The Senate Committee on Public Account has queried the Niger Delta Basin Development Authority over a N220 million contracts scandal.
The contracts, which are mainly construction of boreholes and water projects in Bayelsa, Rivers and Delta States, were fully paid for but not properly executed or not executed by the contractors.
The contracts total were about N220 million and awarded on October 18, 2012.
The Senate Panel query hinged on the report of Auditor General of federation, Anthony Ayine, which exposed massive corruption in the Niger Delta Basin Development Authority.
The Managing Director of the Commission, Tonye David-West, who appeared before the Senate Panel ,chaired by Senator Mathew urhoghide, was unable to defend all the queried issued to him by Committee.
The Auditor General Report reads: “N9.2 million being expenditure for unexecuted contract for the construction of 10 No’s Mono hand pump boreholes in Obo-Akpor LGA Rivers state was awarded to a company through letter reference AD/NDBDS/C/20/12/050 and dated 18th October, 2012.
“It was claimed that the job has been completed and payment effected.
“However, audit inspection revealed the boreholes on the sites were in existence even before the contract was awarded.
“The contract construction of Solar power water project at Ekwetortor Delta State was awarded to a company on October 18, 2012 at contract price of N10 million with completion of six and half weeks .
“The total contract sum had been paid but a visit to the site showed that the solar power was not working as the residents confirmed.
“It was further observed that some aspect of the Job in the BEME that were not carried out.
“N3.8 million value of the contract has not been done.
“The contract for the rehabilitation of Otir Ewhu water project was awarded on 18th October, 2013 at the contract price of N40 million.
“Examination of payment vouchers revealed that the sum of N36 million paid into contractor included contingency provision of N3.5m the reason for the inclusion for justification for the utilization of the contingency was provided.
“During inspection, it was observed that some provision of BEME were out as stated.
“The Managing Director has been requested to recover N13 million being valued of work not done and unexplained expenditure.
“The contract for the construction of solar power boreholes in 19 various communities in Bayelsa was awarded to a company on October 18th October, 2012 at contract price of N238 million with completion period of 3 months .
“The BEME for the job had provision for items of measurable nature and items value that have no strengthening and capacity building throughput the duration of the project, providing for riverine transportation cost of upland locations contingencies and so on to the tune of N33 million which was expended without recourse to extant regulations.
“Payment for the contract value had been effected vide 2 PVs. No’s 026 of 11/072013 and 080/of 01/11/2013.
“However a visit to two of the sites (Ebenedebiri and Trofani) showed that the total value of work not done at two locations was N14 million because the project at Trofani was not executed.
“The sum of N14 million paid for work not done and provisional inclusion spent without recourse to the extant regulations, respectively, cannot constitute legitimate change against public funds.
“Therefore, the total sum of N47 million should be refunded.”
The Senate panel also queried the Commission on another N79 million.
According to the Auditor Feneral, all the issued raised were communicated to the Managing Director of NDBDA through Audit inspection report in July 2016.
The Committee therefore sustained all the queries issued by the Office of Auditor General of the Federation.
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