Alleged N60bn fraud: NGO asks EFCC, ICPC to probe REA

Alleged N60bn fraud: NGO asks EFCC, ICPC to probe REA

Aug. 15, 2024

Centre for Social Justice Advocacy, a non-governmental organisation, on Thursday called on the Economic and Financial Crimes Commission (EFCC) to investigate an alleged N60 billion fraud in the award of an electrification project by the Rural Electrification Agency (REA).

The petitioners also sought the collaboration of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to unravel the alleged scam.

The Centre claimed that the plot to award the said capital project through selective tender instead of open competitive bidding was against the present government’s anti-corruption campaign.

‘’We hold the view that you are aware that the Federal Government allocated N170 billion to the Rural Electrification Agency in the 2024 budget for various projects, which are to be awarded to qualified contractors in line with the Procurement Act,” it said.

According to Abubakar Abdulraman, the Centre’s Executive Director, the anti-corruption agencies have knowledge of REA’s advertisements of the jobs in select newspapers on two occasions.

‘’What we don’t know is whether you are conversant with REA authorities’ decision to advertise the works in the agency’s budget piecemeal to award over N60 billion worth of contracts,’’ the Centre queried.

Though, the Centre was of the view that ‘’selective tendering’’ is ‘’permissible in an emergency’’, it explained that the contract award was ‘’fraught with corruption, promotes cronyism and hurts government in many ways’’.

This situation, the petitioners said, exposed conspiracy with the contractors and a ploy to allegedly appropriate unspent funds in the budget during the present economic hardship.

‘’It’s therefore unfortunate that officials of government are exacerbating the situations by promoting corruption and favouritism through adoption of selective tendering,” it added.

The NGO implored the anti-corruption agencies to beam their searchlights on the petition to ‘’stimulate the economy for any covert arrangement’’ involving the over N60 billion worth of contracts in REA’’.

But, the procurement agency, while reacting to NAN enquiry, said that due process was always adhered to in the award on contract by its officials, noting that newspaper advertisements were published in May and July for proposals.

The agency disclosed that the opening and evaluation process were ongoing while noting that the tender involved 349 projects.

‘’The agency has concluded the processing of over 150 small value projects awaiting issuance of award letters and about 349 others are at different stages of completion.

‘’All these were done by open advert and the agency’s notice board. The inclusion of selective tendering into the mix would help the agency efficiently manage manpower involved in the procurement process as some of these projects require a high level of expertise to forestall abandonment.

‘’No contracts have been awarded through selective tendering, however, selective tendering is a legally allowed process of contract award in line with Section 40 of the Public Procurement Act, 2007 (PPA 2007)’’, the agency’s management added.

On the identity and qualification of benefiting contractors, the agency said that ‘’the procurement process is still ongoing and no conclusive list can be generated at this point’’.

To ensure transparency, the agency said bids were publicly opened in the presence of bidders or their representatives who sign off on the process by signing the Bid Return Sheet.

The agency revealed that observers were always duly invited to be part of the process in line with Section 19 of the Public Procurement Act, 2007, to ensure transparency and accountability in contract awards and implementations of projects. (NAN)