Lagos Govt replies Doherty, justifies expenditure on Blue Line, vehicle purchases, others
The Lagos State Public Procurement agency has responded to the open letter by Funso Doherty, the governorship candidate of the African Democratic Congress (ADC) on the State’s procurement report.
The Director-General of the Agency, Mr Fatai idowu Onafowote in a press statement stated that “the Agency is committed to ensuring transparency, accuracy, and accountability in all government transactions, as mandated by the Lagos State Public Procurement Law.
“We regret that specific details, particularly concerning the descriptions of government dealings, may have inadvertently led to confusion, impacting both governmental entities and corporate partners providing services to the State. This arose largely from the lack of detailed descriptions in the project information, which has inadvertently led to confusion in the public space.
“We empathize with public concerns and extend our sincere apologies for any distress caused. It’s never our intent to cast doubt or cause misunderstandings that might tarnish the reputation of respected individuals and organizations involved in these transactions.
“To address these concerns thoroughly, the Agency has taken immediate steps. Line-by-line explanations of the contracts in question are attached herewith, aiming to provide absolute clarity and dispel any lingering misconceptions.”
Addressing some of the procurement deals that stirred controversy, particularly the Blue Line, the Government noted that: “The Blue Line Rail Project’s design and construction were entrusted to Messr CCECC Nigeria Limited. Subsequently, upon finalizing the fixed infrastructure, a two-year partial operation contract was executed with the contractor for the following purposes: bolster the technical and operational expertise of LAMATA’s teams, fostering their capacity, meticulously gather scientific, financial and revenue data essential for informed decision-making processes, equip pertinent practitioners with the necessary information crucial for forthcoming concessioning procedures, empower the contractor to promptly address any defects identified during the operational phase of the project.”
“Phase 1 faced significant delays due to insufficient funds. The current administration’s strategy successfully realised the Blue Line Rail Project. The Governor remains dedicated to completing section 2 during this term, employing the same approach used for phase 1. Section 2 has already been entrusted to Messr CCECC Nigeria Limited, seamlessly continuing the project with ongoing execution. In a commendable move, the Lagos State Government compensated verified property owners and tenants, following a globally accepted standard—a practice that will continue as needed.”
Responding to the N600 million and N1.5 billion approved respectively for the purchase of Hyundai buses and Ashok Falcon buses, the State government explained that the Chief of Staff holds oversight responsibilities across multiple MDAs within the State.
“However, it’s important to note that these buses are designated for the use of other MDAs within the State and are not allocated for the personal use of the Chief of Staff.”
Doherty had also in his letter queried the expenses of the Lagos Lotteries and Gaming Authority, stating that “substantial costs are being incurred by the Lagos State Lotteries and Gaming Authority far above the revenues it is generating for wide ranging and disparate purposes. As at September, the Authority’s 2023 revenues were reported at approximately N3.3bn and expenditure at approximately N11.4 billion. This contradicts the rationale for the existence of the Authority and should be examined.”
The Procurement agency also noted that the sum of N400,000,000 and N112,500,000 approved for a charter aircraft from Caverton were “payment accounts for past services rendered, wherein outstanding debts owed to the contractor is being reconciled and offset by this specific figure.”
However, the Procurement agency responded that “the dwindling revenue cannot be substantiated and does not reflect the true position at Lotteries Board. The enabling law creating the Board empowers it to allocate funds for expenditure relating to certain objectives including educational, infrastructural, health care and environmental objectives.”
In a response also to Doherty’s comment on the amount spent on fragrance for the Governor’s office, the Agency noted that the amount of N7,475,000 budgeted for the expenditure covers the entire year 2023 and other offices aside from the Governor’s office.
On the issue of the N531,553,559 dedicated to the renovation of Saint Andrews Anglican Church, Oke-Popo, Lagos, the Agency explained that “the Church was founded in 1889 and stands as a significant historical landmark in Lagos State.”
“The need for the State to preserve such landmark can therefore not be overemphasised. The contract amount encompasses funds allocated for both the refurbishment of the Church and compensation given to the church for the necessary demolition of sections of its property due to road expansion.”
