COST of funds for businesses is set to go higher as the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) today once again jacked up the monetary policy rate (MPR) to 18 per cent.
The CBN’s MPR sets the tone for lending rate by commercial banks to their customers. Banks’ interest rate on borrowings by its customers, most of them businesses, always consequently flows in tandem with the MPR movement.
A multiplier effect is the inflationary rate, which tends to also move up as businesses pass on the increased cost of production and services to the end-chain, the consumers.
At the last MPC meeting in January, the committee had raised the rate to 17.5 per cent.
The CBN Governor, Godwin Emefiele, who spoke after the end of the meeting, cited concerns of upward risks and price adjustments in a build-up to petroleum subsidy removal, rising prices of other energy sources, continued exchange rate pressure and uncertain economic climate as conditions that informed the upward adjustment of the policy rate.
Emefiele, explaining how the MPC members arrived at the new rate, said 10 members voted to raise the MPR to 50 basis point, one member voted to leave the MPR at 25 basis point, while one member voted to retain the old rate.
He noted that all members voted for other parameters to remain constant.
Summarily, the MPC voted to raise the MPR to 18 per cent, leave the assymetrical corridor at +100/-700, hold the cash reserve ratio at 32.5 per cent, and also hold liquidity ratio at 30 per cent.
The CBN governor observed that the committee deliberated on the naira redesign policy, frequent down-time in transfers in banking channels, and glitches in online payments, noting that these areas were being addressed to lessen the economic burden on the people.
He observed, however, that the naira redesign policy had led to an inroad into the apex bank’s cashless policy programme.
Increase in the monetary rate is always bad news for the average Nigerian; this time, the inflation rate currently at 21.91 per cent is expected to head north as prices of goods and services react to the new monetary rate.
The chief economist, Coronation Merchant Bank, Chinwe Egwim, who spoke on the impact of the development on the economy, feared it would, indeed, increase borrowing costs.
“The MPR is a tool to tackle inflation. The concerns raised by the CBN governor on legacy infrastructure gap affecting food price is expected. This is part of the reason why the interest rate is high to manage inflation and cost of borrowing,” Egwim said.
She noted that high energy prices should be expected, advising that small scale businesses would have to sustain cost management posture to enable them be in business.
The economist said, “SMEs should adopt innovative changes at this time and expand their investment portfolio to enable them generate additional income.”
On the global scale, she noted that the international capital market would remain expensive for Nigeria considering its high appetite for borrowing, and considering the rate hikes by European central banks and other global lenders.
She also stressed the importance of the monetary and fiscal policy aligning together.
A development economist, Kelvin Emmanuel, told The ICIR that the hike in rate would have consequences on the real sector part of the economy.
Emmanuel said, “The decision to hike MPR by 50 basis points in a continuous attempt to align the inflation to interest yield curve and maintain a band of 400 basis points, while it might seem to be a good way to prevent a negative real return on yield for institutional capital, has a counter-productive impact on the cost of capital to the real sector.
“And this is because producers pass on to end consumers the higher cost of capital for production. In attempting to solve one problem of negative return on yield, the MPC is creating another problem of a hike in demand pull inflationary buffers for the consumer price index.”
THE United States (US) has threatened sanction on masterminds of violence and voter intimidation during the March 18 governorship and state assembly elections in Nigeria.
In a statement posted on its website, the US Consulate in Nigeria said it “witnessed some of the these incidents first hand” in Lagos, kano and other states.
“The United States is deeply troubled by the disturbing acts of violent voter intimidation and suppression that took place during those polls.
“The use of ethnically charged language before, during, and after the gubernatorial election in Lagos was particularly concerning,” the statement said.
While calling on the Nigerian authorities to bring those involved in intimidating voters and suppressing the voting process to justice, the US Embassy threatened sanctions on those found guilty of the acts.
“The United States likewise will consider all available actions, including additional visa restrictions on individuals believed to be responsible for, or complicit in, undermining the democratic process in Nigeria.”
