 24, 2014, the BPP advised the BPE against going ahead with the procurement of the legal service for the winding up of PHCN.

    The BPP, in the letter signed by its Director-General, Mr. Emeka M. Ezeh, said no instruction was received from the AGF nullifying the earlier directive.

     He said the BPP was “therefore constrained by the directive of the HAGF, hence cannot reverse the earlier verdict.”

    The letter said: “The Bureau of Public Procurement (BPP) having examined the request wishes to draw the attention of the BPE to Paragraph 14 of the Honourable Attorney-General of the Federation (HAGF)’s letter to the BPP referenced that; item 1,3,5,6 and 8 of the scope of work for the Legal Advisor unnecessary for the liquidation of the PHCN.

    “Similarly, any of the remaining items 2,4,7 and 9 which are not contemplated by the procedure described in Sections 457 -468 (and there is hardly any contemplated) would equally be unnecessary to accomplish the liquidation”.

    “It can be deduced from the above citation that the HAGF’s position on this procurement clearly indicates that legal advisory service is not needed as all constituent items (1-9) under unnecessary as listed by the HAGF constitute all items under the legal advisory service, as such; no item is left for BPP’s consideration for a further review.

    “Moreover, I am to reiterate my earlier opinion that the proposed engagement of consultants for provision of legal advisory services for the liquidation of PHCN and valuation of PHCN’s non-core headquarters assets is inconsistent with the provisions and spirit of the EPSR Act and the proposed agreement to this effect should not be executed by the parties”.

    This is the conclusion of the HAGF letter, contrary to BPE’s agitation for a revised scope of work.

    “The BPP wishes to further draw the attention of the BPE to Paragraph 2(v) (i) of the minutes of meeting between the Bureau of Public Procurement (BPP) and the Bureau of Public Enterprise (BPE) on engagement of advisers for the winding up of PHCN, procurement for selection of consultants for training and counselling of old employees of PHCN and extension of CPSC Transcom International Ltd (BPE’S adviser for the privatisation of PHCN successor companies) held on Thursday, September 11, 2014, at the BPP Conference Room, wherein, a conclusion was reached that; the BPP will consider reversing its decision on the procurement under reference only when further instruction from the AGF nullifying the earlier directive is received.

    “The conclusion reached at the meeting was consented to by both parties (BPP and BPE), and was in line with the AGF’s letter to the Bureau. Copy of the minutes of the meeting attached herewith please.

    “The BPP wishes to state at the moment, no instruction is received from the AGF nullifying the earlier directive. The BPP is therefore constrained by the directive of the HAGF, hence cannot reverse the earlier verdict.

    “In view of the foregoing, “No Objection” cannot be granted to the BPE to carry out renegotiation with Messrs. J-K Gadzama for Legal Advisory Services for the Winding up of PHCN.”

    The BPE’s unreferenced letter, dated  December 11, 2014, but which was received at the Bureau on the December 19, 2014, requested the BPP to grant “No Objection” to carry out renegotiation with Messrs. J-K Gadzama in line with the new scope of work as advised by the HAGF.

     The BPE’s stated: “We write to draw your kind attention to Paragraph 5 of your letter under reference where it was stated that the legal advisory services for the winding up of PHCN is no longer required based on the advice of the Attorney General of the Federation and Minister of Justice.

    “Please refer to the Paragraph 4 of the letter from the office of Attorney General dated 11th September, 2014 where it was mentioned that; “This is however subject to the fees of the consultant for legal advisory services being reviewed to a realistic sum to reflect the actual services to be rendered mindful of the fact that the liquidation of PHCN is merely notional and will not involve most of the services outlined in the Consultant’s Scope of Work”.

    The Bureau observes that the advice of the Attorney-General of the Federation means proposed a winding up option (voluntary winding up) under sections 457 – 468 of the Companies and Allied Matters Act, 1990 (CAMA). This was also stated in paragraph 12.3.3 of your letter under reference.

    “In compliance with the directive of the Attorney-General of the Federation, a revised scope of work for the Consultant based on his advice has been prepared by the Bureau preparatory to renegotiation with the legal advisory consultant.

     Accordingly, we request you to grant the “No Objection” to carry out the renegotiation with Messrs. J-K Gadzama in line with the new scope of work as advised by the Attorney General of Federation.”

    BPE’s defence

     

     The BPE however explained its position on the N1.45 billion row in a statement by its Head, Public Communications, Mr. Alex E. Okoh.

