Revelations have emerged on how the Ministry of Defence spent about N1 billion on the production and supply of medals and ribbons for Independence Anniversary for the Armed Forces without due process.
It was learnt that there was no Ministerial Tender Board and approval from the Federal Executive Council before the money was paid at two instalments.
Officials of the ministry have also shunned repeated invitations from the Senate Committee on Public Accounts probing the alleged misconduct.
The payment for the contract was facilitated despite the objection raised by the Deputy Director (Budget) in a memo dated April 24, 2013.
The revelations are contained in an Auditor General of the Federation (AuGF) report submitted to the Senate Committee on Public Affairs.
The committee chairman, Senator Matthew Urhoghide, said series of invitations had been extended to the ministry with no response.
According to him, the committee has no option than to sustain the query against the ministry.
The report indicated that the contract was awarded in 2010 with 50 per cent of the contract sum paid and the balance paid in January 26, 2015 to the contractor.
The query reads, “The Permanent Secretary of the Ministry is expected to recover N968 million for the contractor and forward the payment for audit verification.
“A memo, dated 24th April, 2013, raised by DD (Budget), had expressed misgivings about the way and manner the contract was awarded, further raising the doubt on the lack of transparency
“A contract for the production and supply of medals and ribbons for Independence Anniversary for the Armed Forces of Nigeria was awarded at a total contract sum of N968,830,000.00 …
“The entire contract sum had been paid in January. The sum N484,415,000.00 (Four hundred and eighty-four million, four hundred and fifteen thousand naira) was paid in 2010 representing 50% of the contract sum and the balance of N484,415,000.00 was paid on 26/01/2015 vide Payment Voucher No. 4001.
“Further examination of the payment voucher attachments revealed the following irregularities:
“There was no evidence of any Ministerial Tenders Board Meeting that considered this award, contrary to Financial Regulation 2921(i).
“The approval of the Permanent Secretary for the payment of the balance of N484,415,000.00 is above his approval thresh hold.
“There was no evidence of Federal Executive Council approval, together with the Bureau of Public Procurement ‘No Objection Certificate.
“A memo, dated 24th April, 2013, raised by DD (Budget), had expressed misgivings about the way and manner the contract was awarded, further raising the doubt on the lack of transparency.
“The items (ribbons and medals) were not taken on Store Charge because there was no Store Receipt Voucher produced, in violation of Financial Regulations 2401 (i).
“The total sum of N968,830,000 paid in respect of this contract could not be admitted as a legitimate charge against public funds.
“The Permanent Secretary has been requested to recover the sum of N968,830,000.00, forwarding evidence of recovery to this office for audit verification.”
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