The Consulate commended “all Nigerian political actors, religious and community leaders, youth, and citizens who have chosen to reject and speak out against such violence and inflammatory language, affirming Nigerians’ commitment to and respect for the democratic process”.
The statement urged those challenging the election results to go through the established legal processes “which must not be interfered with”.
However, the US observed operational and technical improvement on the February 25 presidential and National Assembly elections during the state polls.
“Polling stations generally opened on time and most results were visible on an electronic viewing platform in a timely manner,” the statement said.
Earlier, The ICIRreported how several election observers deployed to monitor the March 18 gubernatorial and state assembly elections across states in Nigeria suffered one form of assault or the other.
The report identified security operatives, political thugs and a federal lawmaker as some of the perpetrators of the assaults.
TWO Nigerians abroad have shredded their Nigerian passport booklets and denounced their citizenship in protest over the conduct of the 2023 general elections.
Separate videos posted by @Gidi_Traffic and @Ogundamisi, which have gone viral show two men who said they had lost faith in the country after observing how the highly criticised Nigeria elections were carried out and for that reason, no longer wanted to be associated with the country.
Many have expressed their thoughts on the act of destroying the Nigerian document ranging from hilarious to solemn.
@deoluakinyemi, a Nigerian cleric wrote on twitter: “I also have a few expired passports I can tear. We need to see the names and dates so that people don’t make mistake.”
A Nigerian lawyer and social entrepreneur, Brian Jude, residing in Texas, United States, also reacted: “Una don come again. To collect a new passport at Atlanta office usually takes around 3-7 years. Think before you do.”
The videos also caught the attention of the Special Assistant to the President on New Media Tolu Ogunlesi, who explained that it was not the passport that made one a Nigerian citizen.
“Millions of Nigerian citizens do not have passports. The only way to stop being a Nigerian citizen is to follow the due process of citizenship renunciation, not by tearing or burning your passport, which is a crime by the way,” Ogunlesi said.
The spokesperson for the Nigerian Immigration Service Tony Akuneme, could not be reached for comments as of the time of reporting, but a senior staff of the office who does not want to be named because she is not authorised to speak on the issue, said that the passport document remains a property of the Nigerian Government, not the person to whom it is issued and may only be legally destroyed by the government.
Checks by The ICIR revealed that while renouncing Nigerian citizenship is a constitutional right afforded to citizens above the age of 18 years, the process is not as easy as tearing one’s passport, an act that is in fact, counterproductive.
However, the power to approve renunciation or restoration of Nigerian citizenship is the sole prerogative of the President, as enshrined in Chapter III, Article 29, sub. Section 1-2, of the 1999 Constitution of the Federal Republic of Nigeria, as amended.
Nigerian Missions abroad can only facilitate such applications but do not hold the ultimate decision and prospective applicants must fulfil certain basic requirements.
These include a formal application letter duly signed by the applicant, a duly completed application form provided by the Mission, an affidavit for renunciation of citizenship in a Nigerian court and two copies of recent passport photographs.
Other requirements are applicant’s original letter of identification from the Local Government Area of origin, evidence of alternative citizenship, original birth certificate, and original Nigerian international passport and fee payment receipt as may be determined by the Mission.
SIX drug traffickers have been sentenced to a total of 156 years imprisonment for offences bordering on drug dealing, transportation and conspiracy to transport illicit substances.
The cases were filed against the convicts by the National Drug Law Enforcement Agency (NDLEA).
This was disclosed in a statement released on Tuesday, March 21 by the spokesperson of the agency, Femi Babafemi.
According to the statement, one of the victims, 27-year-old Ahmed Abdulsabur, was arrested in 2022 by NDLEA operatives and prosecuted in charge number FHC/AB/20C/2022 at the Federal High Court, Abeokuta, presided over by Justice Joyce Obehi Abdulmalik.
