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Tag: Bureau of Public Procurement (BPP).

  • Price Checker: FG introduces digital platform to prevent procurement frauds

    The Efficiency Unit of the Federal Ministry of Finance and Bureau of Public Procurement (BPP) in its bid to ensure uniformity in procurement across Ministries, Departments, Agencies (MDAs) have created the Price Checker platform.

    The Price Checker platform being digital and web-based, enables vendors of non-customised goods to upload the prices of their goods for use by all MDAs and governments in their processes of public procurement.

    The Head, Regulation and Database Department, Bureau of Public Procurement, Mr. Aliyu Aliyu, at a sensitisation programme on Price Checker and e-Procurement jointly organised by Efficiency Unit and BPP, said “Price Checker is a platform that will allow product vendors to upload their prices so that our procurement will be more transparent such that government should not spend money on expensive items.”

    According to him, Price Checker platform became inevitable with the introduction of GIFMIS which revealed serious disparity in rate of procurement among MDAs.

    “This way everybody will have idea of what prices are and when we publish procurement record, anybody can check and raise concerns.

    “By the time we do a review of an agency’s procurement and discovered that you purchased items far higher than what was the trend at a particular time, you will get a query or we asked EFCC to visit you. The price checker is just a check to ensure efficiency. We are aware that prices cannot be exactly the same but they should not be unreasonably higher,” he said.

    He gave the assurance that the Public Procurement Act has already taken care of suppliers has taken care of their interest in cases of payment delays.

    Aliyu further added that: “The system is not expected to procure and not pay suppliers promptly. There is the delay payment clause in the public procurement Act where after 60 days of supply, government ought to pay interest on delays.

    “With that clause invoked, we expect that we don’t give contracts when there is no money to pay for it. There is a punitive clause in the public procurement Act whereby after 60 days without payment, a contractor or supplier can invoke.”

    The Head, Efficiency Unit, Mr. Ojonimi Imaji, in his opening remark, noted that governments at all levels are facing paucity of funds in discharge of their constitutional responsibilities as they are webbed by heavy financial burden.

    According to him, “This has made government to become inquisitive to explore and use all relevant avenues that will allow for transparency in its transactions and to have an improved revenue generation to be able to fund critical projects and programmes that will be beneficial to citizens.”

  • BPP to utilize modern technology in public procurement

    The Bureau of Public Procurement (BPP) will henceforth utilize modern technology in public procurement to further the reform process.

    The Director General of BPP Mamman Ahmadu, made this declaration at the Zonal Stakeholder Workshop on the Development of the Category Matrix for the National Database of Contractors, Consultants and Service Providers (CCSP) in Abuja Tuesday.

    He stated that the whole world is going “E” in the public procurement process; Nigeria has also joined the rest of the world to ensure that the best global practices in public procurement process is strictly adhered to by going digital in order to allow for more participation, efficiency and transparency to ensure that the public procurement reform receives the needed attention and to deliver ultimately for the good of the country.”

    Mamman Ahmadu advocated for all “professional bodies to be fully involved in the reform process.”

    He stated that; “the Public Procurement Act (PPA, 2007) Sections 5j, 5q and 6j dictate the need for Classification, Categorisation of Federal Contractors, Consultants and Service Providers (CCSP) in order to enhance specilalisation, high performance in public procurement and reduce cost of tendering.”

    Suleiman Hassan Zarma, the Minister of State, Works also lent his voice to emphasize the critical nature of the Categorisation Matrix stating that it will allow for a more robust participation of all stakeholders to give room for specialisation in their different fields of expertise.

    He also mentioned the need to ensure that in the categorisation matrix, that “the local contractors are also considered due to their fundamental role in the infrastructural development process of the country.”

  • Agency probes senator’s $34.5m deal with NPA

    Agency probes senator’s $34.5m deal with NPA

    A Senator is in trouble over a curious $34.5million contract awarded to a firm allegedly owned by him. The Nigerian Ports Authority (NPA) awarded the contract during the administration of ex-President Goodluck Jonathan.

