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Violation of Procurement Act: Reps threaten to handover firms with ‘doctored’ tax certificates to EFCC, ICPC .

APPARENTLY disturbed by the plethora of underestimated and ‘doctored’ tax certificates submitted by companies at the ongoing probe on violation of Procurement Act, the House of Representatives Committee on Public Procurement, yesterday, threatened to handover them to anti-graft agencies for prosecution.

The committee is investigating alleged abuse and breach of the Public Procurement Act of 2007. The lawmakers in session also summoned former Ministers of Finance, Dr Ngozi Okonjo-Iweala, Esther Nenadi Usman;former HoS,Steve Oronsaye; former AGF, Jonah Otunla, and all permanent secretaries of Ministry of Finance from 1999 till date.

Firm collected $120m contract, paid N20,000 tax Chairman of the committee, Oluwole Oke (PDP, Osun), who was angered by what the committee had seen in the last four weeks of investigative hearing, declared:  “It’s alarming that a company that collected a contract of $120 million paid only N20,000.00 as tax to the Federal Government. “To say the least, it is annoying and those are the things this investigative hearing is trying to correct.

“We have documents submitted by companies that are at variance with what FIRS, BPP, NSITF, PenCom and ITF gave us and you all know that our children and siblings benefit from ITF and if the right amount is not paid, how will they get trained?

Henceforth, we’ll not hesitate to handover such companies to anti-graft agencies.” Why ex-Finance ministers were invited On why former ministers of finance were summoned, Oke explained:  “We invited them to come and defend themselves and let us know the roles they played within the period of their stewardship. “The essence of this invitation is to enable the investigative hearing have a balanced position on all issues.”

Adeosun insists due process was followed Earlier in her presentation, Minister of Finance, Mrs Kemi Adeosun, said: “It’s pertinent to start by stating that the process of procurement of consultants for pre-shipment inspection and monitoring of crude oil and gas exports from Nigeria, which the National Assembly is calling for investigation into allegations of abuse, breach and violation of the Procurement Act 2007, is still ongoing. “The ministry embarked on the procurement process for the appointment of pre-shipment agents and monitoring of oil and gas exports in February 2016 based on BPP’s approved invitation for expression of interest duly published in two national dailies and the Federal Tenders journal of February 8, 2016, soliciting expression of interest of bids from competent and reputable consultants for engagement as pre-shipment inspectors and monitors of oil and gas exports. “A total of 67 companies were pre-qualified of the 166 that expressed interest, while 49  passed the quality based selection, having scored 70 percent and above. “It’s relevant to reiterate that from the beginning of the procurement process till date, the ministry has been working closely with BPP, having obtained necessary approvals, including advertisements, Request for Proposal (RfP) and approval to adopt quality based selection method to select the consultants. “However, there is need to point the following:

There was no procurement plan because the NESS is statutorily self-financing and is not expected to be included in the annual budget. Therefore, budgeting is not applicable. “The delay in concluding the procurement of the consultants was because of various procurement processes, which include expression of interest, advertisement, bid opening,  evaluation, request for proposal, and request for certificate of No Objection from BPP.” At this point of her presentation, the lawmakers took her up and asked her to read out the relevant portion of the Act to the hearing of all present. Oke replied the minister:  “We totally disagree with you that because a project is self-sustaining, it does not require a budgetary approval from NASS.

“Honourable Minister, we are here to guide you properly so that you don’t make mistakes,  even BPP is here to guide you but there is nothing like a self-sustaining project that does not require approval because everything must be appropriated.

“There’s is need to act on those PIAs that their contracts were terminated as they are still working at the terminals and their workers have not been paid salaries for several months. Consider the plight of the workers and act fast on their matter.  We appeal on their behalf.’’ The minister thanked the lawmakers and took a bow out out of the session.

Source: Vanguard