“Delivering her judgment on the six counts charge brought against Ahmed, Justice Abdulmalik convicted and sentenced him to 10 years imprisonment on each count, bringing the total number of his in jail term to 60,” the agency stated.
In a similar ruling, Justice Abdulmalik also sentenced another dealer, Olumide Elegbede, 32, to 20 years jail term, ten years for each of the two counts of the charge brought against him in charge number: FHC/AB/128C/2I.
The judge ruled that the years of imprisonment in both cases will run concurrently.
At the Federal High Court in Lagos, the quartet of Okechukwu Umeh, Lanre Adebayo, Adigun Adeshina and Emmanuel Omijeh were arraigned on three counts in charge numbered FHC/L/87C/2023.
“The trial judge, Justice Akintayo Aluko, on Thursday 16th March, convicted and sentenced each of them to five years on count one; seven years each on counts two and three. This brings the total number of years for each of them to 19 years jail term and the four of them to 76 years imprisonment.
“While the judge ruled that the sentences should run concurrently, he also gave the four convicts the option of paying N20 million in lieu of the jail terms. This is in addition to granting the application by the NDLEA for the final forfeiture of a white colour Ford bus with registration number: PHC 315 ZT, used in conveying 532. 8 kilograms of the Loud variant of cannabis on the day of their arrest, Sunday 22nd January 2023 along Lagos/ Ibadan expressway,” the NDLEA stated.
The NDLEA added that the court also granted the final forfeiture of N3 million offered as a bribe by the convicts to its officers.
The agency said the drugs concealed in ‘take away’ food packs in 19 big cartons were seized in the white Ford bus heading to Port Harcourt, Rivers State, along the Lagos-Ibadan expressway at 2:35 am on Sunday, January 22.
The programme aims to give participants the opportunity to report on international affairs during the 78th session of the United Nations General Assembly in New York.
Fellows will make professional contacts, interact with seasoned journalists and gain a broader perspective on global issues.
The fellowship is open to journalists working full time in developing countries in Africa, Asia, Latin America and the Caribbean.
Applicants should have a compelling interest in international affairs and the work of the U.N. and its member agencies. Freelance journalists can also apply.
The fellowship includes travel, accommodations and a per diem allowance.
Journalists who are 25 to 35 years old and from developing countries can apply for a fellowship to report on the United Nations from September to November 2023.
The submission of application deadline is April 24, 2023. Interested applicants can apply here.
THE candidate of the Labour Party (LP) in the just concluded Presidential election, Peter Obi, has finally submitted a petition challenging the outcome of the election held on February 25.
This was announced by the spokesperson of the Obi-Datti Presidential Campaign Council, Yunusa Tanko, on his official Twitter handle on Tuesday, March 21.
“It is official. The Labor Party Presidential candidate Peter OBI has filed his petition to the presidential elections tribunal in Abuja. The process of reclaiming the people’s mandate has started.” he tweeted.
The Independent National Electoral Commission (INEC) declared Bola Ahmed Tinubu of the All Progressives Congress (APC) winner of the presidential poll ahead of 17 other candidates that contested the election.
The Chairman of INEC, Mahmood Yakubu, announced the result of the election on March 1.
According to the result released by INEC, Tinubu scored a total of 8,794,726 votes to defeat Atiku Abubakar of the Peoples Democratic Party (PDP), who polled a total of 6,984,520 votes, and Peter Obi of the Labour Party (LP), who came third with 6,101,533 votes.
The PDP and LP candidates had since rejected the outcome of the election and vowed to challenge it in court.
An election petition must be presented and filed within 21 days of the declaration of the result.
When a petitioner misses the deadline to file his petition and it is later ruled to be statute-barred, he forfeits his right to bring the case.
…vote-buying as directly witnessed by EU EOM observers, further detracted from an appropriate conduct of the elections.
THE European Union (EU) Election Observation Mission to Nigeria’s 2023 general election has expressed worry over the “obstruction and use of organised violence” during the March 18 governorhip polls across the country.
