- Move To Probe Alleged N16bn Underhand Payments To Rodnab…
By Hamilton Nwosa (Head, The New Diplomat’s Business and Data Tracking Desk)
Concerned over unending petitions and escalating reports of alleged N40bn illicit expenditure by the Interim Management Committee (IMC) of the Niger Delta Development Commission(NDDC), the House of Representatives has summoned the Minister of Niger Delta Affairs, Chief Godswill Akpabio.
The lawmakers alleged that the purported expenditure was allegedly expended in clear violation of the elements of due process and the fiscal responsibility Act. They also noted that it is worrisome for the NDDC’s IMC to allegedly act in breach of financial regulations as provided for in government extant laws governing public expenditure in Nigeria .
The members who also asked the NDDC’s IMC to appear before the House to explain the plan of the Interim management aimed at addressing the effects of the present critical economic challenges in the country on the Niger Delta region amidst reports of inappropriate expenditure by the IMC, said it has become necessary to probe the NDDC’s IMC. The invitation followed the unanimous adoption of a motion raised by Rep. Peter Akpatason (APC-Edo) at plenary on Tuesday.
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While moving the motion , Akpatason said the NDDC was established by Act No. 6 of 2000 as an interventionist agency with an unambiguous mandate which entails, among other things that the NDDC should focus on the economic, environmental and infrastructural development of the Niger Delta with the ultimate aim of improving the socio-economic lives of the peoples of the Niger Delta region.
The lawmaker who cited Section 7 1(b) of the NDDC Act to buttress his position stated that the mandate of the commission entails conceiving , planning and implementing projects and programmes in line with designated modalities and regulations. Akpatason warned that with frightening reports of declining federally generated revenue occasioned by the serious impact of COVID-19 , there was need for all patriots and citizens to begin to examine more closely the alleged illicit payments and contracts currently on-going in NDDC.
He said: “The House Committee on NDDC is inundated with petitions from contractors, stakeholders and public interest groups regarding alleged personnel layoffs and replacement with unqualified and inexperienced persons to man strategic offices in the commission, thereby hampering efficiency and productivity.
“The plethora of petitions and write-ups,, both in the main stream and social media outlets against the current interim management of the commission’s imprudent spending of scarce financial resources. I am alarmed by claims that the commission had spent over N40 billion in a space of two months without corresponding effect on the region.
“70 per cent of the said amount were allegedly made on emergency projects and completion of commission’s headquarters building, without due regard to fiscal governance as encapsulated in the Fiscal Responsibility Act, 2007 and other extant Financial Regulations.”
Akpatason, who represents Edo State revealed that at the early stage of COVID-19, a contract was allegedly awarded by the IMC for the supply of Hilux vehicles and medical consumables to the tune of N4.8bn. This contract, according to him was done in clear breach of sections 19, 25, 41 and 42 of the Public Procurement Act, 2007. The lawmaker said the purported unauthorized contracts and payments if not halted in good time, the restiveness in the Niger Delta arising from on-going complaints against the IMC may become unmanageable.
Akpatason who noted that the forensic audit genuinely envisaged, and authorized with noble intention by President Muhammdu Buhari for which the IMC was put in place has become “a conduit for forensic looting.’’
The House consequently mandated its committee on NDDC to investigate all issues relating to misapplication and misappropriation of public funds by the IMC and report to the general house. The lawmakers who requested its committee on NDDC to carry out a thorough investigation into all procurement and financial transactions of the commission for the fiscal year in order to establish compliance or breach of the Law also mandated its committee to probe the Commission’s adherence to, or breach of the Act setting up the NDDC.
This include alleged cases of layoff, reported inappropriate expenditure, alleged deployment of management officers, and questionable contracts allegations including alleged inappropriate payments to Rodnab, the company handling the building of the Commission’s headquarter’s project.
Recall that Rodnab, a construction company purportedly close to Akpabio has been in the news for allegedly profiting from alleged ethical breach of public expenditure regulations and law. This development has triggered series of petitions alleging underhand payment of an upfront N16bn to Rodnab, the total value of the project not withstanding the fact that job in question is still very far from completion.
