FEC suspends project memos requiring cost variation

Add as a preferred source

The Federal Executive Council (FEC) has suspended all memoranda requiring cost variation for projects undertaken by all Ministries, Departments and Agencies (MDAs).

This followed deliberations on the memoranda submitted for the council’s consideration and possible approval on Wednesday by the Minister of Works, Dave Umahi.

According to the Minister of Information and National Orientation, Mohammed Idris, who briefed correspondents after the meeting along with his Justice; and Budget and Economic Planning ministers, Lateef Fagbemi and Atiku Bagudu respectively, the decision was taken to step down the memoranda to enable a proper review of the projects.

Noting that most of the projects involved were inherited from preceding administrations, he said FEC directed that the Attorney General of the Federation to work with the Works minister to ensure that they comply with budgetary provisions.

Idris stated that the essence of the review is to stem the tide of abandoned projects in the country.

He said the consideration of the memoranda will continue at the next meeting of the council.

The government spokesman stated: “So today, we didn’t have so many projects that were approved as a result of that, but of note is to say that Mr President, in line with his thinking of ensuring that there is probity, proficiency and diligence in project execution, has directed that all projects that require additional funding, especially major projects of the Ministry of Works, be looked at once again so that there will be further deliberation on that at the next council meeting.”

The council has also directed all the MDAs to review their intended procurements to ensure that the funds budgeted align with funds available for the projects.

Minister of Budget and Economic Planning, Bagudu, who spoke on this, said the directive was in line with President Tinubu’s “desire to enhance more fiscal discipline and further demonstrate to Nigerians our commitment to serving them better, raised the issue of the reconciliation between the appropriation act, public procurement law and the fiscal responsibility act.”

He further explained: “The FEC has set up a committee under the chairmanship of the Attorney General and Minister of Justice to review the Public Procurement Act.

“However, after a robust discussion, the president directed that all ministries department and agencies should review their intended procurement as provided for in the appropriation such that where there are gaps between appropriated sums and sums required to execute the projects, that can be brought to the attention of both the Ministry of Budget and National Planning and Federal Ministry of Finance, such that the memo that the cabinet secretariat will provide to the FEC, will have clarity of where funding is expected to come from and recommendation so as to guide effectively the Federal Executive Council decision.

“Mr. President directed that the report of the public procurement committee be provided to him so that can take decisions accordingly.”

READ ALSO FROM NIGERIAN TRIBUNE