The EU Mission noted that even though the elections mostly started on time, obstruction and organized violence limited the free expression of the will of voters, despite efforts by the civil society to promote democratic standards.
It noted that polling on election day was disrupted by multiple incidents of thuggery and intimidation of voters, polling officials, observers and journalists, resulting in many casualties and fatalities.
“Lagos, Kano, and other states in the southern and central part were most affected,” EU Chief Observer, Barry Andrews stated during a press conference in Abuja while presenting the Mission’s second preliminary statement on the process of the 2023 general elections.
He added that although the Independent National Electoral Commission (INEC), introduced some corrective measures ahead of the governorship and state assembly elections which enabled sensitive materials to be delivered on time and election technologies to be improved, the Commission continued to lack transparency.
“Throughout the mission we saw that Nigerians have a great appetite for democracy and are keen to engage in various civic activities. However, in many parts of the country, their expectations were not met.
“Many were disappointed and we witnessed voter apathy that is in part a clear consequence of failures by political elites and, unfortunately, also by INEC,” Andrews said.
According to the report, vote buying which was directly witnessed by EU EOM observers, further detracted from the appropriate conduct of the elections.
According to the report, there was also a clear underrepresentation of women as political parties lacked internal policies to support the constitutionally prescribed inclusion, contrary to Nigeria’s international commitments to eradicate discrimination against women.
Public confidence and trust in INEC were “severely damaged” due to the lack of transparency and operational failures and the polls revealed systemic weaknesses in the country’s electoral framework.
The first report of the EU EOM was issued on February 27, two days after the Presidential and National Assembly elections and a final report containing recommendations for improving the country’s electoral framework is expected to be published in a few months, as the Mission continues to observe post-election developments.
THE Independent National Electoral Commission (INEC) has declared the results of governorship elections in Zamfara, Rivers and Kaduna states.
The announcement was made by the INEC returning officers in each state after collating the results from polling units.
Zamfara’s incumbent governor, Matawalle Bello, lost his reelection bid to Lawal Dare of the Peoples Democratic Party (PDP).
Bello-Matawalle
The returning officer for the election, Kasimu Shehu, said Dare scored 377,726 votes to defeat Matawalle, who polled 311, 976 votes.
In Rivers State, Sim Fubara of the PDP emerged victorious in the gubernatorial election after polling 302,614 votes.
Siminalayi Fubara/PC: Channels TV
According to INEC, Tonye Cole of the All Progressives Congress (APC) came second with 95,274 votes, while Beatrice Itubo of the Labour Party (LP) came third with 22,224 votes.
Meanwhile, Uba Sani of the APC has been declared winner of the Kaduna State gubernatorial election.
INEC collation officer, Lawal Bilbis said Sani secured 730,002 votes to defeat his closest rival, Isah Ashiru Kudan of the PDP, who garnered 719,196 votes. Jonathan Asake of the Labour Party (LP) came third with 58,283 votes.
Uba Sani/PC: Punch Newspaper
Sani won in 10 local government areas (LGAs) of the state, while Ashiru won in 13. The LGAs won by Ashiru include Kaura, Sanga, Kajuru, Jaba, Makarfi, Jema’ah, Zango-Kataf, Soba, Chikun, Kagarko, Kachia, Lere, and Kudan.
The APC candidate won in Giwa, Ikara, Kauru, Sabon-Gari, Zaria, Kubau, Kaduna South, Kaduna North, Igabi, and Birnin-Gwari.
The governorship elections in the three states were keenly contested by the major political parties. The polls were also marred by pockets of violence and irregularities.
However, INEC has assured Nigerians that the results reflect the true wishes of the electorate.
Reacting to his victory in Zamfara, Lawal Dare of the PDP said his victory was a sign that the people of the state have rejected Matawalle’s administration. He promised to work hard to fulfil his campaign promises and take the state to greater heights.
