Former Lagos State African Democratic Congress (ADC) gubernatorial candidate, Funso Doherty, has written to Attorney General of the Federation, Mr Lateef Fagbemi (SAN), alleging that the award of the Lagos-Calabar Coastal Highway construction contract by the Federal Ministry of Works to Hitech Construction Limited violates the Public Procurement Act (PPA).
Doherty said Minister of Works, Dave Umahi, confirmed that the award of the N1.06 trillion contract for the first 47.7km of the 700km coastal road project was granted on a single-source basis, without competitive tendering.
He asserted that this method does not comply with any of the lawful grounds for single-source procurement, as outlined in Sections 42 and 43 of Part VII of the Public Procurement Act.
- “You may be aware of the recent award by the FGN of the Lagos-Calabar Coastal Road contract to Hitech Construction Limited, a Chagoury Group Company.
- “The Federal Minister of Works, David Umahi, has confirmed that this 700km road contract that spans 9 states of the Federation was awarded on a single-source basis, without competitive tendering. The Minister has further disclosed that the road is expected to exceed N15 trillion. The first 47km of the road has been approved at N1.06 trillion and work has commenced.
- “As you know, the Public Procurement Act entrenches competitive bidding as a fundamental principle. It is true that Part VII of the Act allows for special and restricted methods of procurement in certain cases. However, single-source procurement, which is a special and extreme form of restricted procurement, is only permitted in emergencies outlined in Sections 42 and 43 of Part VII of the Act. Those Sections are reproduced as an attachment to this letter, for ease of reference.
- “It is clear that none of the lawful grounds for single-source procurement that are provided for in the PPA, validly apply to this contract award for the coastal road,” the letter to the AGF read in part.”
More insights
- The open letter further highlighted two suggestions from Doherty to the Attorney General of the Federation regarding the violation of the PPA in awarding the contract to Hitech for the coastal road project.
- His first recommendation urged the AGF to advise the Federal Government to halt the project and direct the Ministry of Works and the Bureau of Public Procurement to enforce compliance with due process, including competitive bidding as mandated by law.
- Doherty’s second recommendation to the AGF was to prosecute any instances of non-compliance that have occurred during the contract award process.