     The statement reads:  “The BPE therefore wishes to clarify certain misconceptions on some of its transactions as follows:

    •That the contract sum of N929, 613,188.94 – legal fees for the winding up of PHCN.

    •That the National Council on Privatisation (NCP) at its meeting held on Thursday, May 9, 2013, considered and approved the award of a contract to Messrs J.K. Gadzama & Partners as the Consultant, Legal advisory Services for the winding up of PHCN Plc in the sum of Nine hundred and twenty nine million, six hundred and thirteen thousand, one hundred and eighty –eight naira, ninety-nine kobo (N929,613,188.94) only for a period of six (6) months after obtaining a BPP ‘No Objection’.

    •That the Office of Attorney-General had earlier objected to the necessity of the procurement, but later withdrew its objection and endorsed the engagement of Messrs Gadzama & Partners for the legal advisory services vide a letter presented to the NCP ref: HAGF/BPP/2014/Vol.1, dated 17th, September 2014.

    •That consequently, the Council at its meeting held on April 16, 2015, finally approved that BPE should immediately proceed to execute the contract with Messrs J’K’ Gadzama & Partners as the Consultant, Legal Advisory Services for the winding up of PHCN Plc in the sum of N929,613,188.94 based on the “No Objection” earlier granted by BPP.

    •That the legal consultancy is to notate the over 500 court cases pending against PHCN to NELMCO and also provide routes of title to purchasers of PHCN non-core assets as well as wind down PHCN among other terms of reference.

    •That payment of N500million to the Office of the Accountant General of the Federation as consultancy.

    That the OAGF via memos with reference numbers: OAGF/SD/ABJ/247/1V/984 dated October 18, 2013 and OAGF/SD/247/V/1032 dated December 5, 2013, had written to the Office of the Vice President to be reimbursed N500 million as expenses the office incurred for the handling of the payment of the labour liabilities of the workers of the PHCN.”

    The liabilities according to the statement included: payment for the engagement of an Information Technology (IT) consultant, who had been conducting integrity and quality checks on data for payment submitted by the BPE; payment to a consultant, who undertook an IT-based reconciliation between its (OAGF)’s record of payment and reports received from the paying banks and purchase of consumable items like toner, papers, compact disk, flash drive among others stationeries.

    Others were: cost of adverts on the payment exercise in several national newspapers and payment of allowances to staff of the OAGF, who worked overtime including on Saturdays and Sundays to ensure the payments were effected without delay.

    “The OAGF had argued in the memos that the approval of the amount was necessary because of the meagre overhead allocations in their 2013 and 2014 budgets and the exercise had exerted on financial position of the office. Based on this, the NCP gave approval for the disbursement of the sums. Note that government does not pay consultancy fees to its agencies; it only covers the cost of getting the job done.”

  • BPP’s antidote against corruption

    BPP’s antidote against corruption

    The steps taken by the Bureau of Public Procurement (BPP) to make public the contracts so far awarded in 2014 is an appropriate strategy to fight corruption, writes Group Business Editor, Simeon Ebulu 

    The publication by the Bureau of Public Procurement (BPP) in leading national newspapers, showcasing over 270 contracts awarded to several companies in 2014, is a perfect example of exemplary display of transparency and openness in governance. The list which encapsulates contracts from Ministries, Departments and Agencies, and its release, BPP said, is in compliance with Section 5, Sub-section F of the Public Procurement Act, 2007.

    The painstaking effort that went into the compilation of the list, indicating the companies’ names, implementing agencies, project locations, cost of projects, sources of funds and the respective dates of awards of the contracts, as well as the completion periods, underscore the desire of the agency to bring to the public domain, BPP’s stewardship, beyond its being a contract vetting Bureau.

    In the preamble to the publication, BPP called on stakeholders and interested citizens to take cognisance of the  fact of the approving authority, and more importantly, monitor the execution of the projects and ensure that value for money was achieved.  The BPP went ahead, urging that the same approach be adopted by MDAs, so as to ensure that the projects are executed according to specifications and within the given time limit.

    Before now, and until lately when the Federal Ministry of Finance commenced the publication of monthly Federal Allocations to the states as obtained from the Federal Accounts Allocation Committee (FAAC) in selected newspapers, Nigerians were never in the know, as to what quantum of monies went to the states and Local Government Areas.