Similarly, Sim Fubara of the PDP expressed gratitude to the people of Rivers State for giving him the opportunity to serve them. He promised to work tirelessly to ensure that the state experiences more development.
Uba Sani of the APC also thanked the people of Kaduna State for their support. He promised to run an all-inclusive government that will bring development to all parts of the state.
IN this second and concluding part of this investigation, Ekemini Simon takes a look at multiple contracts awarded to different companies for the yet-to-be-finished reconstruction of Abak-Ekparakwa-Ete-Ikot Abasi road.
Regardless of the N5.89bn reconstruction contract awarded to CCECC for the reconstruction of the Abak-Ekparakwa-Ete-Ikot Abasi federal road, the federal government through the Federal Roads Maintenance Agency (FERMA) and Federal Ministry of Works and Housing between 2019 and 2022 budgeted N896.4m for repairs maintenance of this road and awarded contracts to eight companies.
Even as the reconstruction project is yet to address fully the dilapidated condition of the road, at least the repairs and maintenance contract awarded to eight contractors for this project within the last four years and N753 million spent on the repair project should have changed the miserable condition of the road.
Multi-millions spent yearly for shabby repairs of Essene Spur
Checks into the Open Treasury Portal of the Federal Government reveal that in recent times, funds disbursement for the repairs and rehabilitation of the Abak-Ekparakwa-Ete-Ikot Abasi federal road commenced on December 31, 2019 to the contractor, Sunnex Nig Ltd with N23.40m paid. The contractor specifically had the contract of general maintenance of the spur called Essene in the Ikot Abasi section of the project. Through the aid of Google Map, an Open-Source App that measures distance, TheMail discovered that the road measured 3km.
Findings reveal that this road was shabbily repaired by Sunnex Nig. Ltd under the supervision of FERMA and consequently broke down in less than six months. Checks at the Corporate Affairs Commission (CAC) reveal two Directors of the company; Idris Balogun and Samson Idris.
Fallen truck on Abak-Ikot Abasi road
Seventeen months after the contract in 2019, another firm, I.C.O Engineering Consult Limited was awarded a contract for the maintenance of the road with N31.74m paid on May 3, 2021. When TheMail visited the road in November 2022, community leaders admitted that although repair work was carried out in December 2021, a section of the road measuring about 1km returned to its deplorable state as soon as the rainy season set in around April/May 2022.
A Community Leader in Essene, Otuekong Emmanuel Ekanem, said, ” The company that came under the supervision of FERMA only patched the potholes. It was done haphazardly. After that, as soon as the rainy season arrived, everything was washed away. This is not the first time it has happened. Each time they come to repair this road, it does not last beyond six months. We need a fresh reconstruction else resources would continue to be wasted”.
Checks at CAC reveal Okorie Ifeanyi Clement, Okorie Clement Joel, Chikaodiri Okorie Ezekiel and Humphery Emenogu Ikenna as Directors of the company.
After this newspaper had written a Freedom of Information request to FERMA and the Federal Ministry of Works in Mid December for information and evidence of spending on rehabilitation projects on the road, the Federal Ministry of Works and FERMA awarded contracts to two companies for the emergency repair of this spur.
According to data extracted from Open Treasury Portal, the Federal Ministry of Works and Housing on December 23, 2022, made “Part-payment for the emergency repair work on Abak-Ekparakwa-Ikot Akan Junction (Repair of Essene Road) at N81.53m (Including VAT tax) to A.E. And E. Limited. The company could not be reached at the address provided at CAC nor was there other contact information provided that could have aided the request for information on the evidence of work done.
Yet, eight days after payment was made by the federal ministry of works to repair this particular road, FERMA also made a part payment of N34.15 million for the “major maintenance” of the same road to Delko Holdings Nig Ltd.
Delko Holdings did not respond to the FOI request sent to the company for information and documents on the contract.
