Amaechi, DG BPP Dragged To Court Over Rail Project Contract

The minister of Transportation, Mr. Rotimi Amaechi and the
director general of the Bureau of Public Procurement, BPP, has been
dragged before a Federal High Court in Abuja, over alleged flagrant
violation of the Public Procurement Act in the award of
Rehabilitation and Reconstruction of Port Harcourt- Maiduguri,
Eastern Narrow Gauge Railway line, LEADERSHIP reports^[1].

According to the suit, the minister and BPP DG are flagrantly in
contravention of the provisions of Sections 16 and 40 of the Public
Procurement Act, 2007 which is punishable by imprisonment.

The two public officers, if found to have violated the Public
Procurement Act risk jail term.

According to documents made available to LEADERSHIP, the
minister of Transportation have surprisingly shunned all effort
from American Export – Import Bank due to the fact that Eximbank
wanted government to government transparency negotiation.

But the minister sought to take a loan for the project from
Chinese Industrial and Commercial Bank of China Limited (a
privately owned financial institution) to be backstopped by a
Federal Government of Nigeria sovereignty guarantee at interest
rate of more than 3 per cent against US Eximbank cheaper interest
rate of 1.8 per cent.

The minister has been saying there’s no alternative to Chinese
loan but the US EXIM bank had indicated interest in the project
since 2018.

In the suit, dated 28th October, 2020, the plaintiff, Insight
Dynamic Resources Limited, is praying the court for an order of the
court to compel the federal government, the 3rd defendant in the
matter, to initiate the Judicial process against minister and BPP
DG for contravening the provisions of the public procurement Act as
stipulated by the provision of Section 58 (5) (a) of the Public
Procurement Act, 2007.

In the suit filed on behalf of the firm by Babah Hussaini
Bagudu, counsel to the plaintiff, the plaintiff prayed the court to
set aside the contractual agreement between the federal government
and the Chinese Civil Engineering Construction Company, CCECC, for
the Rehabilitation and Reconstruction of Port Harcourt-Maiduguri,
Eastern Narrow Gauge Railway.

He prayed the court to determine the following questions;
Whether the Honourable Minister of Transportation request for
Letter Of No Objection from Director General of the Bureau of
Public Procurement in favour of CCECC NIGERIA LIMITED for the
Contract of Rehabilitation and Reconstruction of Port Harcourt-
Maiduguri, Eastern

Narrow Gauge Railway with New branch line and Transhipment
facilities Solely on the bidding of the Instant Company devoid of
consideration of others interested, willing and capable Companies
who had showed interest for the said contract (vis-a-viz denning
all other Companies fair ground to compete for the said contract)
not contravene the spirit and provision of Section 16 and 40 of the
Public Procurement Act, 2007.

Whether the Due process Certificate of No Objection issued by
the Director General of the Bureau of Public Procurement to CCECC
NIGERIA LIMITED in respect of the Contract of the rehabilitation
and reconstruction of Port Harcourt-Maiduguri, Eastern Narrow-
Gauge Railway with New Branch Lines and transhipment facilities,
having the full Knowledge that the said request of the said letter
from the Honourable Minister of Transportation without adhering or
observing the Due process of law as enshrined in Public Procurement
Act, Particularly Section 16 and 40 of the Instant law, is valid in
line with the spirit and intent of the above provisions.

The minister of Transportation, Mr. Rotimi Amaechi and the
director general of the Bureau of Public Procurement, BPP, has been
dragged before a Federal High Court in Abuja, over alleged flagrant
violation of the Public Procurement Act in the award of
Rehabilitation and Reconstruction of Port Harcourt- Maiduguri,
Eastern Narrow Gauge Railway line, LEADERSHIP reports^[1].

According to the suit, the minister and BPP DG are flagrantly in
contravention of the provisions of Sections 16 and 40 of the Public
Procurement Act, 2007 which is punishable by imprisonment.

The two public officers, if found to have violated the Public
Procurement Act risk jail term.

According to documents made available to LEADERSHIP, the
minister of Transportation have surprisingly shunned all effort
from American Export – Import Bank due to the fact that Eximbank
wanted government to government transparency negotiation.

But the minister sought to take a loan for the project from
Chinese Industrial and Commercial Bank of China Limited (a
privately owned financial institution) to be backstopped by a
Federal Government of Nigeria sovereignty guarantee at interest
rate of more than 3 per cent against US Eximbank cheaper interest
rate of 1.8 per cent.

The minister has been saying there’s no alternative to Chinese
loan but the US EXIM bank had indicated interest in the project
since 2018.

In the suit, dated 28th October, 2020, the plaintiff, Insight
Dynamic Resources Limited, is praying the court for an order of the
court to compel the federal government, the 3rd defendant in the
matter, to initiate the Judicial process against minister and BPP
DG for contravening the provisions of the public procurement Act as
stipulated by the provision of Section 58 (5) (a) of the Public
Procurement Act, 2007.

In the suit filed on behalf of the firm by Babah Hussaini
Bagudu, counsel to the plaintiff, the plaintiff prayed the court to
set aside the contractual agreement between the federal government
and the Chinese Civil Engineering Construction Company, CCECC, for
the Rehabilitation and Reconstruction of Port Harcourt-Maiduguri,
Eastern Narrow Gauge Railway.

He prayed the court to determine the following questions;
Whether the Honourable Minister of Transportation request for
Letter Of No Objection from Director General of the Bureau of
Public Procurement in favour of CCECC NIGERIA LIMITED for the
Contract of Rehabilitation and Reconstruction of Port Harcourt-
Maiduguri, Eastern

Narrow Gauge Railway with New branch line and Transhipment
facilities Solely on the bidding of the Instant Company devoid of
consideration of others interested, willing and capable Companies
who had showed interest for the said contract (vis-a-viz denning
all other Companies fair ground to compete for the said contract)
not contravene the spirit and provision of Section 16 and 40 of the
Public Procurement Act, 2007.

Whether the Due process Certificate of No Objection issued by
the Director General of the Bureau of Public Procurement to CCECC
NIGERIA LIMITED in respect of the Contract of the rehabilitation
and reconstruction of Port Harcourt-Maiduguri, Eastern Narrow-
Gauge Railway with New Branch Lines and transhipment facilities,
having the full Knowledge that the said request of the said letter
from the Honourable Minister of Transportation without adhering or
observing the Due process of law as enshrined in Public Procurement
Act, Particularly Section 16 and 40 of the Instant law, is valid in
line with the spirit and intent of the above provisions.