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NEMA: Presidency approved N2.4bn for procurement of rice for IDPs

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KEHINDE AKINTOLA, Abuja
The Director-general of the National Emergency Management Agency (NEMA), Mustapha Maihaja, on Wednesday, disclosed that N2.4 billion was approved by the Presidency for procurement of rice for Internally Displaced Persons (IDPs) in six North East states.
Maihaja made the claim during an investigate public hearing into the alleged violation of public trust in NEMA, held at the instance of the House Committee on Emergency and Disaster Preparedness, held at the National Assembly complex, Abuja.
He dismissed allegations bordering on price inflation and infractions in the cause of awarding the contract and stated that requisite regulations were duly adhered to on procurement under emergency situation.
According to Maihaja, the request for the procurement of 100,000 metric tonnes of rice became necessary following the threat by international agencies to cut food supply to the IDP camps by 85% in 2017.
He added that contracts worth of N2.4 billion were awarded to Olams Nigeria Limited and N600 million to Three Brothers for the supply of rice to Borno, Yobe, Adamawa, Taraba, Gombe and Bauchi states respectively.
All the rice procured was delivered at NEMA warehouses in the six benefitting states for onward distribution to the IDPs, he added.
Maihaja denied allegations that total sum of N2.4 billion had been paid to Olams Nigeria Limited and argued that the money paid so far was based on the amount invoiced for the rice supplied so far.
The Committee also asked the agency why an officer other than a procurement officer had to sign award letters.
Maihaja said the agency was forced to approach the Presidency for the procurement of the materials because development partners withdrew 85 percent of their funding support.
While availing the Committee with the copy of a approval letter, he explained that the agency could not award a procurement contract above N300 million.
“We insist that due process be followed on procurement since my assumption of duty in April 2017 because different methods were used before then with serious resistance from within and outside.
“Today, NEMA is one of the most investigated agencies but due process was followed in our procurements.
“On the 10,000 metric tons of rice, we complied with the Procurement Act, the agency sought Presidential approval for the procurement 10,000 metric tons of rice at N3.1 billion for emergency purposes in the North-East.
“The approval was signed by the Vice President in a letter by the Deputy Chief of Staff. The contract was awarded to two companies, as well as logistics companies for delivery.
“The contractors don’t get paid until deliveries are confirmed by the recipient agencies.
“Also, the deliveries directly to by NEMA are taken to our warehouses across the country and confirmed by our store officers before payments are made,” he told the lawmakers.
Responding to inquiries, Maihaja explained that prior to his assumption of office, there was no professional procurement officer deployed to the agency and that he formally requested for the deployment of a trained procurement officer.
According to him, there was no procurement unit in the agency as at the time he assumed duty, while junior planning officers on Level 12 were performing the duties.
“Junior Planning officers cannot sign the contract award and being an emergency situation, in all sincerity, the Director Relief was asked to sign the documents.
“We also have a comprehensive store system, as well as other mechanisms for confirmation of delivery of relief materials.
“My action was done with utmost sincerity, there was no intention to sidetrack anyone in this responsibility. We have a store system and other units to take charge of materials, the Director Relief is not in charge of stores,” he said.
Maihaja said the sources of the agency’s funding include Ecological Fund, which was N10.3 billion within the period under review as well as from Appropriation Act.