An investigative report into the Ministry of Niger Delta, created in 2008 by the former president, late Alhaji Umaru Yar’Adua, has indicated that there has been no significant impact of the contracts awarded by the ministry between 2009 and 2015 on the people in the region.
The ministerial technical committee formed to investigate the contracts between the time frame revealed that only N427 billion which is about 60 percent of N700 billion budgeted for the ministry during the period was disbursed.
The report further revealed that a total of N273 billion which was paid for a project had disappeared as the project remains unaccounted for.
The states included in the Niger Delta ministry, a project aimed at facilitating the development of the oil-rich region of the country include Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers state.
The committee which was set up by the incumbent minister, Uguru Usani who is an indigene of the region reported that very little of the projects awarded had reached final stages of completion in the years under review.
The committee which was set up to evaluate, based on the the availability of funds and overall impact on the living conditions of the benefitting communities, the progress of the projects awarded by the Ministry in the nine years under review said: “Sadly, very insignificant numbers of projects have reached practical completion to provide the sense of belonging expected by Niger Deltans across board.
“About 80% of the projects are either on-going, abandoned after payments, total abdication or refusal to deliver as in the case of Youth Capacity Building Programmes.”
In the report obtained by online news platform, Premium Times, the committee advised that the ministry terminate six projects awarded and demand refund of the amount awarded on two other projects.
The report further said: “The Federal Government well-intended intervention programme in the Niger Delta Region was poorly implemented six years after flag-off with serious consequences.”
The committee, detailing its investigation said the total cost of projects awarded within the period under review, 2009-2015, was N700,538,741,691.30 excluding services (security, rent and facility management). It further disclosed that N446,421,385,864.41 was certified for payment but N423,172,256,347.84 was paid.
In light of the investigative finding, the report said: “In other words, between 2009 and 2015, about 60% of contracts awarded were paid, but approximately 40% of work was practically achieved.”
“The way billions of naira are mentioned in construction projects value in the Ministry of Niger Delta Affairs has become so banal that very soon, it is believed that they are likely to escalate to trillions of naira, even though the values do not appear realistic vis-à-vis the value added to the region through such contracts.”
The report further noted the discrepancies observed in the provisions of vital aspects of the Procurement Act. It specifically noted the indiscriminate award of contract by initiating and benefiting departments without the leading and guiding role of the procurement department amongst other issues of violation.
“Awards never took cognisance of availability of funds and annual appropriation provisions.
“The structure and content of some contract agreements were loose for checks and balances, indeed hardly protect the interest of the ministry in case of disputes.”
“This manifestly, emanated from inconsistency in government annual budgetary provision and lack of capacity to deliver especially where funds released do not correspond with performance.
“Most contracts were awarded with specific dates of completion but were not captured in subsequent appropriations. This further exacerbated contractors’ poor performance and inability to achieve project objectives. Consequently, no capital project was completed within the stipulated time frame.”
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