The Acting Managing Director of Niger Delta Development Commission (NDDC), Mrs Ibim Semenitari, has said the commission spent N9.2 billion on projects between January and March.
Semenitari spoke yestrday on the News Agency of Nigeria’s (NAN’s) Forum in Abuja.
She said: “As at January 1, our balance was N9.9 billion. Within this period, that is January to March, we received N6.8 billion from the Federal Government and N32 billion from oil firms. So, the inflow was about N48.9 billion.
“These are the expenses we have made: Recurrent payment, including salary and allowances as well as other expenditure, stood at N7 billion and payment for projects stood at N9.2 billion.
“There was no accusation of any capital fixed asset within the period under review. So, the expenditure within the period under review is N16.3 billion.”
The NDDC chief said the cash balance as at March 25 was N32.26 billion.
She said: “This means that when I make payment this week or next week, it means that has taken to the second quarter.”
The acting managing director noted that before the commission paid any contractor, it processed the interim payment certificate.
“The way we pay, we process the interim payment certificate. And then the number of interim payment certificates that has been processed for payment is 153. But we have worked more these numbers.
“Those that are still in the process, action is being taken on them; some of them have treated 493 interim payment certificates.”
Mrs Semenitari said the commission paid 642 of 8,600 contractors.
She said: “Basically, what I am saying is that I have addressed over 600 contractors. In other words, 600 projects have been treated. We have been able to complete about 28 projects within this period.”
The NDDC chief said the biggest challenge she had, “was the fact that we are owing so many people”.
According to her, the commission was owing more than 8,600 contractors between N400 billion and N450 billion.
She said paucity of funds, coupled with the public perception of the commission, became sources of concern for the management.
But she said NDDC dealt with both challenges and re-invigorated the workforce.
Mrs Semenitari said: “The biggest challenge we had, on assumption of office, for me, was the fact that we were owing so many people. We were owing more than 8,600 contractors and we are owing between N400 billion and N450 billion.
“That’s a lot of money. So, the first challenge was you had so many contracts and you had so much debt: there was a big hole right there.
“The second was the perception problem. The commission was perceived – rightly or wrongly – as a place you just come, take your share and go. It was also perceived to be a corrupt place.
“And we also had to deal with the need to professionalise the workforce. Basically, in terms of how you reposition the people. We also had to reinvigorate the workforce so that people would have a sense of freshness and a sense of new challenges because we could get people back on track.”
According to her, better days will come for the commission by the time its funding partners pay their debts.
Mrs Semenitari noted that with the payment of the outstanding funds, the projects the commission was handling would become visible.
The NDDC chief said the late passage of the commission’s budget hampered its proper planning and management.
She said: “By law, we are funded with three per cent from oil companies; we are funded from the ecological fund and we are funded from money accruable to states.
“We had a situation where we were owed by our funding partners. The Federal Government, which is our owner, was owing us about N800 billion.
“Whereas the law provides for specific kinds of funding for the commission, unfortunately the commission had not been receiving its funds as at when due. So, this was one of the challenges I had to deal with.
“And then, of course, perhaps the last and the critical one is the fact of late budgets. The NDDC budget is always late, and that doesn’t help for planning. It comes so late in the year; indeed, I hear sometimes as late as October, by which time the year is ending. That’s because the NDDC budget, by the budget practice, doesn’t go with all other budgets.
“For that reason, the budget process of the NDDC begins after and so terminates ridiculously late in the year, by which time, of course, by planning and everything, it makes it almost ridiculous and impossible for management to function within the appropriation act.”
Mrs Semenitari called for a speedy budget to ensure its smooth operation.
The NDDC acting MD urged Niger Delta residents to protect contractors handling projects in the region.
She spoke about the killing and kidnapping of construction personnel working on the Ogbio-Nembe Road.
Mrs Semenitari urged the people to understand that “we need safety to drive development”.
