The House of Representatives on Wednesday quizzed Director General of National Institute of Pharmaceutical Research and Development (NIPRD), Dr. Peter Adigwe, over alleged mismanagement of N4 billion COVID-19 intervention fund between 2020 and 2022.
Speaking during the investigative hearing, Chairman, House Committee on Public Accounts, Hon. Bamidele Salam, frowned at various infractions observed in the audit queries issued by the office of the Auditor General of the Federation (oAuGF).
The DG responded to various questions raised by the lawmakers on the award of multi-billion naira above the approved threshold as well as non-remittance of statutory deductions namely: Stamp Duty, Value Added Tax (VAT) and Withholding Tax (WHT) before payment to contractors.
In his response, NIPRD Director General, Dr. Peter Adigwe, who argued that the agency played a lead role in the series of research carried out during and after the COVID-19 pandemic, disclosed that from the total sum of N4 billion approved for the Institute, N2 billion was approved for capital projects while N2 billion was for recurrent expenditure.
He however confirmed that a higher percentage of the N4 billion was used for implementation of capital projects including equipping of 15 laboratories in NIPRD and 5-storey facility, in breach of the Appropriation Act.
According to the documents submitted to the Committee, NIPRD awarded contracts for the supply of 33,000 litres of AGO (Diesel) worth N14 million in October, 2022; while series of contracts were also awarded in 2023 from the COVID-19 intervention fund through illegal virement in breach of extant financial regulations.
During the investigative hearing, the lawmakers who accused the NIPRD helmsman of committing various financial infractions, queried Dr. Atigwe for failing to sign the minute of one of Tenders Board resolutions where various contracts were approved.
The lawmakers also demanded the whereabouts of the excess funds worth over N60 million being the recommendations of Bureau of Public Procurement (BPP) which reviewed the contracts awarded to three companies downward during the period under review.
The lawmakers who were visibly furious over the level of infractions observed during the period, disclosed that BPP reduced the cost of one contract by N41 million and another contract by N12 million.
They further alleged that some of the contracts were paid fully before the review by BPP.
When asked about the approved threshold for heads of agencies, Dr. Atigwe disclosed that he has approving power of up to N10 million for services and N20 million for works.
However, the lawmakers who frowned at the Institute’s activities demanded relevant approvals for various contracts worth N535 million, N549.392 million and over N699.179 million, N685.691 million among others paid for by the Institute as well as remittances with respect to statutory deductions of WHT, VAT and Stamp Duty.
When asked whether the NIPRD Director General secured approval after the end of COVID-19 pandemic from relevant approving authorities including the Ministerial Tender Board, Dr. Atigwe, who earlier argued that all the contracts above his approving threshold were within the Tenders Board threshold and in line with the Emergency procurement guidelines, urged the Committee to allow him to verify.
Contrary to his earlier submission that he complies with BPP’s circular, explained that he got both pre and post approval from BPP and the Ministry, however reversed himself saying he had post engagement with the relevant authorities.
In the cause of justifying the rationale behind the virement of the COVID-19 intervention fund, Dr. Atigwe lamented that the sum of N175 million (less than $150,000) approved as capital expenditure in 2023 was not released till date, adding that the Institute has not been adequately funded for about 10 years.
Speaking on the activities of the Institute, Dr. Adigwe, who noted that the Institute was the first organisation in the world that carried out research on the viability of the purported anti-COVID-19 product developed by the Government of Madagascar, developed product during the COVID-19 and that NIPRD undertook the first categorical analysis of that product in the world.
According to him, it was based on the Institute’s analysis that the product was not distributed, adding that the Institute also developed five products which received NAFDAC listing.Â
He added that the Institute also undertook seven research interventions.
He also argued that after the downward review of the contracts awarded to the three contractors, BPP said the contractors should supply additional equipment for the N765 million but noted that the contractors couldn’t supply them.
He also affirmed that the sum of N76 million was mopped up by the Government against N60 million, hence the lawmakers requested for evidence of the fund mopped up from the office of Accountant General of the Federation.
After the cross examination of the documents and presentation made by the NIPRD Director General and his team, Dr. Atigwe informed the Committee that the N765 million was not paid to the Contractor but utilised for other projects in the Institute.
He also noted that the statutory deduction from the 30 percent mobilisation fee paid to the contractors were not detected to enable the contractors to perform effectively. He however noted that the money was deducted later.
The Committee also requested that the bill of quantity and scope of the contracts awarded be submitted to the Committee.
While noting that OAuGF also raised three audit queries against NIPRD on some contracts awarded without performance, Hon. Salam maintained that the discretional utilisation of the N4 billion approved for the Institute was a major offence that is punishable under the extant financial law and regulations.
He maintained that it does not lie in the power of NIPRD Director General to use the money for whatever he feels is appropriate, hence should have solicited for National Assembly’s approval through relevant Standing Committees for virement.
He further observed that the NIPRD helmsman cannot sit in the comfort of the Institute and turn himself to an approving authority by usurping the powers of the National Assembly.
While stressing that the NIPRD Director General committed about three offences as provided by extant financial regulations, he ruled that the Institute should reappear at a date to be communicated.
To this end, the lawmakers unanimously resolved to invite some of the companies that the multi-billion naira contracts were awarded to.
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