FG uncovers billions of Naira fraud in Niger Delta ministry contracts under Jonathan

The Federal Government said that it has uncovered some fraudulent activities of some contractors that handled projects in the Niger Delta region between 2009 and 2015.

The period under review was under the administration of Former President Goodluck Jonathan.

The Minister of Niger Delta Affairs, Mr. Usani Uguru, who stated this on Wednesday, revealed that some of the contractors ran away with billions of money paid to them without appearing on the sites of the projects and that some who appeared on the sites, only managed to
implement 12 per cent of the projects they were paid for.

The Minister told State House correspondents in Abuja, that the discoveries were in a report of an
investigation carried out by the ministry on all contracts awarded and projects carried out by the ministry from 2009 to 2015.

He said the report showed that over N423billion had been expended in
the region by the ministry alone. This huge amount, the minister said did not include the sums expended by other intervention agencies.

He said, “From this amount, projects execution rate has been at 12 per cent with an average completion rate of a project standing at five years. The impact rate is eight per cent”.

Uguru further revealed that he got approval to make the report available to relevant government agencies in charge of recovering government assets that were either misappropriated, misused or found
to be idling in some quarters.

He explained that those who deserved sanctions would be punished, while those of them who needed to return to sites would be compelled to do so.

“With this, it means all those who have accessed government resources
for one purpose or another must be compelled to make adequate use of
same , otherwise they will face the recommendation that goes with such
violations.

“That is our position concerning that report and we have received council’s approval for that.

“Sixty per cent cost has been paid out to contractors with 12 per cent completion rate . Sixty per cent of the amount of money
appropriated which is N700 bn , 60 per cent of that constitutes N423bn.

“To find that such money has been spent in that region with the kind of work we see, shows that there is something tangibly and obviously wrong with how procurement had been carried out in the ministry.

“The number of projects awarded was 427 and there is no uniform action by each of the contractors . So, the measure of action to be taken to address the shortfall of our expectations or commitment to
contractual agreements will be the determinant of what will be done.

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“Those that require sanctions will be sanctioned . The sanctions may not be uniform . It will be according to the measure of liabilities hold by each of the contractors.

“Some will be compelled to return to site . Some , of course , should be made to refund money , those who we have seen by their actions displaying criminal intent by collecting money and not appearing at
sites at all.

“The report is not just all about punishing people. There are also those who have performed well and are commended and the report recommended that they should be encouraged to carry on in their
contractual commitments”.

 

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