FG loses N2trn to contracts awarded by MDAs in 7 years – Reps allege

The House of Representatives on Tuesday alleged that Federal Government lost whooping sum of N2 trillion during the process of contract awarded by Ministries, Departments and Agencies (MDAs) over the past seven years.

The resolution was passed sequel to the adoption of the motion titled: ‘Need for verification of moveable assets from contracts awarded by Government Ministries, Departments and Agencies (MDAs),’ sponsored by Kehinde Agboola (PDP-Ekiti) and seven other lawmakers.

In his lead debate, Agboola observed that Government Ministries, Departments and Agencies (MDAs) are not accountable for their assets or maintain adequate book keeping/records of assets as required by paragraphs 2106 and 2128 of the Financial Regulations.

The lawmakers alleged that most Ministries, Departments and Agencies (MDAs), in proposing award of contracts for capital, consultancy and supplies, make provisions for purchase of assets such as project vehicles, computers, earth moving equipment, among others, in their Bills of Quantity.

“The House is aware that those assets are usually never purchased or accounted for, and in most cases, the costs are deducted from final payment to contractors without any of the assets being traced, thus accounting for losses to the Federal Government of over N2 trillion in the last five years.

“The House is concerned about the practice of disposing assets without due process and the failure to pay the revenues amounting to over N50 billion accruing from them into Government coffers,” the Ekiti lawmaker noted.

Agboola who called for the intervention of the House, noted that if nothing is done to check these nefarious activities, corruption will remain endemic in the public sector and revenue leakages will persist.

While ruling on the motion, Speaker Yakubu Dogara mandated all relevant standing Committees to verify assets from contracts awarded from 2010 to date by Federal Ministries, Departments and Agencies and report back within 12 weeks for further legislative action.

Also at plenary, the House called on the Federal Government to direct the Ecological Fund Office and other relevant agencies to embark on erosion and flood control in the affected streets and environs to avert extinction of those areas;

The resolution was passed following the adoption of a motion sponsored by Johnson Agbonayinma (PDP-Edo), who expressed displeasure over the perennial flooding ravaging Eke street, United Street, Eke lane and adjoining communities of Upper Sakponba Road, in Ikpoba-Okha L.G.A of Egor/Ikpoba-Okha Federal Constituency, Edo State.

Agbonayinma who argued that the areas are on the verge of being submerged a result of perennial flooding, explained that “vast portions of land cave into the flood, taking along with them, houses, properties and humans who are unaware of the immense danger the flood portends,” whenever there is heavy down pour.

To this end, the House urged National Emergency Management Agency (NEMA) to send relief materials to residents of the affected streets to alleviate their sufferings.

While ruling, Speaker Yakubu Dogara also mandated the joint Committees on Environment and Habitat to visit the erosion sites and make recommendations within eight weeks on measures towards ensuring a permanent solution to the menace.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s