LAGOS-CALABAR COASTAL HIGHWAY: REPS BEGIN PROBE
The house of representatives has resolved to investigate the procurement process in the award of the Lagos-Calabar coastal highway contract.
The lower legislative chamber passed the resolution during
plenary on Thursday, following the adoption of a motion sponsored by Austin
Achado, a lawmaker representing Gwer east/Gwer west federal constituency of
Benue.
The green chamber asked David Umahi, minister of works; Wale
Edun, his finance counterpart; and Lateef Fagbemi, attorney-general of the
federation (AGF); to furnish the national assembly with “all guarantees and
credit enhancement instruments” for the Lagos-Calabar coastal road project.
The federal government recently commenced the construction
of the 700km Lagos-Calabar coastal road, which is expected to run through the
shoreline of beach resorts in Lagos, while traversing eight other states.
The project, expected to cost N15.6 trillion, has sparked
controversy, with some Nigerians questioning the transparency of the contract
award process.
Atiku Abubakar, former vice-president; and Peter Obi,
ex-presidential candidate of the Labour Party (LP); have been some of the most
vocal critics of the project.
Recall the minister had even admitted, the award sidestepped
the public tender competitive bidding process. This raises the question of how
the cost was arrived at. The act is a breach of existing extant laws.
While moving the motion, Achado said the “award strategy” of
the road contract violates the Public Procurement Act 2007.
“This laudable
project with the prospect of providing easy access for movement of goods and
services across the nation, has a financing structure, as announced by the
honourable minister of works, which requires the federal government to provide
15 percent to 30 percent co-financing, while the private sector counterpart
will provide the balance,” the lawmaker said.
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“There are concerns that the Procurement Strategy may have
violated the Public Procurement Act 2007, section 40(2) which requires that
where a procuring authority adopts to use restrictive tendering approach, it
should be on the basis that the said goods and services are available only from
a limited number of suppliers and contractors and as such, tenders shall be
invited from all such contractors who can provide such goods and services.”
“The procurement strategy adopted by the federal ministry of
works for the award of the contract violates the Infrastructure Concession and
Regulatory Commission Act 2005.
“Section 4 of the Act outlines that all approved
infrastructure projects and contracts for financing, construction and
maintenance must be advertised for open competitive public bid, in at least
three national dailies, and section 5 of the Act further clarifies that any
direct negotiations with only one contractor could be allowed, only after
exhausting the provisions of section 4.”
Contributing to the motion, Unyime Idem, chairman of the
committee on public procurement, said parliament has received several petitions
demanding the investigation of the procurement process of the project.
The motion was adopted when it was put to a voice vote by
Tajudeen Abbas, speaker of the house.
Consequently, the lawmakers mandated the committees on
public procurement and works to investigate the matter, and report back within
four weeks for further legislative action.
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