    The contract was part of the dredging of the Calabar Access Channel by the Calabar Channel Management Limited (CCM), with Niger Global Engineering and Technical Company Limited.

    But all efforts by the new NPA management to find the details of dredging for the period during which CCM claimed to have dredged the Calabar Access Channel (November 2014 to January 2015) have proved abortive.

    NPA is seeking the approval of its Board of Directors to terminate the contract.

    The Economic and Financial Crimes Commission (EFCC) is, however, probing the payment of $12,500,000 to the senator’s company.

    The former Director-General of the Bureau of Public Procurement (BPP), Mr. Emeka Nzeh, in a May 18, 2015 memo to Jonathan, said the former President was not “properly informed” by a former Minister of Transport,  Sen. Idris Umar, about the contract.

    But a plot was hatched to divert the attention of Nigerians from the ongoing investigation with a declaration by the Senate Committee on Customs, Excise and Tariff on July 17 that about 282 ships were missing from the nation’s ports between 2010 and 2016.

    According to a document obtained by our correspondent, the said contract was in respect of a Joint Venture to “manage the dredging of Calabar Channel.”

    Although the idea of the contract was mooted in 2004, the NPA began the implementation in June 2010 through a public tender, which led to the pre-qualification of six companies.

    But in November 2012, the BPP made a representation to Jonathan and secured approval for selective tendering.

    It was learnt that the Chief of Staff to the then President, in a memo to Jonathan, requested that “the capital dredging of the Calabar Channel be re-procured.”

    Despite the fact that a procurement process was ongoing, the Minister of Transport on September 13, 2012 sought Jonathan’s approval to “appoint a consortium led by the Niger Global in conjunction with NPA using the Special Purpose Vehicle (SPV), known as Calabar Channel Management Limited (CCM) to manage the Calabar Channel without following due process.”

    Jonathan approved the Minister’s request on 6th November 2012 and the approval was conveyed to the NPA by the ex-Minister on November 26, 2012.

    The management of NPA, led by Hajiya Hadiza Bala Usman (the Managing Director) has discovered that the contract was fraught with irregularities.

    It was learnt that apart from the Board of NPA, the EFCC is already looking into the deal, including the roles played by the senator.

    A document obtained by The Nation gave an insight into how the contract was awarded in curious circumstances.

    The document said: “In line with the approval of Mr. President, the following actions were taken: The Honourable Minister of Transport by a letter with reference No. T.0160/S.107/IX/2632 dated 20th November 2013, directed the Authority to convene the inaugural meeting of the Board of the CCM within two (2) weeks to discuss the modalities for the operation of the company.

    “The Authority received a further directive from the Federal Ministry of Transport to prepare for the flagging-off ceremony of the CCM.  The Honourable Minister of Transport on behalf of Mr. President held the flag-off ceremony on 17th October 2014.

    “After the flag-off ceremony, a second preparatory meeting was held on the 29th October 2014. The meeting discussed issues relating to staff recruitment, amendments to sharing ratio, 2014 Work Plan as approved in the NPA 2014 budget, 2015 budget of CCM, pending the ratification of particulars of directors.

    “CCM subsequently submitted an invoice for fourth quarter 2014 in the sum of US$19,972,673.62 (Nineteen, Million, Nine Hundred and Seventy-two Thousand, Six Hundred and Seventy-three Dollars, Sixty-two Cents) and US$14,593,324.59 (Fourteen Million, Five Hundred and Ninety-three Thousand, Three Hundred and Twenty-four Dollars, Fifty-nine Cents) for first quarter 2015 amounting to US$34,565,998.21 (Thirty-four Million, Five Hundred and Sixty-five Thousand, Nine Hundred and Ninety-eight Dollars, Twenty-one Cents.

    “The Authority (NPA) made a payment of US$12,500,000.00 (Twelve Million, Five Hundred Thousand Dollars) only.

    “Further processing of payment was suspended by the Authority due to the investigation being carried out by the Economic and Financial Crimes Commission (EFCC) following a petition received by it against CCM.