Insiders at NDDC reveal that the narratives surrounding Rodnab represent a curious and intriguing story of a project initially awarded by OMPADEC to Marshland Nig Ltd at the cost of about N5bn but was reportedly jacked up to N16bn in most incongruous manner. The action which was reportedly queried by the office of the Auditor-general of the Federation (AGF), was said to have been ignored in clear breach of public sector extant rules.
In the meantime, as the purported crooked payments drama persists, an action that seemingly bear some similarities with the plots, acts, actors in Samuel Backett’s epic play, Waiting For Godot, Rodnab smiled to the banks, allegedly netting home a total of N16bn payments till date(the total contract sum at the expense of the peoples of the Niger Delta.) without completing the job.
Godot, the central character in Becketts’s Waiting for Godot never arrives just as the NDDC building which has been under construction since OMPADEC era hasn’t been completed regardless of the fact that N16bn has been paid to Rodnab which is projected to have done only 5% of the total project threshold.
Angry senior NDDC directors told The New Diplomat that upon resumption of duty at the Ministry of Niger Delta Affairs, Chief Akpabio reportedly visited the Commission’s headquarter’s building site, and directed the then acting Managing director of NDDC to pay the said Rodnab N2.6bn. This was said to be premised on a firm pledge that by March the project would be completed by Rodnab.
A very disappointed senior director at the NDDC who spoke with The New Diplomat lamented thus: “It is very sad that N16bn has been paid to Rodnab without completing the job. If you evaluate the project, he has done only 5% threshold because the previous contractor took the project to 65% completion and as at today, the project is only 70% completion. So this implies Rodnab has done only 5% and yet has been paid N16bn till date.”
Another senior director who wishes to remain anonymous as a civil servant further added; “Rodnab has done only 5% threshold so far and yet he has collected N16 bn. The original contractor, Marshland Nigeria Ltd had delivered the project up to 65% with N4bn payment before Rodnab was unlawfully brought on board by one-time MD because he was running for election and he needed to please someone like Akpabio in his home state of Akwa Ibom. That was how Rodnab came into the scene. For fear that Marshland would go to court to raise the illegality of the move, Marshland Nig Ltd was paid N500m for doing nothing just to walk away. That was when the full drama of Waiting for Godot started…
“And when the NDDC management re-evaluated the job, they pegged it at N6bn at the time of this former MD, recommending that more serious companies like Julius Berger be brought on board to undertake this critical project. But the MD at the time, because he apparently needed the political support of Akpabio as he was running election, he allegedly jettisoned the recommendations and moved in favour of Rodnab, which was then paid about N10bn subsequently. That was before Akpabio came into office as Minister.
“When Akpabio came on board as Minister, he hurriedly visited the NDDC building, after which Rodnab was paid N2.6bn in addition to another N1bn with a promise to complete the job in March. And again, when the IMC came on board, Rodnab was said to have been paid another N3bn in March bringing the total receipts to N16bn.
“The Auditor General’s Office even raised some issues about the payments, citing financial infractions. The question now is: “Who pays a contractor N16bn funds belonging the peoples of the Niger Delta, from where the Oil wealth of this nation is derived, and yet the job has not been completed? These are some of the issues the House of Reps want to probe. We as the directors are all going to the House of Reps to submit documents and testify to these fraudulent deals on-going. We owe the people of the Niger Delta this truth. Patriotism says it is an action we must carry out…”
The New Diplomat sought to reach the IMC for comments but no one was willing to comment on these allegations. Mum was the word. Similarly, a call put across to the Minister of Niger Delta Affairs, Chief Akpabio by The New Diplomat’s Head of business and data tracking desk was not answered as at the time of filing this report. But it would be recalled that Akpabio has consistently denied any involvement in the alleged sharp practices, asking the IMC to address the allegations raised against it by petitioners. The Minister had also reportedly told the IMC to address all the issues mentioned in the series of petitions including cases of alleged fraudulent contracts.
