The state government gave a N233.466 million contract to a firm that was not registered with the Corporate Affairs Commission (CAC) at the time the contract was awarded.
The Delta State government has violated its procurement laws while awarding a contract to a prominent traditional ruler in the state.
The state government gave a N233.466 million contract to a firm that was not registered with the Corporate Affairs Commission (CAC) at the time the contract was awarded.
Details on the state’s Open Contracting Data Standard (OCDS) portal showed that on March 30, 2022, a contract for the construction of a landing jetty and waiting shed at Akugbene town in Bomadi Local Government Area was awarded to Fabregha Ventures International at the cost of N233.466 million
However, as of the time the contract was awarded, Fepregha Ventures International was not registered with the CAC, a report by Dataphyte revealed.
Fepregha Ventures International was registered with the CAC on June 8, 2023, under the business name classification. Hence Fepregha was registered with the CAC 15 months after winning the landing jetty and waiting shed contract. This is in total violation of the procurement laws, according to lawyers.
A legal expert, Dr Sam Oyigbo, said any company not registered with the CAC does not exist in the eyes of the Nigerian laws.
Checks at the CAC showed that the organisation is owned by Mr Kalanama Perediegha Luke.
Further checks showed that Mr Kalanama Perediegha Luke is the Pere of Akugbene-Mein Kingdom and the first vice-chairman of the Delta State Council of Traditional Rulers. Hence he is the traditional ruler of Akugbene-Mein Kingdom.
In October 2022, the Delta State governor, Dr Ifeanyi Okowa, commiserated with the Pere of the Akugbene-Mein Kingdom over the death of his wife.
On July 8 2023, the incumbent governor of the state, Sheriff Oborevwori, congratulated the monarch on the occasion of his 57th birthday.
Traditional Ruler Wins Contract In His Domain
Checks showed that the Bomadi Local Government Area (with a population of over 131,000 persons) – where the land jetty and waiting shed would be constructed – is within the domain of the Pere of Akugbene-Mien Kingdom.
This also explains why the contract award to his company raises eyebrows.
Bomadi residents have complained of a lack of government presence, and projects such as the land jetty and waiting shed are expected to have a significant impact on the people.
Bomadi is largely a riverine area.
The exact locations for the land jetty and the waiting shed in Bomadi LGA were not mentioned; nevertheless, in July 2023, residents of Bomadi LGA lamented the impact of erosion on their community.
According to National Geographic, jetties can act as “barriers against erosion from current, tides and waves.”
Experts believe that awarding a contract such as a land jetty and watershed to the traditional ruler who should supervise them, especially when the process of the award was questionable, paints the Delta State Government in a bad light.
Laws Violated By Delta State Government
Part V number 6(h) of the Delta State Open Contracting Law (2020) states that a bidder is expected to, alongside its bid, submit a “certificate of Incorporation or registration with the Corporate Affairs Commission.”
Fepregha Ventures International could not have met this requirement, given that as of March 2022, it was yet to register or incorporate with the CAC as a legal entity.
The procurement law of Delta State also says that a contract bidder must have the legal capacity and fulfil all obligations for taxes, pensions and social security to be eligible for contracts. These conditions could not have been met by the then-non-existing Fepregha Ventures International.
Traditional Ruler Didn't Answer Calls, Reply To Texts
Dataphyte reached out to HRM Kalanama Perediegha Luke via the phone. He, however, did not answer his calls after several attempts. He also did not reply to text messages sent to him via SMS and WhatsApp, seeking his comments on the development.
Delta Govt Shirks Responsibility
When contacted, the Information Desk Officer of the Delta State government, Mr Paul Uche, referred Dataphyte to the Delta State Bureau of Public Procurement.
When contacted, a Director at the Delta BPP, Mr Obas Okekeri, told this reporter that the bureau relied on the contractors’ registration board of the state to verify documents of those bidding for contracts.
While acknowledging the position of the laws on registration with the CAC, he noted that the role of the BPP was an oversight.
“We rely on the contractors’ registration board to clear contractors. What we do is an oversight function after the board must have done its job of verifying documents and validating that the process of contracts awarded is followed.”
Experts Frown On Illegal Contract Award
The Country Director of Accountability Lab, Mr Odeh Friday, told Dataphyte that it was important for anti-corruption agencies to begin to look closely at the procurement processes in the country.
He wondered why institutions set up to uphold laws in the award of contracts were the same structures breaking them.
“It is painful that institutions set up that should ensure that laws of the country are upheld – such as traditional institutions – are the same institutions that flout the law. This is more like a case of lawmakers becoming lawbreakers,” he said.
A lawyer, Mr Kehinde Awosusi, noted that it is illegal for companies not registered with the CAC to win contracts. He noted that it was the fault of regulatory agencies, adding that it was a prohibited offence.