Leadership (Abuja)
Emmanuel Iffer
2 November 2009
Abuja — A major row is brewing in the Fedral Ministry of Transport over the award of the N3 billion contract for the construction of the inland transport and other ancillary facilities at Boro, Niger State.
Documents available to LEADERSHIP shows that the pre-qualified contractor shortlisted for the job by the Bureau of Public Procurement (BPP) was dropped by the Ministry for a Chinese firm which quoted higher figures for the job
Already pre-qualified contractor HOFFMANN and DANJA (INTERNATIONAL) LTD, through its lawyers; Messrs Refuge Chambers has petitioned the House of Representative's Committee on Bureau of Public Procurement (BPP), alleging among other things that the National Inland Waterways Authority (NIWA) connived with the Chinese firm; Messrs China Gezhouba Group Corporation Global Projects Limited (CGGC) to circumvent due process and in the process inflate the cost of contract for the project.
In letter signed by Friday Omakoji Abu, a senior partner in the chambers, the company expressed shock that none of the three top bidders, which included Hoffmann and Danja that led after the rigorous process, were considered, or even invited by the ministry and NIWA.The letter read in part: "From the foregoing, it is obvious to us that some foul play is taking place or about to take place within the management of NIWA and the federal ministry of transport".
Among other demands, the letter also called for the prosecution of those behind the inflation of the original contract sum as submitted by C.G.G.C, which it believe is an attempt to defraud the federal government and by extension defraud the Nigeria people.
"We finally demand that one among the three (3) bidders on page 8 of the BPP review report be awarded the contract in line with the principle of due process"..
However, investigations revealed that following the Federal Executive Council (FEC) approval for award of contract for the dredging of River Niger, from Warri in Delta state to Baro in Niger state on May 23, 2009, and subsequent advertisements, and completion of the due process, the ministry through a letter dated August 10, with reference number T.4316/S.III/CVol.I/42, requested for a Due Process Certificate of "No Objection" in favour of CGGC from BPP.
However, BPP in its review report number; BPP/DPR/MBO/REPORT/2009, observed and rejected the recommendations of NIWA on the ground that the Chinese company had during the process, both in the technical and financial bid, came 8th as against Hoffmann and Danja that emerged first.
The BPP had also observed that the project consultant Haskoning Engineering Consultants Nig Limited had estimated the contract to cost N2, 783, 837,092.36. In that case it frowned at the in-house estimate of N3, 603,667,980.91 which was alleged to have been jointly arrived at by FMT/NIWA.
Continuing, BPP argued that the NIWA in-house experts never doubted the capabilities of all the bidders including that of Hoffmann and Danja whose figures were N2, 518, 00,137.82. This, it had also maintained, compares favourably with those other two firms that were involved in the River Niger dredging.In conclusion therefore, BPP overruled saying that: "Due process 'No Objection Certificate for the award of contract for the construction of Inland Rivers Port and Ancillary Facilities at Baro Niger state, cannot be granted to CGGC, in the sum of N356,449,248.00.
It instead ordered that 'No objection' Certificate can be issued to prequalified bidder; Hoffmann and Danja in the sum of N2, 518,008,137.82.
Following the report, BPP Director General, Engr Emeka Ezeh, in a letter of September 3, 2009, with reference number; . BPP/RPT/09/Vol.I/192 to the Minister of Transport conveyed the bureau's insistence that Hoffmann and Danja, having come first in the selection process remains the preferred choice for the job.Nonetheless, sources disclosed that it became curious that rather than awarding the contract to Hoffmann and Danja, as directed in the BPP report, the Ministry of transport in a letter of October 26, 2009, signed by its permanent secretary, Femi Olayisade, invited the BPP DG and some top officials of the ministry and special Assistant to the president on project monitoring to a meeting on the matter.
The content of the letter however indicated that the meeting was a directive from the president, yet sources at the ministry and BPP, doubted its authenticity, wondering if the President ever issued such a directive.
According to a source close to BPP, who confided in our correspondent, "this was against the normal practice of the BPP and against the procurement act as passed in 2007".
Surprisingly, the following day a certificate of no objection was issued by the BPP in favour of CGGC for the sum of N3, 563,449,248.00, and same was forwarded to the transport ministry. The sudden about turn has elicited curiosity and questions.
Especially against the backdrop that the tender documents from CGGC, showed that the actual bid by the company may have been inflated, as its original bid was N2,999,915,000, as against the N356,449,248.00.
Sources informed Leadership correspondent, that the ripples have caused some stakeholders in and out of the ministry to start fingering the Transport minister Ibrahim Bio and the Managing director of NIWA, Ahmed Aminu Yar'Adua, as allegedly being behind the jerking of the contract sum, as well as the attempt to shut out the other bidders. Pointedly, they are now alleging that the contradiction may be a reflection of an understanding with the Chinese company.
Meanwhile, attempts to get the Minister, the Managing Director of NIWA or any of their senior management personnel to comment on the matter verbally proved abortive, but a latter SMS from the Minister, said: "You may wish to get your clarification from me or any staff tomorrow in the office".
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