House of Representatives on Wednesday resolved to investigate allegations bothering on abuse, breach and violation of the Public Procurement Act, 2007, in the engagement of consultants for pre-shipment inspection and monitoring of crude oil and gas exports from Nigeria.
The resolution was passed following the adoption of the motion sponsored by Babatunde Kolawole, who alleged that the tendering process had been fraught with abuses by vested interests in the Federal Ministry of Finance who were selecting non-responsive companies that do not meet basic statutory requirements.
Kolawole while arguing the motion noted that the Pre-Shipment Inspection of Exports Act, Cap P26, LFN, 2004, which empowers the President of the Federal Republic of Nigeria to appoint inspecting agents to carry out pre-shipment inspection.
“In June 2015, the President mandated the Federal Ministry of Finance to commence the process of engaging pre-shipment inspectors and monitoring agents and based on the approval of the Bureau for Public Procurement (BPP), selective tendering was adopted.
“In December 2015, after the selection of 65 companies to participate in the biding stage, the Honourable Minister of Finance, ordered the immediate cancellation of the tendering process on the grounds of lack of transparency, accountability and on the basis of a formal complaint from the BPP.
“In furtherance of the above, the Federal Ministry of Finance initiated a fresh tendering process in February, 2016.
“The ongoing tendering process has been fraught with allegations of abuses by vested interests in the Federal Ministry of Finance who are selecting non-responsive companies that do not meet basic statutory requirements like possession of valid PENCOM Certificates as required by the Public Procurement Act,” Kolawole noted.
The lawmaker expressed concern that if urgent steps are not taken to investigate the allegations, non-responsive and incompetent consultants would be engaged which will undermine the entire pre-shipment inspection and monitoring exercise, thus leading to significant revenue losses.
While supporting the motion, Leo Ogor expressed displeasure over the engagement of companies with briefcases for lucrative contracts at the expense of competent ones.
He said there is need for a thorough investigation because if the minister of finance is engaging incompetent men and women as Consultants for Pre-Shipment Inspection and Monitoring of Crude Oil and Gas Exports from Nigeria, it will not augur well for the country.
In his remarks, Umar Jibril said the motion is important and deserve the support of all members.
Another member, Segun Odebunmi said its ironic “when you see the people that are saddled with the responsibility to make things right compromising.
“We must take the issue of the violation of the law seriously. Things must be done according to the laid down rules,” he said.
Speaking in favour of the motion, Raphael Nnana on his part wanted the prayer amended to include the committee on Finance in the investigation.
In his submission, Adeyinka Ajayi, chairman, House Committee on Aids, Loans and Debt Management urged that the House Committee on Finance should be included in the probe.
While ruling, Speaker Yakubu Dogara mandated the joint Committee on Public Procurement and Finance to investigate the allegations and report back to the House within five weeks for further legislative action.
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