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Contractors in CBN, Ministries and MDAs inflated contracts by N26.86 billion – Reports 

The Bureau of Public Procurement (BPP) has disclosed that it saved N26.86 billion for the Federal Government in 2018, through a downward review of inflated contracts by the government ministries and agencies.

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The Bureau of Public Procurement (BPP) has disclosed that it saved N26.86 billion for the Federal Government in 2018, through a downward review of inflated contracts by the ministries and agencies of government.

According to the Bureau’s annual reportthe total amount saved stemmed from the review of contracts awarded to contractors by various Ministries, Departments and Agencies (MDAs) and the Central Bank of Nigeria before being given a certificate of “No Objection’’ by the bureau. 

The report shows that out of the inflated amount saved, the highest amount of N22.22 billion was recorded from the Ministry of Power, Works and Housing. The money was saved from an initial request of N877.40 billion.

The report reads: “Contracts earlier approved under the Ministry of Petroleum Resources was reduced from N278.91 billion to N278.64 billion, resulting in savings of about N271 million. 

N1.37 billion was saved on projects from the Ministry of Transportation from an initial request of N76.22 billion and from the Ministry of Water Resources, N521 million was saved out of N13.12 billion. 

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Also, from the Ministry of Finance, N143.72 million was saved from a request of N3.54 billion, while N33.65 million was saved from the Central Bank of Nigeria’s (CBN) initial request of N1.47 billion. 

It was further disclosed that the sum N494.96 million was saved from various military contracts from an initial request totalling N123.82 billion for the procurement of critical equipment. 

In addition, savings of about N8.04 million was made from various contracts under the supervision of the Ministry of Interior, from an initial request of N9.23 billion.  

Lastly, the procurement bureau also saved N104 million out of an initial request of N936.75 million by Federal Radio Corporation of Nigeria for the procurement of broadcast equipment for 2019 general elections. 

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More details: According to the Bureau, the public procurement activities in most MDAs are laced with secrecy and not in line with international best practices. While providing further details, BPP noted that the reported cases being prosecuted in the courts by the EFCC and the ICPC were clear testimony of the breaches in the MDAs.  

“The degree of the reported cases being prosecuted in the courts by the EFCC and the ICPC are clear testimony of the breaches in the MDAs. 

“As observed in most cases, the procurement officers collude with the contractors and service providers to breach certain provisions of the BPP Act for their selfish reasons. 

“These breaches range from faulty bid solicitation process, advance exposure of the bidding criteria to their preferred bidders and overlooking forged procurement statutory documents during the technical and financial bid process. 

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“They also give out in-house prices of contracts to their preferred contractors and service providers which serve as an advantageous guide in their financial bidding, among other numerous breaches of the Act. 

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“Procurement officers, who are known to be colluding with the bidders to breach the Act, have not been reprimanded enough to deter them from their offences,’’ the Bureau reports. 

Meanwhile, the report showed that no savings were made from contracts under the Federal Capital Territory Administration, Ministry of Environment and the Ministry of Budget and National Planning. 

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Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Companies

GCR affirms Dangote Cement issuer ratings of AA+(NG) and A1+(NG)

Global Credit Ratings has affirmed Dangote Cement issuer ratings of AA+(NG) and A1+(NG).

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Dangote Cement Plc has announced that Global Credit Ratings has affirmed the cement manufacturer a long-term and short-term national scale issuer ratings of AA+ (NG) and A1+(NG) respectively.

According to the press release issued by the company, the rating which maintains a stable outlook on Dangote Cement would expire by November 2021.

In line with this, GCR reviewed existing bonds of the company and assigned the N100bn Series 1 Fixed Rate Bond of Dangote Cement a rating of AA+.

Why this matters

  • The ratings reflect Dangote Cement Plc’s status as Africa’s leading integrated cement manufacturer with a group-wide installed capacity of 45.6 million metric tonnes per annum across ten countries.
  • The stable outlook which was maintained by GCR reflects the extensive distribution network, significant scale economies and position as the largest corporations on the Nigerian Stock Exchange, with sound access to capital.
  • It is important to note that a rebound is expected within 18-24 months, on the back of strong base domestic demand.