TheMail had requested for a contract approval letter, cost of the contract, contract duration, payments received so far from the government including date of payment, kilometres of total project/ kilometres of work executed/cost per kilometre, stage of work executed and location covered, and photos of before and after execution.
When TheMail Newspaper toured the road again on January 20, 2023, the newspaper noticed that repair work had commenced on the bad section of the road.
The newspaper reached the Chairman of the company, Ahuko James, by phone, who told TheMail newspaper that his company is the one undertaking the repairs. He said they had started the repair work immediately after receiving payment but stressed that the N34.15m is only advance payment for their work.
He assured that the company’s manager would respond to the FOI request from the newspaper. But this was not responded to before filling this report.
As stated earlier, A.E and E Limited could not be reached to give evidence on where they executed their contract.
Interestingly, when this newspaper revisited the project in mid-February 2023, the bad section of the road, which spans 1km, has been repaired. Surprisingly, however, De Bently Limited appeared on the signpost as the contractor of the project.
Checks at the Open Treasury Portal reveal that throughout the period under investigation, the company was not awarded the contract in Akwa Ibom state, thus raising suspicion that the project may have been subcontracted to the company.
Yet, background check of the company raises questions about their expertise. Checks at CAC did not yield comprehensive results about the company except that they were registered on June 18, 2010, with an address at 12 Gindiri street, Garki 2, Abuja.
However, analysing information on the company’s address as provided on the signpost at Essene Road raises a red flag. The address is Plot 892, Ngozi Okonjo Iweala Street, Utako District, Abuja. Investigations reveal that the company that occupies this premises is a hospitality outfit called Bently Hospitality Services and Consultancy Services, registered at CAC on October 19. 2022.
Extrabudgetary spending on ghost repairs, maintenance
Contract for the repairs and maintenance of the main stretch of the Abak-Ekparakwa-Ete-Ikot Abasi road received more than the budgeted funding in 2021. Checks into the 2021 Appropriation Act show that the total amount budgeted for repairs and maintenance for the road was N162.98m.
Since CCECC has overlaid 27km from Abak to Ibekwe in Mkpat Enin and 1.4km in Ikot Ntot in Mkpat Enin, it implies that the focus on repair and maintenance works should be on the remaining 20 kilometres.
Interestingly, the federal government, through FERMA, paid more than the budgeted amount. FERMA paid two companies, Cossel construction and Ok & Joel Engineering for the rehabilitation and maintenance of the stretch of the federal road in 2021. These two companies received a total payment of N223.17m, which is 36.9 per cent higher than the budgeted amount.
Cossel construction did not respond to the FOI request for information and documents on where the company worked despite acknowledging receipt of our letter in early December 2022.
Checks at CAC reveal Cosmas Anigbogu and Raymond Anigbogu as Directors of the company. The newspaper could not reach Ok & Joel despite several efforts. The company had moved out of its Abuja address published at CAC.
An internet search did not also turn out results of the company’s website or other contact information. Yet, further checks at CAC showed that the Directors of I.C.O Engineering, which were awarded the contract for the 3km spur, the same 2021 control shares at Ok & Joel with the addition of Ifeanyi Okorie Chisom as Person with Significant Interest (PSC) and Christopher Okegbe as Secretary.
In the 2022 fiscal year, although there was no budgetary provision in the Amended Appropriation Act for the repairs of this federal road beside the Essene spur and the Ekparakwa Etinan section, the repairs and maintenance of the Abak-Ekparakwa-Ete-Ikot Abasi road continued to gulp multimillion naira without evidence of project execution. ‘Two other companies, Ken-Next Venture and Omron Construction were reported at Open Treasury Portal to have been paid N359.01m between April and June 2022 for the project.
TheMail had sent FOI requests in December 2022 to the FERMA and the above companies seeking information and documents on implementing their contracts.
The request specifically sought information and documents on the contract approval letter, cost of the project, payments so far received, kilometres of work executed, precise location on the road the project was executed, stage of work implementation, photos of before and after execution, and certificate of completion.
