SPECIAL REPORT: How Niger-Delta Minister, Akpabio Disbursed ₦2.5 Billion For “Nameless Projects”

The Ministry of Niger-Delta, headed by Godswill Akpabio awarded contracts to companies that did not meet the basic requirements set out in Section 16 (6) of the Public Procurement Act, 2007.

Non-descriptive and double payments topped the Ministry of Niger-Delta Q1 (2020) transactions a Dataphyte report has shown.

In this lieu, experts are calling for sanction of MDAs violating the Open Treasury Portal Guidelines and Public Procurement Act.

The Ministry of Niger Delta doled out ₦2.5 billion in the first four months of 2020 to different contractors without stating descriptions for the payment, violating the Fiscal Responsibility Act, 2007 and the Open Treasury Portal (OTP) guidelines.

In recent times, MDAs have shown disregard for the value of money, captured severally in Dataphyte’s reportage; documenting instances of these government parastatals contravening financial regulations or the open contracting guidelines.

For instance, one of the companies, ‘Discount One Nigeria Limited’ received the sum of ₦42.5 million on March 27 2020, and on the 29 of the same month, the Niger Delta Ministry paid the same amount to the company.

The story is the same for Tunal Resources Limited, who got ₦59.9 million on March 27, 2020; receiving the same amount three days later.

Tosamila Global Resources Ltd received payment of ₦35.9 million on 27 March 2020 and 28 as well. The sum of ₦19 million was also paid twice to the company on March 27 and 28.

Again, the Federal Inland Revenue Service (FIRS) received a whopping sum of ₦77.3 million within 24 hours from the Federal Ministry of Niger Delta.

Breakdown of money received by the FIRS on March 27, 2020

Subsequently, on March 28, FIRS received  ₦17,432,274; ₦11,611,255; ₦20,455,091 which summed up to ₦49,498,620.

The same payment pattern was noted on April 1 as checks by Dataphyte revealed that the FIRS received three payments on the same day, which amounted to ₦35.8 million (₦35,857,473.46).

As if making non-descriptive and double payments were not enough, the Ministry of Niger Delta contravened Section 16(6) of the Public Procurement Act, 2007 by awarding contracts to companies that did not meet the basic requirements set out in the Act.

Some of the requirements include company registration, remittance of federal taxes, payment of workers’ pension, social security contributions.

List of contractors the Ministry of Niger Delta awarded contracts in 2020 violating Section 16(6) (d) of the Public Procurement Act, 2007.

Economic and Regional Implications

Worse still, the more significant implication of these unaccounted expenditures become apparent when you preface the existing challenges facing the people in the region; difficulties that hinder access to basic amenities for the everyday man in the Niger-Delta.

Accordingly, disbursing these funds in opacity raises questions on Akpabio’s ministry and their emphasis.

Rather than transparently manage the funds to alleviate the people’s economic decadence, the Ministry looked the other way and spent a whopping sum of ₦2.5 billion on nameless projects.

Meanwhile, the World Bank estimates that 15 – 20 million people may fall below the poverty line by 2022 in Nigeria, owing to the novel virus.

And given the current difficulties Niger-Delta residents face, it is not a stretch to surmise them taking a hard hit from the UN’s predictions.

To that end, a fiscal impropriety by the Ministry of Niger-Delta is not a mistake residents can afford.

“Cases should be properly highlighted and followed up judiciously with the Anti-corruption” – Expert

Echoing the preceding notions was Mr Olanrewaju Suraju, who decried the trend on non-descriptive and double payments by government parastatals.

The Chairman, Human and Environmental Development Agenda (HEDA) added that these acts hindered the OTP goals set up in 2019 by President Buhari.

On the way forward, Mr Suraju suggested more collaborative work between the media and Civil Societies Organizations.

“Going forward, it is important that the media will work more with the Civil Societies Organizations so that many of these cases are properly highlighted and followed up judiciously with the Anti-corruption agencies.

“Similarly, the Auditor-General’s office has to ensure that the culprits cannot get away with their deeds. The companies that are acting as collaborators should also be brought to book”. – Mr Olanrewaju Suraju, Chairman, Human and Environmental Development Agenda (HEDA).

(Source: Dataphyte)

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