FG Threatens Sanctions Against Agencies Over Inflated Contracts, Procurement Violations

The Federal Government has warned heads of government-owned agencies, corporations, councils, authorities and commissions against violating public procurement regulations, threatening sanctions for institutions that award contracts outside the provisions of the law.

 

The government expressed concern over contract awards exceeding approved price benchmarks, restricted competition through exclusive arrangements with contractors and inadequate regulatory oversight.

 

The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of federal government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, as amended, or face penalties.

 

The circular, obtained by our correspondent in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, among other senior public officials.

 

Akume said several government-owned enterprises and corporations continued to award contracts in violation of the procurement law despite its amendment through the Finance Act, 2020.

 

He noted that the practice had resulted in inflated contract sums, restricted competition and inadequate regulatory oversight, warning that the government would no longer tolerate such breaches.

 

“It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007,” the circular stated.

 

According to the SGF, the violations had contributed to contract prices exceeding established benchmarks, exclusive arrangements that restricted competition and departures from approved procurement guidelines.

 

“This practice has resulted in contract sums that are above established pricing benchmarks, captive markets for exclusive contractors, significant departure from approved guidelines and absence of critical regulatory oversight, amongst other lapses,” the circular added.

 

Akume described the non-compliance as unacceptable and warned that institutions that continued to disregard procurement regulations would face consequences.

 

“This non-compliance is unacceptable and will no longer be tolerated,” he said.

 

Consequently, the SGF directed all federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Public Procurement Act.

 

The circular stated, “Therefore, to ensure that the core principles of transparency, accountability and value for money are achieved, all Federal Government Owned Enterprises, Corporations, Councils, Authorities and Commissions are accordingly directed to ensure that their procurements are implemented in line with the Public Procurement Act, 2007, provided they utilise public funds.”

 

The directive places responsibility for compliance on the heads of the affected institutions, who also serve as accounting officers.

 

Akume specifically instructed them to liaise with the Bureau of Public Procurement for guidance on implementing the regulations, warning that any accounting officer who continued to award contracts in violation of the law would be sanctioned.

 

“The Heads of Enterprises, Corporations, Councils, Authorities and Commissions, who are also the Accounting Officers, are hereby directed to liaise with the Bureau of Public Procurement for further guidance, as any Accounting Officer who contravenes this directive and continues to award contracts without recourse to the provisions of the Public Procurement Act, 2007, shall be sanctioned accordingly,” the circular stated.

 

He further directed that the circular be circulated among all accounting officers for immediate implementation and strict compliance.

 

Among the officials copied on the circular were the Chief of Staff to the President, Deputy Chief of Staff to the President, Principal Secretary to the President, Head of the Civil Service of the Federation and all ministers and ministers of state.

 

Others included the National Security Adviser, Economic Adviser to the President, special advisers and senior special assistants, Chief of Defence Staff, service chiefs, Inspector-General of Police and Governor of the Central Bank of Nigeria.

 

The chairmen of the Federal Civil Service Commission, Police Service Commission, Code of Conduct Bureau, Code of Conduct Tribunal, Federal Character Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Federal Inland Revenue Service and Independent National Electoral Commission were also listed.

 

The circular further included the chairmen of the National Population Commission, Independent Corrupt Practices and Other Related Offences Commission, Economic and Financial Crimes Commission and National Drug Law Enforcement Agency.

 

Other recipients were permanent secretaries, heads of extra-ministerial departments, the Clerk of the National Assembly, Chief Registrar of the Supreme Court, Accountant-General of the Federation, Auditor-General for the Federation, as well as directors-general and chief executives of government agencies, parastatals and government-owned companies.