Spoilt vehicle due to deplorable Abak-Ikot Abasi road.
Instead of responding to the request, FERMA Akwa Ibom Office told TheMail Newspaper to write to its head office for the information. Although the FOI puts the responsibility of the writing on the State office, this newspaper still wrote to the Managing Director/ Chief Executive Officer of FERMA in Abuja. Even though the letter was acknowledged by the office in mid-December, 2022, the request was never acceded to by FERMA and the companies.
When TheMail toured the road in November 2022, the newspaper did not see evidence of repairs or maintenance on the stretch by the companies awarded the contract between 2021 and 2022.
Checks at CAC show three Directors at Ken-Next Venture; they are Onah Adaeze Favour, Onah Blessing Omotewho and Onah Kelvin James, who is the only one tagged as Person with Significant Control (PSC). Also, CAC checks reveal the Directors of Omron Construction to be Adesokan Olufunmbi (PSC), Olatunji Adedamola (PSC) and Olatunji Jameel.
‘We have not received any contract or payment’ Ken-Next Opens Up
Although data at Open Treasury Portal shows that Ken-Next Venture was paid N62.78m on April 1, 2022, for the “maintenance of Eket -Ikot Abasi road relocated to Ete-Abak road, an official of the company said that neither a contract was awarded to the company nor the contract fund published to have been paid ever got to the company nine months after the reported payment.
Although staff members of the company rejected the FOI request when TheMail visited their office in Port Harcourt on December 13, 2022, this newspaper went ahead to send the FOI request through the official mail address of the company. This still was not responded to. Yet, through a phone call, the newspaper reached Kelvin Onah which CAC documents show as the only Person with Significant Control in the company.
Kelvin, who admitted to having seen the FOI request, said his organisation thought it was an error since they had not received such a contract and hence did not see a need to respond.
He insisted that neither the contract for the repairs of the road has been awarded to his company nor the amount reported to have been paid to them.
Procurement regulation breached as FERMA awards Contract to splitting companies
Investigations have also shown that procurement processes were neglected by the procuring entity — the FERMA on the award of the repairs and maintenance of the road project. Findings showed that the agency contravened the public procurement law by awarding the contract for repairing the Abak-Ekparakwa-Ete-Ikot Abasi road to two companies with the same directors.
Enacted in 2007, the public procurement act clearly determines how public procurements should be conducted by ministries, departments and agencies
Section 58 (10 a and b) lists bid rigging among procurement offences.
It notes that “bid-rigging means an agreement between persons whereby offers submitted have been pre-arranged between them; or their conduct has had the effect of directly restricting free and open competition, distorting the competitiveness of the procurement process and leading to an escalation or increase in costs or loss of value to the national treasury”.
The FERMA did not give much regard to the Act. Instead, the agency went ahead to award the contract to two companies; I.C.O Engineering Consult Limited and Ok & Joel Engineering Services Limited, which data indicates that they engaged in bid rigging.
Checks into the CAC records revealed that these two companies shared the same Directors; Okorie Ifeanyi Clement, Okorie Clement Joel, Chikaodiri Okorie Ezekiel and Humphery Emenogu Ikenna. In both companies, Okorie Ifeanyi Clement is reported as the person with significant control.
Further analysis of the companies’ data suggests that it would not have been difficult for FERMA to identify the rigging if they had wanted to adhere to the provisions of the procurement. I.C.O Engineering Consult Limited and Ok & Joel Engineering Services Limited share the same registration address provided at CAC; No.9 Port Said Street, Zone Wuse Abuja, Abuja.
What is more, the payment date reveals that the FERMA is complicit in the deal. These two companies were awarded the contract for the road project in the same month in 2021.
Data from Open Treasury Portal shows that while I.C.O Engineering Consult Limited received N31.74m payment on May 3, 2021, Ok & Joel Engineering Services Limited got a payment of N80.23m 24 days after on May 27, 2021 for the same work.
