Budget Tracking and Public Accountability (BudgIT), has tasked the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and other Related Offences Commission (ICPC) to as a matter of national concern, commence investigation into an alleged misappropriation of public funds of N9.3billion by the Minister of Works, Chief David Umahi.
BudgIT stated that the Minister, a former governor of Ebonyi State, went contrary to laid down public procurement rules by approving the payment of N9.3Billion to a Micro Finance Bank (FIMS Microfinance Bank Limited) for the rehabilitation of 62 road projects and other construction works.
It noted that in spite of the fact that FIMS Microfinance Bank is a financial institution, it however did not qualify to handle such jobs.
BudgIT in a report it released on Friday,said that the Federal Ministry of Works under Umahi awarded road construction, computer supply and installation, classroom block construction, borehole and solar energy procurement and installation contracts to FIMS Microfinance bank.
The report by BudgIT further stated; “Some of these projects, as revealed on the Govspend platform, include the payment of N1.4billion in September 2023 for the construction of Yaba-Yangoje road in the Federal Capital Territory; the payment of N1.2billion in October 2023 for the rehabilitation of a 2km road from Oraiwo-Boroboro-Oke Medina School of Science Road in Atiba, Oyo State; the payment of N1.2billion in October 2023 for the rehabilitation of Kosobo-Awe junction road in Oyo East LGA in Oyo State; and the payment of N1.2billion between August and November 2023 for the rehabilitation of Ejule-Otukpo road in Benue State to mention a few”.
It said that other contracts included an N67.2million contract for the construction of 40nos hand pump boreholes in Ebonyi North Senatorial District; N64million contract for the supply of computers to the offices of the Federal Ministry of Works; N19.2million contract for the renovation of a Housing Estate in Enugu State; N58.8million contract for the building of classroom blocks in Katsina North Senatorial District; N12.7million contract for the construction of 2-bedroom contract in Katsina State among several other contracts approved and fully paid by the ministry in favour of the FIMS Microfinance Bank.
BudgeIT therefore said that as a financial institution, the award of road construction contracts among others to FIMS Microfinance bank company was a clear violation of the Public Procurement Act 2007, specifically s.16 (6) (a) (i), (iii) and (iv) which stated; “All bidders in addition to requirements contained in any solicitation documents shall: (a) possess the necessary: (i) professional and technical qualifications to carry out particular procurements; (ii) financial capability; (iii) equipment and other relevant infrastructure; (iv) shall adequate personnel to perform the obligations of the procurement contracts.”
“We request that the Honourable Minister of Works, David Umahi, tenders an explanation to Nigerians on how these repeated violations and infractions occurred in his office.
“In addition, we call on the Bureau of Public Procurement to review the transactions for violating the public procurement Act 2007 and serve appropriate sanctions for breaches where identified.”
Speaking on the development, the BudgIT Country Director, Gabriel Okeowo, stressed that public funds should be treated with highest level of caution and sense of responsibility to the collective interest of Nigeria and Nigerians.
Okeowo said that BudgIT has therefore sent a request letter to further scrutinize the controversial transactions in line with laws guiding such public transactions in Nigeria.
In the words of Okeowo; “We have submitted a Freedom of Information (FOI) letter to the minister, seeking the procurement documents related to these payments to assess whether the transactions complied with the law and anticipate a response within seven days as the FOI Act mandates”.
BudgIT noted that the transactions took place barely three months on resumption of Umahi as minister of works following the exit of Mr. Babatunde Raji Fashola as Minister of Works.
