Alleged N60bn fraud: NGO asks EFCC, ICPC to probe REA
On Thursday, the Centre for Social Justice Advocacy, a non-governmental organization, urged the Economic and Financial Crimes Commission (EFCC) to investigate an alleged N60 billion fraud related to the awarding of an electrification project by the Rural Electrification Agency (REA). The organization also requested the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to join the investigation.
The Centre argued that awarding the project through selective tendering rather than open competitive bidding contradicts the current government’s anti-corruption stance. They highlighted that the Federal Government allocated N170 billion to the REA in the 2024 budget for various projects, which should be awarded to qualified contractors in accordance with the Procurement Act.
Abubakar Abdulraman, the Centre’s Executive Director, noted that anti-corruption agencies are aware of REA’s advertisements for these projects but questioned whether they know about the REA’s decision to divide the work into piecemeal contracts worth over N60 billion.
While the Centre acknowledged that selective tendering can be permissible in emergencies, they criticized its use in this instance as potentially corrupt, favoring cronyism, and detrimental to the government. They suggested that this approach could indicate collusion with contractors and an attempt to misappropriate funds during economic hardship.
The NGO called on anti-corruption agencies to investigate the situation thoroughly. In response, the REA stated that it follows due process in awarding contracts. The agency mentioned that newspaper advertisements for proposals were published in May and July, with the opening and evaluation of tenders ongoing. The process involves 349 projects, with over 150 small-value projects nearing completion.
The REA clarified that while selective tendering is legally permitted under Section 40 of the Public Procurement Act, 2007, no contracts have yet been awarded through this method. They emphasized that bids are opened publicly, with observers invited to ensure transparency, and that the procurement process is still in progress, with no final list of contractors available yet.
