BudgIT Accuses Works Ministry of Procurement Law Violations

• BudgIT accuses the Federal Ministry of Works of breaching the 2007 procurement law by releasing N9.3 billion to FIMS Microfinance Bank
• The watchdog calls on Minister David Umahi to clarify fund disbursements, highlighting concerns about awarding road contracts to a financial institution

BudgIT, a renowned watchdog, has accused the Federal Ministry of Works of breaching the 2007 procurement law. This comes from releasing N9.3 billion funds for 62 projects to FIMS Microfinance Bank Ltd.

The alleged violation, spanning from June to December 2023, was brought to attention through the Govspend platform. The platform tracks government money disbursed to contractors, revealing the financial transaction.

Upon investigation, it was discovered that FIMS Microfinance Bank Ltd. has been a consistent contractor for the ministry since 2018. Various ministries and agencies, including the Ministry of Water Resources and the Federal Road Maintenance Agency (FERMA), have channelled funds to the bank.

BudgIT’s statement calls upon David Umahi, the Minister of Works, to elucidate the rationale behind these fund disbursements. Highlighting concerns about awarding road construction contracts to a financial institution, BudgIT argues that such actions violate the Public Procurement Act of 2007.

Quoting specific sections of the Act, the statement emphasizes bidders’ need for professional and technical qualifications, financial capability, and relevant infrastructure for procurement contracts.

The watchdog urges Minister Umahi to address the repeated violations and infractions within his office, seeking transparency. Additionally, it calls on the Bureau of Public Procurement to scrutinize the transactions and impose appropriate sanctions for any identified breaches.

Gabriel Okeowo, the country director of BudgIT, emphasizes the importance of handling public funds responsibly. He asserts that these funds should be managed with the utmost caution and a sense of responsibility toward Nigeria’s collective interests.

Minister Umahi, through his media aide Orji Uchenna Orji, refutes the allegations. He clarifies that he was in the Senate during the first payment in June. The minister argues that the funds were disbursed for services rendered by contractors, not for contracts awarded directly to the bank.

Umahi dismisses the report’s credibility, asserting that the ministry acted within the confines of the law. He maintains that payments were made based on completed services, dismissing accusations of impropriety as mischievous acts.