Reps to probe allege abuse of crude oil, gas pre-shipment inspection

THE House of Representatives on Wednesday called for investigation of allegations of abuse, breach and violation of the public procurement Act of 2007 in the engagement of consultants for pre-shipment inspection and monitoring of crude oil and gas exports from Nigeria.

The committee on public procurement to investigate the allegations and report back to the House within five weeks for further legislative action.

The House resolution followed a motion moved by Hon. Babatunde Kolawole, who said that, pre-shipment inspection of exports Act, Cap. P26, LFN, 2004, empowers the President to appoint inspecting agents to carry out pre-shipment inspection.

He informed the House that, in June 2015, President Muhammadu Buhari mandated the Federal Ministry of Finance to commence the process of engaging pre-shipment inspectors and monitoring agents and based on the approval of the Bureau for Public Procurement, selective tendering was adopted.

He however said that, in December 2015, after the selection of 65 companies to participate in the bidding stage, the Minister of Finance, ordered the immediate cancelation of the tendering process on the grounds of lack of transparency, accountability and on the basis of a formal complaint from the BPP.

The cancelation he added, made the ministry of finance to initiate a fresh tendering process in February, 2016.

To this end, he said that, “the ongoing tendering process has been fraught with allegations of abuses by vested interests in the federal ministry of finance who are selecting non-responsive companies that do not meet basic statutory requirements like possession of valid PENCOM certificates as required by the public procurement Act”.

While raising concern on the development, he said that, ” if urgent steps are not taken to investigate the allegations, non responsive and incompetent consultants would be engaged which will undermined the entire pre-shipment inspection and monitoring exercise,  thus leading to significant revenue losses”.

Minority Leader, Hon. Leo Ogor and Hon. Odebunmi Segun supported the motion saying that if the nation must move forward, things must be done right.

The motion was supported by majority of the members when it was put to vote by the Speaker, Hon. Yakubu Dogara.