    One of the reasons given by the ministry in publishing these data and apprise the public of the benefit of being acquainted with these figures, is to make a lie of pronouncements by some public officials, especially at the lower segment of the Executive arm of governance, that they were not getting their due from the centre, and two, to give the discerning public the required platform, not only to monitor developments, but also to be able to hold their leaders and representatives, accountable in the management of public funds that they hold in trust of their subjects.

    Although the question as to whether the measure adopted by the Finance Ministry has yielded the desired results may not receive a-straight-yes answer, the fact that the BPP has taken a cue from it, is an indication that there is some good measure of value to the practice, given that a well-informed public, will no doubt be in a better position to offer advice and criticism, if and when the need arises.

    Before now, Nigerians were only used to hearing about  awards of huge contracts, most times in lump-sum, without necessarily knowing the completion period, and the contractors involved. Some communities and villages may not even be conscious that contracts of this magnitude have been awarded in their domain. Some will even be amazed about the huge sum allocated to projects in their areas and LGAs.

    Part of the beauty and recommendation for this exercise, is that it will help to eliminate contract inflation and over-invoicing. In addition, it will address the practice of abandoned contracts and the incidence of elephant projects that dot the entire nation. Award of frivolous and non-essential contracts will become a thing of the past, as project-bearing communities will now show more than a passing interest in projects domiciled in their areas and LGAs.

    One other clear positive effect of this measure is that it dovetails into the cry in the land of the need to check corruption and abuse of processes. If contracts, awarded over time are brought into the purview of public domain, the expected hue and cry against inflated and abandoned contracts will dissuade people from perpetuating, or engaging in acts inimical to the code of Good Corporate Governance and abuse of processes.

    The oft-repeated resolve of Muhammadu Buhari, who assumed office two days ago as President of the Federal Republic of Nigeria to fight corruption, can be better addressed by adopting this option.

    The leadership of the Bureau of Public Procurement, as exemplified by the Director-General, Engineer Emeka Ezeh, deserves commendation. His reputation as a stickler to due process and unwavering commitment to transparency in the discharge of his duties, his associates attest, are unrivaled and unassailable.

    BPP’s demonstration and openness in making public these contract details (to the consternation of some in positions of authority), it is said, is typical of the man at the helm of affairs. Ezeh, over time, has been known as a modest, unassuming and down-to-earth fellow. He is reputed for pitching his tent with the ordinary Nigerian in the suburbs of Abuja, against what his position (if he wanted to flaunt it) demands.

    This attitude reflects the character trait of what many Nigerians are yearning for and should be carried on-board the ship of the new government.

     

  • N20b Calabar port contract: Firms may sue NPA, BPP

    N20b Calabar port contract: Firms may sue NPA, BPP

    The crisis generated by the award of the N20 billion Calabar channel contract by the Nigerian Ports Authority (NPA) to Calabar Channel Management Limited (CCM), a joint venture of NPA and a firm owned by a Peoples Democratic Party (PDP) senator is not over, it was learnt.

    Some of the firms that bidded for the job, it was gathered, have contracted their lawyers to challenge  the “intrigues and scandals” that led to the cancellation of the procurement process of the contract by the NPA and its subsequent award in defiance of due process.

    The Bureau of Public Procurement (BPP), it was learnt, may be summoned to court over the contract.

    Sources close to some of the firms said they were considering their lawyers because they considered the method adopted by the NPA as unlawful, adding that they may institute a legal action against the two government agencies.

    Calabar Channel Management (CCM) Limited, the firms alleged, was not subjected to a pre-qualification test to ascertain its competence as required by the law before being awarded the contract.

    A senior official of one of the affected firms who craved anonymity said: “The law stipulates that a procurement of such magnitude must pass through the Bureau of Public Procurement (BPP) for a certificate of “No Objection” which is issued after grievances raised by the contending parties have been addressed.  But, through a letter in the last week of August, NPA notified bidders of government’s decision to nullify the re-procurement process for the channel in ‘public interest’.

    “We learnt that NPA was actually compelled by the Ministry of Transport to discontinue with the re-procurement process to avoid   jeopardising the lawmaker’s chances of clinching the job and that is why we are considering the idea of taking the matter to court in the interest of the nation.

    “It was gathered that the senator had about three years ago, latched on the failed 2010 procurement exercise to out-plot all those vying for the job.   Apparently convinced that his firm stood no chance in a competitive bid, he decided to exploit his relationship with the President to bring his dream to fruition.

    “He came up with the idea of a joint venture between his company and the NPA.  Armed with this, he approached the president to seek his assistance in making this a reality. “The president was said to have been favourably disposed to this but asked him to first explore the possibility of getting a company with dredging capabilities to partner with.

