THE Federal Government said it has uncovered a scam worth about N423 billion in contracts awarded by the Ministry of Niger Delta Affairs between 2009 and 2015.
The Federal Executive Council (FEC) has now given the go-ahead for probe of the contracts and those found culpable punished.
This was part of the outcome of the council meeting presided over by acting President Yemi Osinbajo at the Presidential Villa, Abuja on Wednesday.
Briefing State House correspondents on the matter, Minister of Niger Delta, Usani Usani said the scam was unearthed by a Project Technical Audit Committee commissioned by the ministry.
The report was considered by FEC.
He said the sum of N423 billion was 60 percent of the N700 billion appropriated for the project during the period which until now had only achieved 12 percent implementation.
He said: “The revealing content of the report shows that over N423 billion has been expended in the region by the ministry alone not other intervening agencies.
“From this amount, project execution rate has been at 12 per cent, with an average completion rate of a project standing at 5 years. And the impact rate is 8 per cent.
“So, today we have sought approval from Council to have the recommendations of this report conveyed to the legitimate agencies charged with the statutory responsibilities of recovering government assets that are either misappropriated, misused or found to be idling in some quarters.
“With this, it means all those who have accessed government resources for one purpose or another must be compelled to make adequate use of same. Otherwise, face the recommendations that go with such violations. And that is our position concerning that report. And we have got Council approval for that.
“It is also important to place emphases on the fact that in the region of 60 percent resources in terms of funds had been paid out to contractors with that 12 per cent completion rate.
“When we say 60 percent, it is 60 per cent of the amount of money that was actually appropriated, being N700 billion.
“And so, 60 percent of that constitutes N423 billion.
“So, to find that N423 billion has been expended in the region with the type of result we see, obviously shows that there is something tangibly and obviously wrong with how procurement had been carried out in the ministry.”
While noting that the number of contracts awarded or projects carried out were 427, Usani said action to be taken against erring contractors would not be uniform.
According to him, “The measure of action to be taken to address the shortfall of our expectations of commitment to contractual commitments will be the determinant of what will be done.
“So, those that require sanctions will be sanctioned. And the sanctions may not be uniform. It will also be according to the measure of liabilities owed by each of those contractors.
“Some should be compelled to return to site; some of course, should be made to refund money: those who we have seen by action displaying criminal intent by collecting money and not appearing at site at all.
“And the report is not just all about punishing people. There are also those who have performed well and are commended and the report recommends that they should be encouraged to carry on in their contractual commitments.”
FEC also approved a joint venture agreement between the Federal Government and May and Baker Plc to produce vaccines from 2017 to 2021.
Minister of Health, Professor Isaac Adewole, who briefed on the issue said the Federal Government would own 49 per cent of the joint venture while May and Baker will own 51 per cent.
He said the Federal Government would put in N1.27 billion while May and Baker would provide N1.3 billion.
Adewole said: “What council did today was to put life into this joint venture agreement that proposes to establish a company called Bio-vaccines Ltd which will be jointly owned by Federal Government of Nigeria and May and Becker Plc.
“The board of the company will comprise seven people, four from May and Baker and three from Federal Government.
“The company between 2017 and 2021 will produce basic vaccines that we need.
“We have considered vaccines as a security issue. It is not only health but we need to consider the security of all Nigerians particularly our children.
“So, with this agreement, we will be able to produce those command vaccines and from 2021 and beyond. Every other vaccines that are necessary will also be out in board for administration to Nigerians.
“We are quite happy that today it has taken place and we believe that Nigeria has started a journey to vaccines security.”
and then