11 Oct 2009 |
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The Contract Bazaar By Sonala Olumhense "On September 23, the Federal Executive Council (FEC) did not hold its weekly meeting." Reason: Nigeria's Spectator-Leader, Umaru Yar'Adua, was away in Saudi Arabia seeking the medical care that would keep him alive. The Ministers took advantage of the opportunity and got out of town. The Minister for Information explained to the press: "The Eid El-Fitr Sallah celebrations prevented cabinet members from preparing memoranda for the meeting, as most of them travelled out of town without having to process the memos through the cabinet office headed by the Secretary to the Government of the Federation. Remember that Monday and Tuesday were public holidays, and we had the last FEC meeting on Wednesday. So, we usually use Thursdays, Fridays, Mondays and Tuesdays to prepare for Wednesday meetings. These meetings don't just come, we prepare for them, we submit memos and go through the memos before we come for the meetings. So, there was no time to prepare for this meeting." That is why Nigeria's highest policy-making body took a week off from its work, which is basically to award contracts. That is what the Council is best-known for: it awards contracts. I suspect that on September 23, either there were no contract papers ready, or the contracts on the table were considered to be bigger than the Vice-President, who was actually at his desk that day. Consider that two weeks later, the casino table would have N170 billion. But let us start from January, and take a look at a few meetings. On January 28, the Council decided that contract awards in the year's budget must end by September, as part of the effort by Yar'Adua to enhance budget implementation. Where funds were not stolen, they were being returned to the government, an embarrassment for a government that likes to complain it lacks funds. Yar'Adua himself, of course, did not attend that particular meeting. The following week, on February 5, the Council approved, among others, $50 million in additional financing for polio eradication projects in Nigeria. The funds came from the International Development Association. One week later, on February 12, it approved contracts worth N2.4 billion, allegedly for the construction of 37 emergency communications centres, one in each state, and the FCT. On April 8, the FEC awarded contracts worth N41.5bn for the procurement of fertilizers; it said it would be available to Nigerian farmers at a 25 per cent subsidy. At that particular meeting, the Council approved a bill instituting the confiscation of illegitimate assets from individuals or corporate bodies. On June 3, the Council gave contracts of N25.3 billion for electricity power projects nationwide. It said that contract included Yar'Adua's "anticipatory approval" of N15.4 billion, to be spent from outside the current budget, to fund new critical transmission projects. The following week, on June 11, the Council gave a N74billion contract for the dualisation of the East-West highway. On June 18, the FEC approved N114 billion, allegedly for 25 C25 EMPD diesel-powered locomotives for Nigeria Railways Corporation (NRC). The press said that contracts were also given at that meeting for unspecified agriculture and power projects. The following week, on June 24, the life of the Council seemed to have flashed before its very eyes. It issued no contracts. In fact, it said it was suspending the approval of new contracts to its Ministries, Departments and Agencies until all previously-awarded contracts had been audited. That determination lasted less than two weeks. On July 8, the Council was back in the contract business, awarding airport fire-fighting contracts of N5.2 billion. It also gave Foreign Minister Ojo Maduekwe a reason to chuckle, as contracts were also given for furnishing of the new offices of the Ministry of Foreign Affairs. On August 5, the Council put N83 billion on the table "for the execution of various projects." About N1.66 million of the heap, said Minister of State for Information and Communication, Ikra Bilbis, was to cover freight handling charges, customs duty, and taxes for the 25 C25-EMPD Railway Corporation diesel locomotives. Apparently, a contractor was upset the FEC thought he would pay those charges from the loot of June 18; otherwise, it is difficult to see why the contract was first given, and another meeting of the FEC required to add on the taxes and fees. On August 30, the Council approved contracts of N348 billion to boost power generation, distribution and transmission. On September 2, it disbursed contracts on roads, aviation and "others" worth N29.5billion. Those stranded on the Benin-Sagamu expressway at this minute, be comforted: the FEC added N16.67 billion to its investment on its reconstruction, which is now up to N24.27billion. The following week, on September 9, the FEC announced contracts for the clearance of wrecks from Lagos channels; further power "infrastructures," purchase of armored helicopters and implementation of global communication network project. On the table was a meager N3.4billion. But yes, it gave another contract of N1.17 billion for the purchase of a 100-tonne telescopic railway crane for the Railway Corporation. As you would recall, this was the period where our Spectator-Leader headed East, while his colleagues were headed West to put heads together with other world leaders. But October 8, his FEC was back, following his return from observing the opening of university by responsible Saudi authorities, disbursing a bewildering N170 billion, allegedly for the ministries of Aviation, Health, Petroleum, Transport and Power. In other words, not only did contract awards not stop in September, contrary to the government's decision last January, it rose to spectacular heights last week. That performance confirmed the government's reputation as short on principle and lacking in character. Recall that on June 24, government also suspended the approval of new contracts, a resolution it breached within days without issuing a report about its review of previous contracts. If anything, the entire system seems to revolve around all manners of curious contracts, parallel contracts, overlapping contracts, and augmented contracts. There seems to be neither a systematic, rigorous implementation mechanism in place, nor an honest review system. Furthermore, I think it is sad that a serious president would be hanging around while toothpick and matchbox contracts are being discussed. That is not a cabinet; that is a buka. When does the government review its work and cross-check its contract-implementation scheme. In preparing this story, I reviewed hundreds of contracts; some of them have only weeks and months of implementation. Not once did I read of any continuations beyond augmentation and seedy re-contracting. In any event, when does the government discuss true governance, such as policies, their implementation, and their evaluation? When does the gang get around to issues of life and limb, the law and the economy? Since April, for instance, what has been confiscated from anyone as a result of the decision of the government about assets acquired by questionable means? It takes more than contract memos and announcements once a week to make a government.
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