    “Help finally came in form of a Presidential Approval, which resulted in the formation of CCM. However, to make it seem as though the Transport Ministry initiated the move, the minister had to write the president asking for approval to form a consortium for the dredging of the channel which immediately received the President’s nod.”

    Officials of the aggrieved firms also said NPA’s equity participation in CCM is only 53 per cent while the senator’s firm has 47 per cent. This, according to them, is unlike other arrangements in which NPA has interest and where the profit sharing formula is 60 per cent for   NPA and 40 per cent for the private firm.

    “We the aggrieved bidders are insisting that the right thing still needs to be done in respect of the Calabar Port or we will head to court to resolve the matter.

    “Only the six bidders that were pre-qualified for the 2010 exercise deserve to be considered for the job.  This is more so as the dredging of the Calabar channel has served as a conduit pipe in the last 20 years,” they said.

    Contacted, a member of the NPA’s board who does not want his name in print said  the joint venture deal was sealed without reference to the NPA board and this, he said, explains why its chairman and the current PDP Board of Trustee chairman, Chief Tony Anineh was against the award of the contract to CCM.

    The board, he said, was infuriated by the deal that its chairman countered in a petition he sent to the Minister of Transport, Senator Idris Umar.

    “In the protest letter, Chief  Anineh on behalf of the board warned of the dire consequences of   awarding such a huge contract to a company, which to us, “has no reference to past jobs done”.

    “Anenih also detailed the irregularities that characterised the creation of CCM including 16 flaws which the Ministry of Justice pointed out in respect of the joint venture agreement and which still appeared in the final document,” the board member said.

    Findings revealed that the public outcry that greeted the creation of CCM and the inclusion of Calabar Port and   Ibaka Deep- Sea Port has forced CCM to remove Ibaka Port from the joint venture agreement.

    The document communicating CCM’s resolution on Ibaka Deep-sea Port to the Corporate Affairs Commission (CAC) was signed by one Odutan  Olumide Abayomi  and  the  senator.

    It reads:  “At  the extra-ordinary  General  Meeting of the above -mentioned company duly  convened and held at its  registered  office on  the12th  of July  2013, the  following resolutions were  proposed and duly  passed as follows:

    That the Memorandum and Articles of Association of  the Company  be altered as follows:

    That all the  clauses i.e. 3(a) (b) (c) (d) (f) and (h) where  the word  Ibaka Deep  Sea  Port appear  be removed  from the  Memorandum of  Association of the  company.

    That the articles of Association of the company be altered to reflect the  above;

    That a Memorandum and  Articles  of  Association  incorporating the  said alterations be  filed with  the  Corporate  Affairs Commission ,Abuja and  a certified true copy of  same  be obtained.

    Calls made to phone of the Assistant General Manager, Public Affairs, NPA, Mr Musa Iliya, were picked but not audible enough while the text message sent to his mobile phone was not replied as at the time of going to the press.

  • Litigations stall due process, says BPP chief

    Litigations stall due process, says BPP chief

    The Director General, Bureau of Public Procurement (BPP),  Emeka Ezeh, lamented yesterday that long delays in tidying up court processes is hindering the agency from discharging its statutory functions.

    He also said the agency has saved N500 billion for the government since it was created.

    Speaking while receiving the National President of the Nigerian Bar Association (NBA), Augustine Alegeh (SAN), who led a delegation of its national officers on courtesy call to BPP’s office in Abuja, he lamented that since it started operation,  it  has only been able to get two court judgements, which were all in its favour.

    According to him, some lawyers still lack good grasp  of the Procurement Act.

    He also told his guests that any contractor who fails to register and is not captured in its database will not be allowed to do business with the government with effect from next year.

    He said: “Long delays in court processes are not helping in deepening procurement processes. The two court judgements we have got so far have been in our favour.”

    “We have been frustrated by the judiciary at times. Many lawyers are not aware of the BPP Act. That is why we distributed 10, 000 copies of the Act to lawyers and judges at one of the NBA conferences.

    “We need sector-specific lawyers because of the low-level awareness of the BPP Act among lawyers. We observe that some senior lawyers get beaten by younger, smarter lawyers who have deeply studied the Act.”

    Ezeh said since 2007 to date, BPP has been able to save N500 billion for the government as the difference between what was applied for by the Ministries, Department and Agencies (MDAs) and what was approved.