    “The EFCC subsequently directed the Authority to engage the services of a reputable audit firm to undertake a forensic bathymetric survey to verify the dredging claimed to have been done. A firm was engaged and is retained accordingly.”

    An inquiry conducted by the Hadiza Bala Usman’s administration in NPA revealed the following:

    “The Authority has consistently maintained that maritime activities in the Calabar Channel is low and cannot sustain a JV arrangement that would establish a channel management company as obtained in the Lagos and Bonny channels.

    “This was also the position of the Consultant that the Authority appointed in 2004. The position has not changed. We are however of the opinion that a model that is financially prudent should be explored;

    “The procurement process that brought about CCM was reviewed and described as flawed by the Bureau of Public Procurement. The recommendation for the appointment of Niger Global Engineering Limited as the JV partner for the Calabar Channel was done by the Federal Ministry of Transport unilaterally without the technical input of the Authority, including all recommendations to Mr. President.

    “CCM was incorporated after the procurement process for the Calabar channel managers had begun. As stated by the Bureau of Public Procurement (BPP) in their memo referenced BPP/PRES/2015/013 of 18‘“ May 2015 to Mr. President, “it appears as if Messrs CCM was surreptitiously incorporated for the purpose of obtaining this contract without competition”.

    “All efforts to find details of dredging activities for the period during which CCM claimed to have dredged the Calabar Access Channel (November 2014 to January 2015) proved abortive. The Harbour Master and Port Hydrographer during the period stated they were i unaware of any dredging undertaken by CCM during the period. Further, there was no communication between the company and the Port Management on their purported dredging activities during the period.

    “The information available regarding the movement of dredging equipment relating to CCM is as follows:

    • That the Dredger ‘MV Atlantico Due arrived Calabar on 16″” October 2014 and berthed at Intels Terminal for the flag-off ceremony and left immediately after the ceremony on 18‘“. October 2014.
    • That on 12th November 2014, a survey boat ‘MV Hurricane arrived Calabar and anchored mid-stream for a while then left without recourse to the Port Management.
    • That ‘MV Waterway’ arrived Calabar on 19th November 2014  and subsequently disappeared without any recourse to Calabar Port Control/Management and without applying or obtaining the requisite sailing clearance and till date, there is no communication on the where about of the dredger.
    • That on 29th August 2015, the dredger ‘MV Atlantico Due arrived Calabar Fairway Buoy but was not allowed to enter the port for security reasons pending completion of necessary documentation. However, no documentation has been done in that regard till date.
    • That on 1st September 2015, ‘MV Hurricane’ arrived Calabar without any documentation. The port signal station directed the vessel captain to ensure necessary documentation with the port was done but the vessel left without responding.

    “Thus, after careful examination of the Authority’s overall dredging data/vessel movement in conjunction with inputs from the Authority’s relevant personnel, it is questionable if any dredging actually took place.

    “The Director General of the Bureau of Public Procurement in his memo on 18th May 2015 to the Mr. President stated:  “Your Excellency, I am of the humble view that you were not properly informed by the Hon. Minister of Transport’s letter ref T.016/S.107/IXI dated 10th June 2014.

    An EFCC source said: “We have received complaints about the JV contract and a senator has a case to answer.

    “We are already scrutinising all documents relating to the JV and payments made to the senator’s firm.

    “Our main target is to recover public funds collected for job not done. The Senator and all those involved in the contract will be questioned by our team.”

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

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

    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 require997d under 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.”

    The plaintiffs argued that the review allegedly effected on the contract sum by the BPP was unlawful, contending that under the Public Enterprise (Privatisation and Commercialisation) Act, the National Council on Privatisation (NCP), through the 2nd defendant (BPE) is the final authority in the award of such contracts.

    They also faulted the petitions written by the BPP on June 17, 2015, to the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other related offences Commission (ICPC), querying the transparency of the contract award process and sought its investigation.

    The plaintiffs want the court to either restore the N2,864,349,600 contained in the original bid they submitted or the N1,786,287,040, “being the initial negotiated fee between the 1st plaintiff (J.K.Gadzama LLP)  and the 2nd defendant (BPE) “as the binding contract sum for the provision of legal advisory services for the liquidation of PHCN.”

