The Minister of Works, David Umahi, has denied claims that the project leading to the disbursement of N9.3 billion to a Microfinance Bank by the Ministry of Works was awarded when he took over at the Ministry.
The Minister was reacting to information by Tracka, BudgIT’s service delivery promotion platform, which exposed how the Federal Ministry of Works paid N9.3 billion to FIMS Microfinance Bank Ltd in violation of the 2007 procurement law.
Clarifying the position of things concerning the said contract and eventual payment, Senator Umahi said he was still in the Senate when the first payment was made in June 2023, and further explained that the Ministry acted per the law as the payment was made for service delivered by contractors and not for the contract awarded to the bank itself.
In defence of his position, the Minister said; “There are issues with the report because up to the 20th of August, I was in the Senate. When a contractor has done his or her work, the money becomes his money, he can say, pay it to this bank or another.
“So, they are being mischievous. If they are asking whether the job has been done, that is reasonable and a right to provide an answer but they do not have the right to say where a contractor will say his money will be paid. Whether it is paid into a microfinance bank or not, without prejudice that I don’t have the facts about the jobs, they have no right to say it is paid into a microfinance bank.”
According to the former Ebonyi State Governor, who described the information as a distraction, the allegation is the work of bad contractors trying to fight back, adding; “The jobs were never done by me, payments were not done by me, and even if it was me if the jobs were done and the certificate generated; deployed to the platform and it was appropriated and money was released against the project, then they have no right to question where it was paid.”
“In all the states. It is our policy that the State governors, through their appointed officials, must mark off any project, especially the emergency projects. When the contractor has completed a job, no matter how big it is.
“My advice for the governor is to come to the site and look at it before it gets to our office for payment, where this procedure is not done, I will not sign any generated certificate. So, we have invited the public to also be a part of the monitoring”.
In raising the red flag about the release of the funds for 62 projects made between June and December 2023, Tracka stated that some of the projects’ funding include “the payment of N1.4 billion in September 2023 for the construction of Yaba-Yangoje Road in the Federal Capital Territory; and the N1.2 billion in October 2023 for the rehabilitation of a 2km road from Oriawo-boroboro-oke-medina School of Science Road in Atiba, Oyo state.
Others are the “N1.2 billion in October 2023 for the rehabilitation of Kosobo-Awe Junction Road in Oyo East LGA in Oyo state; and N1.2 billion between August and November 2023 for the rehabilitation of Ejule-Otukpo road in Benue State to mention a few.”
Tracka’s mission statement and information on its website indicated that FIMS Microfinance Bank Limited was incorporated on December 11, 2009, to conduct microfinance businesses/services with a certificate of incorporation number RC 858800.
Consequently, BudgIT’s Country Director, Gabriel Okeowo, said; “As a financial institution, the award of road construction contracts amongst others to this company is a violation of the Public Procurement Act 2007”.
Okeowo had urged anti-graft agencies to question and probe the payments as well as prosecute the erring officers if found culpable of any financial impropriety