When this newspaper in early December 2022 visited the address provided by the companies to submit a FOI letter requesting information and documents that give evidence of the project execution by the companies, it was gathered that the companies had moved from the facility without an alternative address. Search on the internet neither turned out results on the official websites of the companies nor phone and email address.
FERMA’s suspicious spiral of silence
Getting information and documents from the FERMA didn’t turn out successful. Every effort was stalled.
An FOI letter was sent to FERMA’s office in Akwa Ibom State. The Federal Roads Maintenance Engineer, Akwa Ibom State, L.O. Onimago refused to respond and directed the newspaper to request information and documents from its corporate headquarters in Abuja.
The newspaper made the request to FERMA’s corporate headquarters in Abuja in mid-December 2022. The office failed to respond despite acknowledgement. The office also failed to respond to calls to its official phone contact.
The supervising ministry of FERMA, the federal ministry of works and housing did not also respond to requests for information and documents on the contract. The Director (Planning, Research and Statistics), O.B Ode-Martins who responded on behalf of the Minister told this newspaper to obtain the details requested from FERMA under whose purview the project items fall.
The excuse of not acceding to the request is evasive since FERMA is under the supervision of the federal ministry of works and Housing.
Besides, if it is determined that the information sought is domiciled with another agency, the Act also gives the Minister the responsibility to transfer the request to the concerned agency, not the journalist.
Section 5 (1) reads “Where a public institution receives an application for access to information, and the institution is of the view that another public institution has greater interest in the information, the institution to which the application is made may within 3 days but not later than 7 days after the application is received, transfer the application, and if necessary, the information, to the other public institution, in which case, the institution transferring the application shall give written notice of the transfer to the applicant, which notice shall contain a statement in forming the applicant that such decision to transfer the application can be reviewed by the Court.”
FERMA in a Web of Consistent Fraud, Illegality
This is not the first time FERMA will be caught in the Web of fraud and illegalities.
In March 2022, the House of Representatives was moved to investigate what it alleged as monumental fraud and illegalities going on at FERMA.
The Minority Leader of the House, Ndudi Elumelu had expressed worry that most of the contracts awarded by FERMA are alleged to have been cornered by the management for themselves and their cronies who abandon the site after collecting a reasonable percentage of advance payment of contract sum.
“Further worried that if these spate of unbridled pilfer by top government officials is allowed to fester and unchecked it will not only drain the national purse but discredit the perceived fight against corruption by this government in the eyes of the international community, hence the need for this motion,” he said.
CSJ faults Ministry, FERMA on controversial procurement
The Centre for Social Justice has condemned the procurement method used in the repairs and maintenance of Abak-Ekparakwa -Ete-Ikot road including its spurs.
Briefed by the concerns, the Executive Director of the Centre for Social Justice, Eze Onyekpere noted that using two contractors with same Directors for a particular contract is corruption and grossly against the procurement requirements.
“This is just the same set of people using the mask of incorporation to get the same contract. In procurement, there should be competition.
Onyekpere, who equally condemned the practice of the Ministry of Works and Housing together with FERMA awarding the contract for maintenance of Essene Road during the same period, said the practice gives a leeway for money to be diverted.
“That is double counting so that money can be taken from the treasury. In such a situation, who will actually do the work”, he queried.
He also noted that for eight contractors to be awarded maintenance of a road project without specific information on the particular area or kilometres assigned is a red flag for corruption.
“They are supposed to show different sections they award contracts. For instance, that the contract is divided into lots; 1, 2 or 3 and show the kilometres of the contract awarded to each contractor so that people can know who is doing what and how they are expected to do it.”
The Executive Director said sometimes government officials intentionally fail to include this information in the contract so as to avoid thresholds of approvals hence give the contract to their cronies.
Onyekpere explained that when contracts follow the threshold approvals, it will demand more meticulous consideration of assessment by higher authorities thus the reason officials of the contracting officials make it opaque.
