Abuja — The management of the National Hospital Abuja has explained the disparities in the hospital's payment of the15 per cent mandatory mobilisation fee to contractors, arguing that the decision was to ensure that monies voted for such contracts are accessed before the end of the year.

One of the contracts generating disquiet at the National Hospital is the one awarded to Messrs Damaco Best Properties Limited for the construction of Kidney/Cardiovascular ward on 18th August 2009 for the sum of N23,908,500.00 of which the15 per cent Mobilization fee approved by the federal government as a policy ought to have been N8.7Million, but which the hospital management paid N12million, an excess of about N3million against the policy .

Another was the contract for the construction of pediatric ward at the fixed contract sum of N84, 676,641.39. The contract was to last for a period of eight months only. Again, management of National Hospital, on the advice of its consultants, paid the contractors N21, 693,052.50 , instead of N12,701,496,20 approved by the federal government.

The contract was awarded on July 20th 2009 and signed by J.Odiba, Director Administration of the hospital.This contract was awarded to one Dumaco best Properties to be supervised by Bayom and Associates, consultants to the National Hospital.

Also paid in excess was the contract awarded to Kasram Engineering Nigeria Limited for the construction of Kidney Cardiovascular Ward at a fixed contract sum of 92,269.151.45. The contract, according to the letter of award signed by Director Administration of the Hospital, J. Odiba and dated 27th July, 2009,

read in part, "You will be supervised by our consultants, Ms Bayom and Associates who shall recommend any valuation certificate for job executed for approval and for payment in liaison with our Director Maintenance.

"Payment of 15 per cent mobilisation fee upon submission of unconditional bank guarantee, you are required to acknowledge your acceptance of this offer in writing and to perfect a formal contract agreement with the National Hospital Abuja within two weeks from the date of this letter. Failure to perfect this agreement within the specified period may lead to withdrawal of this award".

However, instead of the 15 per cent of the contract sum which amounts to only N13,840,372.71, the management of National Hospital paid the sum of N23,908'500.00.

It was the same in the contract for the construction of the female surgical ward where the hospital paid N27.4Million to Messrs Nice Associates Nigeria Limited instead of N20.6Million.

Another was for the construction of a male surgical ward awarded to Zubik Integrated Ventures Limited where instead of N15.2Million mobilisation fee, the management of National Hospital advanced a payment of N25.5Million.

It is also important to state that one of the contracts is the construction of the VIP guest house allegedly awarded to one Bond Organization Nigeria Limited for the sum of N44, 086,742.70 commencing 1st December where the hospital management has already made payments to the tune of N47, 542,177.50 with additional work of N4, 481,182.00k.

Speaking with LEADERSHIP WEEKEND in defence of the hospital's action, Chief Medical Director of the National Hospital Abuja, Dr. Segun Ajuwon, said the decision to pay above the 15 per cent stipulated by the government was for two basic reasons, one because of valuation certificates raised at various stages of work as work progresses and secondly in view of federal government policy of returning all unspent funds to government coffers by December 31 of every fiscal year.

He told LEADERSHIP WEEKEND that the 15 per cent mobilisation has to guarantee that the contractor will not abandon the site; therefore public funds must be protected.

According to him, "As a journalist, if you say 15 per cent is allowed, I ask why not 20 per cent, why not 30 per cent, why not 10 per cent and I expect you to tell me what the Public Procurement Act says and if it says 15 per cent, it should not just be 15 per cent that you throw away and the contractor will run away.

"That 15 per cent has to be secured, they must still bring advance payment guarantee from a recognised bank, so that they can be mobilised to the site, so that is why 15 per cent is not enough. The public Procurement Act also said that as the project progresses you raise valuation certificate. When they are now mobilised at the work, you will get your own technical people to rate the work they did and raise a certificate. So, if somebody comes to site and it is not just clearing, he is bringing in materials, it is then valued either by your consultants or by the technical people supervising the contract.

He continued, "When that is done, certificate is raised and payment is also made based on such valuation certificate, so if you talk about building projects and you say the total amount is hundred per cent and by the time somebody finishes the block work which is just the foundation and maybe put lintely the job has gone above 30 per cent and once you start putting the roofing materials that will be more than 50 per cent, then the electrical and mechanical works , plumbing work inside and anything that you want to put, then you are going to about 70 to 80 percent , by the time you are talking about painting and electrical fittings , you are already talking about completion. So when you say pay 15 per cent, that is exactly what they will get even without doing nothing so that they can come to site." That is why they call it mobilisation, it is public funds and we cannot pay it like that because there is no guarantee that the man will not take it and run away , he still has to bring advance payment guarantee from a recognised bank. Insurance companies used to give such bonds before but now it is from banks.

Dr. Ajuwon also stressed that, "The moment you see it and the contract starts, you cannot wait until the contract is finished because prices of materials go up at any time, therefore you can encourage your contractor to bring the materials to the site, which can be valued, with certificates raised and monies paid as they work. Now, if you talk about National Hospital and our projects I can proudly tell you to go round and you will see that we have gone beyond 60 per cent generally, because some of the projects have been roofed, some are being roofed and the final work has been done in most.

Some are still doing block work, so we have not paid everybody the same per cent , but as each of the contractors work, they are being paid. Again, we have less than six weeks to end the year and if you don't finish before December 31, you just have to return the money. So, we called the contractors for a meeting more than once and we told them that we have their money in our account with the Central Bank, and so encourage them to please work day and night, and since we have our consultants and engineers on site, for whatever work do, our consultants will raise valuation certificate and we pay. That is the position and for anybody to say we have paid more than what we should pay is a general statement, that is why people should come and find out.