Kwara govt fails to deliver N138m project after paying contractor – ENETSUD

Date: 2022-08-05

FINDINGS by Elites Network for Sustainable Development (ENETSUD), a civil society organisation, has shown that the Kwara State Government, through the Ministry of Energy, failed to ensure delivery of a contract 14 months after the contractor was paid.

The contract, for supply of transformers, was signed on June 2, 2021 and was supposed to be delivered three weeks after the signing ceremony.

A statement released on Thursday by Saeed Tijjani, Press Secretary, ENETSUD, said the state governor AbdulRahman AbdulRazaq approved the sum of N197,512,500 on May 11, 2021 as the contract sum.

The contract, which was awarded on May 24, 2021, was for the supply of 35 Beltransfo transformers of various capacities through Direct Purchase, which was awarded to Best International Energy Services Ltd.

According to ENETSUD, the contractor accepted the contract offer on May 26, 2021, and was later received by the Ministry of Energy on June 2, 2021.

Further investigation by ENETSUD revealed that the contractor was paid a sum of N138, 258,750 which represents 70 per cent advance on May 28, 2021.

Parts of the statement read, “However, a payment voucher dated 28th May, 2021 was used to pay the contractor a total sum of N138,258,750, which represents 70% advance payment (mobilization fee) to the contractor.

“ENETSUD noted that the letter authorizing the release of the payment to the contractor with ref. no. F.113/S.62/T/442 (dated 20th May, 2021) was written even before the contract was awarded to the contractor (dated 24th May, 2021) and also before the Ministry received the acceptance of offer from the contractor (2nd June, 2021), suggesting a lack of due process and a possible procurement malpractice contrary to the state Procurement Law.”

However, the contractor was expected to deliver the transformers within three weeks from the date the agreement was signed.

The contract agreement was signed on June 2, 2021 by the Ministry and the contractor.

But 14 months later, the contract details haven’t yet been delivered, putting citizens at a loss and the government keep looking away.

According to ENETSUD, “The state Commissioner for Energy admitted that the contractor hasn’t delivered the project as of May 23, 2022.

“The commissioner also gave an assurance that the transformers would be delivered on or before May 31, 2022.”

“ENETSUD, having waited beyond the date provided by the Commissioner, is left with no option than to report that the transformer project awarded by Kwara State Government (KWSG) to Best International Energy Services Ltd is yet to be delivered after 14 months.

“The KWSG’s failure to follow and monitor the timely delivery of project contracts awarded with taxpayers’ money is of serious concern to ENETSUD, as we are known to be following Kwara money to ensure that public money works for the people of Kwara state,” the statement added.

Source

 


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