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NDDC, AG, AGF disagree over N70.4b phantom contracts in Niger Delta


Drama ensued in Senate on Monday as Auditor-General for the Federation, Accountant General of the Federation and Niger Delta Development Commission disagreed over N70.4 billion phantom contracts in Niger Delta.

While both Auditor-General and Accountant General insisted the total amount of fathom contract is N70.4billion while appearing before Senate Committee on Public Account.

However, the representatives of NDDC, Mr. Jimoh Egbejula claimed that amount of fathom contract is N11 billion.

This is contained in the Report on Special Periodic checks on the Activities of Niger Delta Development Commission for the Period between 2008 & 2012.

The Auditor-General for the Federation represented by Emmanuel Akpan   explained that it is a common practice for the commission’s contractors to collect mobilization and refuse to move to site.

He said that records available to the team revealed that sum of N70.4 billion were collected as mobilization payments by 1,723 contractors without going to site

The report submitted to Committee reads, “Records available to the team revealed that sum of N70 billion was collected as mobilization payments by 1,723 contractors without going to site.

“90 percent of these contracts were awarded between 2011 & 2012. It needs to be stated that some of these contractors have three to four jobs without reporting site.

“One can therefore imagine why the region is not developed, when a developmental programme is being awarded as contract to be completed within six months and the contractors would collect mobilization without reporting to site

“It is common practice for the Commission contractors to collect mobilization and refuse to move to site. 

“The blame for this should not only go to the contractors but equally to the management of NDDC who awarded that were not inexistence(I.2 contract without identification of site)  resulting to non-reporting to site by the contractors.

“Besides the above, it was also observed that about 50 percent of the contractors who claimed they have executed their various contracts to specification and completed with supported engineer’s valuation certificate were later found out by the team that some merely collected money for work not executed.

“In the auditor’s opinion, these ugly trends will continue in the system in as much as the same class of people was recycling in the management and board for the commission.”

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