    In its counter-affidavit, the BPP stated that it refused to issue a “certificate of no objection” (approval) for the award of the contract in line with its statutory functions and pursuant to the advice of the Attorney General of the Federation (AGF), who faulted the contract.

    Court documents revealed that the AGF, in a letter dated September 11, 2014, said any approval of the contract should be subject to review on the scope of work to be done, “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.

    “Items 1, 3, 5, 6 and 8 of the scope of work for the Legal Advisory Services, as contained in Appendix B of the Draft Agreement are unnecessary 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.

     

  • Reps to investigate BPP for allegedly aiding corruption 

    Reps to investigate BPP for allegedly aiding corruption 

    The House of Representatives is to investigate reasons behind the inability of the Bureau of Public Procurement (BPP) to enforce its powers in the discharge of its duties.

    The agency was established in 2007 and vested with powers to harmonize existing government policies and practices on public procurement in order to ensure probity, accountability and transparency in the procurement process.

    It was also expected to establish pricing standards and benchmarks and ensure the application of fair, competitive, transparent, value-for-money standards and practices in the procurement process.

    However, Afe Olowookere (APC, Ondo), while moving a motion on the issue noted that the agency has failed in its mandate thereby inhibiting Federal Government’s efforts against corruption.

    He said: “We have seen situation where government contracts and projects that are of similar nature and content sited in the same vicinity are given out by Ministries, Departments and Agencies (MDA’s) at prices that are at variance with what can be considered as standardized prices or thresholds under the principle of international best practices.

    “This is inhibiting Government’s efforts in fighting corruption.

    “We are also cognizant of the fact that the widespread breach of the provisions of the Public Procurement Act, 2007 by the MDAs without any proven corrective measures taken or sanctions imposed by BPP renders its existence a waste on the finances of Government”.

    The motion was unanimously adopted after it was put to a voice vote and the Committee was given six weeks to carry out the assignment and report back for further legislative action.

     

  • Senate probes alleged irregularities in award of road contracts

    Senate probes alleged irregularities in award of road contracts

    The Senate Thursday mandated its committee on Public Procurement to carry out a comprehensive investigation into 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 Senator Dino Melaye (Kogi West).

    Senate President, Abubakar Bukola Saraki, gave the committee one week to turn in its report for the consideration of the Senate.

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

    He said that desirous to award contracts for 10 and 13 projects for the construction and rehabilitation of roads and bridge projects in the first and second batch of road and bridge contained in the ministry’s 2016 budget implementation, the Ministry of Power, Works and Housing requested vide letters dated 7th and 15th November, 2016 respectively, the BPP for due process certificate to award contracts for 10 and 13 projects for the construction and rehabilitation under the 2016 budget implementation.

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

    He noted that although the recommended contract sums by the Ministry were already high, and ought to have been reviewed downward, the BPP went ahead and reviewed the contracts upwards and subsequently awarded the contracts to companies not recommended by the procuring entity in violation of Section 19 of the Public Procurement Act.

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

    He prayed the Senate to investigate the anomaly in the interest of due process.

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

    Ekweremadu said, “I believe that if our committee goes into this, they will find out the details of what happened but the point I need to make here is that our procurement process needs to be sensitive to our season.

    “Presently we are in dry season, so if contracts were awarded for road construction I believe that whatever investigation we are doing should not prejudice the continued performance of that contract because if we do, it means that by the time we enter the rainy season this people will not be able to work again.

    “In the past some of our investigation will stalled the work of government because if you recall the issue of the second runway was stalled because of the investigation we had here.

    “The same thing happened to power sector reform. We are rolled back a couple of years because of the investigation in the House of Representatives carried out in the power sector.

    “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 also supported the motion but gave some caution on how the investigation should be done.

    Gemade said, “I rise to also lend my voice in support of this motion and also just reiterate a little caution on the issues involved. The committee to investigate is specific that is by the recommendation of the motion committee on Public Procurement.

    “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.

    “I caution that technical issues should be considered very critically in looking at this matter.”