What they are saying

Michel Puchercos, Chief Executive Officer, said:

  • Dangote Cement has shown great resilience in 2020 despite the COVID-19 pandemic and a challenging environment. The Group continues to report strong cash generation while maintaining strong financial discipline. As Africa’s leading cement producer, we are committed to maximizing shareholder value creation.”

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Coronavirus

Governor Sanwo-Olu says 24,000 students yet to resume in public schools

24,000 students in public schools are yet to return back after the reopening of schools, according to Governor Sanwo-Olu.

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The Lagos State Governor, Babajide Sanwo-Olu, has revealed that about 24,000 students in public schools are yet to come back after the reopening of schools following last year’s lockdown necessitated by the first wave of Covid-19 across the country.

This is as the governor said that resumption of school activities Monday, January 20, 2021, was a difficult decision to make in light of the second wave of Covid-19.

This disclosure was made by the governor while peaking during a press conference on Covid-19 update at the Lagos House, Ikeja on Tuesday.

Sanwo-Olu assured that it was the best decision for the children’s safety and long-term development, especially the most vulnerable ones.

What the Lagos State Governor is saying

Sanwo-Olu in his statement said, “Last year after the first lockdown and kids have to come back to school, we are still looking for about 24,000 of them that have not come back to school. So, there is a challenge if you keep them out for that long and their parents or guardians now turn them to other things instead of ensuring that they have time to come back for learning even if it is twice or thrice a week.

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“At least they have been registered since the beginning of a session and they can be monitored. If not, they will just be roaming the streets and become endangered. We have seen incidents of child abuse and all unprintable things that are being done to these children. So, we believe to a large extent that schools sometimes happen to be the safe haven for them. We have done the roster in which we ensure they keep social distance and we are monitoring,” he said.

What you should know

  • It can be recalled that public and private schools below the tertiary level in Lagos State, On Monday, January 18, 2021, reopened for academic activities despite opposition from some stakeholders due to the second wave of coronavirus pandemic in the state.
  • Following the surge in the number of infections in the state, which is the epicentre of the disease in the country, there were complaints about the state of preparedness of the schools, especially the public ones, in adhering to the strict Covid-19 protocols and guidelines.

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Around the World

Breaking: Joe Biden sworn-in as the 46th President of the United States

The whole world watched in awe as Joe Biden was sworn in as the new President of the United States.

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Joe Biden has been sworn in as the 46th President of the United States.

The 78-year-old Democrat and former Vice president to Barack Obama is being sworn in after emerging the winner of last year’s Presidential elections.

Biden’s running mate, Kamala Devi Harris was sworn in as vice president by Justice Sonia Sotomayor, becoming the first woman and the first black and Asian-American person elevated to serve in a role a heartbeat from the presidency.

The inauguration took place at the US Capitol, the same building that was stormed on January 6, by Donald Trump’s violent supporters.

Trump who for months refused to conceded to Biden’s victory at the polls left the White House for the final time hours earlier and flew to Florida after making it clear weeks ago that he will not be attending the inauguration.

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Trump’s Vice, Mike Pence attended the ceremony, as he skipped Trump’s farewell military salute event at Andrews base.

The ceremony includes musical performances by Lady Gaga – who sang the national anthem – as well as Jennifer Lopez and Garth Brooks.

Former Presidents; Barack Obama, George W. Bush and Bill Clinton were all present at the inuaguration

What you should know

  • At 78, Biden is the oldest president ever to take the oath of office.
  • In his speech, Biden swore to defend the constitution and the country “against all enemies, foreign and domestic”.
  • History was made as Kamala Harris became America’s first female, first Black and first Asian American vice-president.
  • Donald Trump skipped the ceremony, becoming the first president not to attend his successor’s inauguration since 1869.

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