N8.6bn paid to microfinance bank for construction of roads in 2023 queried

TRACKA, BudgIT’s service delivery promotion platform, which allows citizens to collaborate, track, and give feedback on public projects in their communities, has uncovered a total of N9.3 billion paid by the Federal Ministry of Works to FIMS Microfinance Bank Ltd. between June and December 2023   for   62   projects,   including the construction of road projects across the country, amongst others.

Some of these projects, as revealed on the Govspend platform, include the payment of  N1.4 billion in September 2023 for the construction of Yaba-Yangoje Road in the Federal Capital  Territory; the payment of  N1.2 billion in October 2023 for the rehabilitation of a 2km road from Oriawo-boroboro-oke-medina School of Science Road in Atiba, Oyo State; the payment of N1.2 billion in October 2023 for the rehabilitation of Kosobo-Awe Junction Road in Oyo East  LGA in Oyo State; and the payment of N1.2 billion between August and November 2023 for the rehabilitation of Ejule-Otukpo Road in Benue State, to mention but a few.

According to its mission statement and the information on its website, FIMS Microfinance Bank Ltd. was incorporated on December 11, 2009, to conduct microfinance businesses/services with a certificate of incorporation number RC 858800.

According to Tracka, as a financial institution, the award of road construction contracts amongst others to this company is a violation of the Public Procurement Act 2007.

Specifically s.16 (6) (a) (i), (iii), and (iv) as stated, “All bidders in addition to requirements contained in any solicitation documents  shall:   (a)   possess   the   necessary:   (i)   professional   and   technical   qualifications   to   carry   out  particular   procurements;   (ii)   financial   capability;   (iii)   equipment   and   other   relevant  infrastructure; (iv) shall have adequate personnel to perform the obligations of the procurement  contracts.”

The organisation requests that the Minister of Works, David Umahi, tenders an explanation to Nigerians on how these repeated violations and infractions occurred in his office.

In addition, “we call on the Bureau of Public Procurement to review the transactions for violating the Public Procurement Act 2007 and serve appropriate sanctions for breaches where identified.

BudgIT’s Country Director, Gabriel Okeowo, speaking on the gross mismanagement of public funds and blatant disregard for public procurement laws, emphasised that public funds should be treated with the highest level of caution and a sense of responsibility to the collective interest of Nigeria and its people.

“We have submitted   a   Freedom   of   Information   (FOI)   letter   to   the   minister,   seeking   the procurement documents related to these payments to assess whether the transactions complied with the law and anticipate a response within seven days as the FOI Act mandates.” Okeowo, BudgIT’s Country Director, said.

“We call on the anti-graft agencies—the Independent Corrupt Practices Commission, ICPC, and the Economic and Financial Crimes Commission, EFCC—to question and probe these payments and prosecute the erring officers. We also call on Nigerians to pay attention to the disbursement  of public funds using www.govspend.ng and report any irregularities, “ Tracka stated.