Contracts inflation: Beating the epidemic of light-fingered public officials
It is gradually becoming a norm and cultural heritage that top government officials are inflating contracts with the targets of siphoning public funds into their personal use. This was very common during the previous President Muhammadu Buhari’s adminstration considering the fact there was weak monitoring apparatus to ensure proper executions of projects.
Unfortunately, the huge amount of money allocated to contracts are not even corresponding with the level of Execution even halfway as the case may be cutting across government Ministries Departments and Agencies (MDAs).
Just recently, the Minister of the Federal Capital Territory, FCT, Mr Nyesom Wike, has vowed to reject any contract variation that is unjustified and inflated. Wike said he was shocked and embarrassed by the huge discrepancies in the contract amounts handled by the Federal Capital Development Authority (FCDA).
While inspecting some ongoing projects in the FCT, along with the Minister of State, FCT, Dr Mariya Mahmoud and other officials. Wike said he has seen cases where contracts were increased from N10billion to N119 billion and from N50 billion to N200 billion without proper explanation.
According to him this is unacceptable and alarming, “I have never seen anything like this in my life. We are going to overhaul the system and ensure that every contract is awarded and executed transparently and efficiently.” One of the projects he visited was the Ushafa-Bwari road, which was awarded in 2017 at N20 billion but revised to N50 billion in 2020.
He said the contractor had received about N50 billion but was still asking for more money to complete the project that was 90 per cent done.
“We are not going to pay any more money for this project. The contractor has to finish it with what he has. This is a clear case of contract inflation and we will not tolerate it.”
Wike cited another instance expressing dissatisfaction with the progress of the rehabilitation of Lower Usuma Dam Water Works, Gurara Road in Bwari noting that he was misled to believe that the project was awarded as an emergency contract, but later discovered that it was only a letter of intent that was issued to the contractor in Aug. 2022.
The Minister emphasised that the project is “very important for providing water to our people in the city and its environs. But it has been delayed for too long. I have decided to cancel the emergency status of this project and re-award it through a competitive bidding process. My office will supervise the procurement and ensure that it is done properly.”
Wike also announced that more than 10 abandoned projects in the FCT have been selected and approved for completion. He revealed that he had reached agreements with the contractors and directed them to submit their files to the Director of Treasury for payment.
He said each contractor would receive a monthly payment based on the duration and cost of their project. He cited the example of the millennium tower, which he said would be completed in two years with a monthly payment of N3 billion.
He therefore added that on Monday, he would flag off the resurfacing of most of the roads in Garki, Maitama and Wuse, which he described as “terribly bad.”
Unfortunately, across Nigeria, there are so many projects where Ministers, Director Generals, Chief Executive Officers, Managing Directors, Executive Secretaries among others connive with contactors to paddle contracts with bogus amounts without completion or not following the master plan properly.
In fact, it is said at the various states level, most of the contractors operate within the coded names of companies owned by Governors where same Governors will award contracts without execution at all.
The Minister of Works and Former Governor of Ebonyi state, Engr. David Umahi also kicked against inflating certain contracts while inspecting some roads construction in the Ministry. He rejected the inflation of the 3kilometres Ozalla-Isu-Onitsha road by 400 percent from N3billion to N15billion noting that the contract will be reviewed by this current administration.
The President Tinubu-led government needs to be proactive to block such loopholes of contract inflation to enable the government to ensure judicious use of funds. The Anti-corruption agencies must synergise to bring all the corrupt leaders to book in the present and past government to reduce or minimise criminalmindedness in governance.
