Senate to investigate NIMC over N229m contract

The Senate Committee on Public Accounts is investigating the National Identity Management Commission (NIMC) over the award of N229 million contract.

The agency is accused of non-compliance with Public Procurement Act in the contract award.

The Senate Committee’s judgement is premised on the findings of the 2017 report of the Auditor General of the Federation.

According to the report, the Office of the Auditor-General observed that “there was no evidence of Ministerial Tender’s Board approval, thus, negating the mandatory ‘Open Competitive bidding.”

There was also a payment of 45 per cent of the contract sum as against the mobilisation fee of 15 per cent while subsequent payments were not also backed by an interim performance certificate as required by Section 35(2) of the public procurement Act 2007.

The query reads, “Audit observed that capital payment vouchers reference number: NIMC/LS/IGL/1/11/105, dated 25th October 2017 for ₦229.7 million showed that NIMC procured 22 units of HP blade servers for Morpho BSS upgrade.

“The items were supplied. There was no evidence of Ministerial Tender’s Board approval, thus, negating the mandatory ‘Open Competitive bidding. Public advertisement in at least two national dailies, as required by Financial Regulation 2907 (1) and section 251(ii) of the Public Procurement Act was absent.

“There was an initial payment of ₦103.4 million vide payment voucher number NIMC/01/016 CA/18 dated 19/01/18, representing 45 per cent of the contract sum as against the mobilization fee of 15%. The other subsequent payments were not also backed by an interim performance certificate as required by Section 35(2) of the public procurement Act 2007.

“This is an indication of weakness in the internal control system at National Identity Management Commission (NIMC).

“This could lead to poor value for money and possibility of misapplication and misappropriation of funds.
The Auditor General’s report also noted that “No response was received from management at the time of our report,” while it recommended that “The Director-General is required to refund the sum of ₦229 million.”

Director-General of NIMC, Aliyu Abubakar Aziz, in his defence, however, claimed that the contract was within the threshold of the Commission’s Tenders Board because it is classified under ‘works’.

He said that all the servers had been supplied before the initial payment of 45 per cent which represents part payment and not mobilisation due to paucity of funds.

He further informed the committee that the amount was meant to procure 22 blade servers to accommodate 20 million enrollment records.

He also said that the contract was a continuation of procurement of Enterprise Servers and Storage Solution and Equipment which was awarded in 2012.

He said the Commission would on Wednesday submit N25 billion proposal to buy more server.

The Committee chairman, Senator Mathew Uroghide, said that it was wrong for the Commission to continue with the 2012 Procurement process in 2017.

The Chairman said: “We are supposed to do a status enquiry on your Commission because it looks like all your documents are muddled up.”

The Committee, therefore, mandated the DG, NIMC to appear again next week and come with more documents to back up his claims.

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Senate to investigate NIMC over N229m contract