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EFCC Hq Contract: Another Executive, Colossal Fraud in the Offing?

December 14, 2010

On Wednesday November 24, during the weekly Federal Executive Council (FEC) meeting, the Council approved a colossal sum of N18bn (eighteen billion naira) for the construction of the new 10-Storey building to house the Headquarters of the Economic and Financial Crimes Commission (EFCC), in a memo presented to FEC by Alh. Yayale Ahmed, the Secretary to the Government of the Federation.

On Wednesday November 24, during the weekly Federal Executive Council (FEC) meeting, the Council approved a colossal sum of N18bn (eighteen billion naira) for the construction of the new 10-Storey building to house the Headquarters of the Economic and Financial Crimes Commission (EFCC), in a memo presented to FEC by Alh. Yayale Ahmed, the Secretary to the Government of the Federation.

Julius Berger, the German construction giant was named as the contractor with 38-month duration, approximately three years from the time of approving the contract by President Goodluck Jonathan. A ‘No Objection Certificate’ by the Bureau of Public Procurement (BPP) was said to have been issued for the contract.

Though details of the award process is unknown yet, already there are worries even among FEC members about the engineering concept and final cost of the project as reported exclusively by Newsdiaryonline.com on in their December 10 edition. Such fears were said to have been allayed by the Director General of BPP, Engr. Emeka Ezeh who gave assurances that “any difference (in the engineering concept and cost) would be recouped at the point of payment back to the treasury”

While Nigerians are not fooled by the statement of Engr. Ezeh above, the immediate implication is that there is a clandestine design for him to remain in the office for the next three years when this contract is expected to last, so he could ensure “the difference is returned to the government’s treasury”. Other concerns arising from this award is the involvement of the EFCC under Farida Waziri, the Bureau under Engr. Ezeh, the contractor, Julius Berger and the FEC. And the most common question on the lips of everyone is ‘Why Julius Berger again? And why would a No Objection Certificate be issued to a contract that raises doubts?

Only in April this year, Nigerians and the international community were jolted by the fraud involving BPP, Julius Berger and the Ministry of Aviation as exposed on the floor of the National Assembly. An exclusive, independent report by NGO Network which highlighted the fraudulent award of the airport contract, assisted in the final cancellation of the contract by the President in May. The Presidential Project Assessment Committee (PPAC), EFCC, Presidency and the National Assembly received copies of the Report. Less than six months away from that ‘open robbery’ of our nation’s resources, Nigeria is being informed again of another contract involving the same actors, now also involving the nation’s anti-graft agency, EFCC.

The controversial award of the N63.4bn Second Abuja Airport Runway Contract to Julius Berger which quoted N72bn earlier as against other contractors – PW Nigeria, Arab Contractors and Dantata and Sawoe had the Bureau in the center of the deal, is still fresh in our minds. The revelation by Mr. Richard Aisebeogun, the Managing Director of Federal Airport Aviation Authority (FAAN) and the then Minister of Aviation, Mr. Adetokunbo Omotoba are on record and cannot, and should not be wished away so soon.

It is no longer news that the in-house costing for the Airport Runway Project (ARP) was N26bn based on the Bill of Quantity (BOQ) as against Julius Berger’s N72bn and PW Nigeria Limited had quoted N30bn, the closest to the original cost. It was then a shocking Minister Omotoba to Nigerians that he was surprised that the contract was not awarded to PW Nigeria Limited despite meeting all the requirements and especially with the lowest cost.

One of the glaring outcomes of the public hearing conducted by the House of Representatives Committee on Aviation on the ARP was that Bureau is involved in many contract controversies, including the unresolved N8.3bn NTA Outside Broadcasting (OB) Vans Saga, the 2.3GZ National Communication Commission Licensing Round and other ongoing issues in the courts.

With the involvement of the Bureau, EFCC and Julius Berger in this new contract, the questions are whether EFCC awarded this contract and seek for approval from the FEC? If this not another fraud in the making, what is the interest of the FEC in contract awards as queried by Nigerians in the past? Could this be the reason why the President has failed to inaugurate the National Council on Public Procurement till date? And will Nigerians ever get value for money as enshrined in the Public Procurement Act under the present crop of leaders?

My urgent advice is for EFCC to come out with a clear statement on this contract for Nigerians to know how this contract was awarded and at what actual cost to avoid similar event involving the Bureau, Julius Berger and the Aviation Ministry.

Signed
Mohammed Bougei Attah, Managing Editor, NGO Network magazine, monitoring public procurement corruption in Nigeria

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