Senate Queries NECO Over Award Of N6.5bn Contracts Without Due Process

THE Senate has queried the nation’s secondary examination body,
the National Examination Council, NECO, over the alleged award of
contracts to the tune of N6.5 billion without due process .

According to the Senate, the contracts awarded by NECO are the
printing of security and non-security documents.

This was raised by the Senate Committee on Public Accounts, led
by Senator Matthew Urhoghide, Peoples Democratic Party, PDP, which
relied on the 2017 report of Office of Auditor General for the
Federation submitted to it for consideration.

According to the Auditor General, NECO is unable to present any
record to show that approval was granted for the contract by the
Ministerial tender board in the first contract that cost about N451
million. In the second contract that cost about N6.1 billion,
quotations were not collected from three bidders as required by PPA
2007.

It also noted that taxes were not deducted from some of the
contract payment, even as there was no technical and financial
evaluation.

According to the report, evidence of placement of advertisement
was not attached to either payment vouchers or contract files. The
report noted further that the amount expended was above the
threshold of the Council and that the contracts were split, with
some awarded to same contractor with LPO and work order issued on
the same date.

The query read: “Examination of records and documents revealed
that the Commission’s Tenders Board approved the award of contract
for printing of security materials in the sum of ¦ 451 million to a
company in March 2017 in contravention of provisions of federal
government circular No.SGF/OP/I/S.3/XI/849 of January 16, 2016.

‘’The circular reiterated that the approved revised thresholds
for service wide application, for which the Parastatal Tender Board
can only exercise authority on works whose value is less than ¦ 250
million, while any sum above this, is to be referred to the
Ministerial Tenders Board for approval. “We sought the authority
for the above approval, including the ministerial approval but none
was provided. “The above unilateral award of contracts without
following due process may lead to awarding contracts to unqualified
contractors. Recommendation The Registrar/CEO should be sanctioned
in line with provisions of Financial Regulation 3117.”

In his response, NECO’s Registrar, Prof. Godswill Obioma, who
spoke on the issue of N461 million, said: “These are payments to
Data Science Nigeria Limited for the supply of optical mark readers
for objective question papers for various examinations conducted by
the Council.”

The committee sustained the queries on the ground that the
Council could not provide evidence of approval from the Ministerial
Tenders Board before awarding contracts beyond its threshold.

The second query read: “Examination of contracts awarded for the
printing of security and non- security documents valued at ¦
6,166,405,407.42 revealed that the contracts were awarded without
compliance with the provisions of PART VI, Section 24 (I) of the
Public Procurement Act (PPA) 2017 as amended, which states that
except as provided by this Act, all procurements of goods and works
by all procuring entities shall be conducted by open competitive
bidding.

“The following irregularities were also noted, quotations were
not collected from three bidders as required by PPA 2007, taxes
were not deducted from some of the contract payments.

‘’There was no technical and financial evaluation, evidence of
placement of advertisement was not attached to either payment
vouchers or contract files. The amount expended was above the
threshold of the Council,

‘’The contracts were split as some contracts were awarded to
same contractor with LPO and work order issued on the same
date.”

Also responding to the N6.1 billion query, the Registrar said: “
The contracts for the printing for our questions are warded through
selective tendering. This is the case to avoid leakages of our
examinations and award of contract to printers of doubted
integrity.” Chairman of the committee sustained the query because
the Registrar was unable to defend it.

THE Senate has queried the nation’s secondary examination body,
the National Examination Council, NECO, over the alleged award of
contracts to the tune of N6.5 billion without due process .

According to the Senate, the contracts awarded by NECO are the
printing of security and non-security documents.

This was raised by the Senate Committee on Public Accounts, led
by Senator Matthew Urhoghide, Peoples Democratic Party, PDP, which
relied on the 2017 report of Office of Auditor General for the
Federation submitted to it for consideration.

According to the Auditor General, NECO is unable to present any
record to show that approval was granted for the contract by the
Ministerial tender board in the first contract that cost about N451
million. In the second contract that cost about N6.1 billion,
quotations were not collected from three bidders as required by PPA
2007.

It also noted that taxes were not deducted from some of the
contract payment, even as there was no technical and financial
evaluation.

According to the report, evidence of placement of advertisement
was not attached to either payment vouchers or contract files. The
report noted further that the amount expended was above the
threshold of the Council and that the contracts were split, with
some awarded to same contractor with LPO and work order issued on
the same date.

The query read: “Examination of records and documents revealed
that the Commission’s Tenders Board approved the award of contract
for printing of security materials in the sum of ¦ 451 million to a
company in March 2017 in contravention of provisions of federal
government circular No.SGF/OP/I/S.3/XI/849 of January 16, 2016.

‘’The circular reiterated that the approved revised thresholds
for service wide application, for which the Parastatal Tender Board
can only exercise authority on works whose value is less than ¦ 250
million, while any sum above this, is to be referred to the
Ministerial Tenders Board for approval. “We sought the authority
for the above approval, including the ministerial approval but none
was provided. “The above unilateral award of contracts without
following due process may lead to awarding contracts to unqualified
contractors. Recommendation The Registrar/CEO should be sanctioned
in line with provisions of Financial Regulation 3117.”

In his response, NECO’s Registrar, Prof. Godswill Obioma, who
spoke on the issue of N461 million, said: “These are payments to
Data Science Nigeria Limited for the supply of optical mark readers
for objective question papers for various examinations conducted by
the Council.”

The committee sustained the queries on the ground that the
Council could not provide evidence of approval from the Ministerial
Tenders Board before awarding contracts beyond its threshold.

The second query read: “Examination of contracts awarded for the
printing of security and non- security documents valued at ¦
6,166,405,407.42 revealed that the contracts were awarded without
compliance with the provisions of PART VI, Section 24 (I) of the
Public Procurement Act (PPA) 2017 as amended, which states that
except as provided by this Act, all procurements of goods and works
by all procuring entities shall be conducted by open competitive
bidding.

“The following irregularities were also noted, quotations were
not collected from three bidders as required by PPA 2007, taxes
were not deducted from some of the contract payments.

‘’There was no technical and financial evaluation, evidence of
placement of advertisement was not attached to either payment
vouchers or contract files. The amount expended was above the
threshold of the Council,

‘’The contracts were split as some contracts were awarded to
same contractor with LPO and work order issued on the same
date.”

Also responding to the N6.1 billion query, the Registrar said: “
The contracts for the printing for our questions are warded through
selective tendering. This is the case to avoid leakages of our
examinations and award of contract to printers of doubted
integrity.” Chairman of the committee sustained the query because
the Registrar was unable to defend it.