The Federal Government has warned heads of government-owned agencies, corporations, councils, authorities and commissions against inflated contract awards and procurement violations, threatening sanctions for breaches of procurement regulations.
The government expressed concern over contracts awarded above approved price benchmarks, arrangements that restrict competition by granting contractors exclusive access, and practices that undermine regulatory oversight.
The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of federal government-owned enterprises and other public institutions to strictly comply with the Public Procurement Act, 2007, or face penalties.
The circular was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, as well as other senior public officials, according The PUNCH.
Akume raised concerns over continued breaches of procurement regulations by government-owned enterprises and corporations, despite amendments to the law through the Finance Act, 2020.
He said the violations had led to inflated contract costs, limited competition and weak regulatory oversight, stressing that the government would no longer tolerate such practices.
The SGF consequently directed all government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure strict compliance with the Public Procurement Act.
He also directed heads of the affected institutions, in their capacity as accounting officers, to seek guidance from the Bureau of Public Procurement, warning that those who continued to breach procurement regulations would face sanctions.
The circular places direct responsibility for compliance on accounting officers and mandates that its contents be circulated immediately among them for strict implementation.
The circular stated, “It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007.”
The SGF said the violations had resulted in inflated contract costs, limited competition and weak regulatory oversight in public procurement.
“This practice has resulted in contract sums that are above established pricing benchmarks, captive markets for exclusive contractors, significant departure from approved guidelines and absence of critical regulatory oversight, amongst other lapses,” the circular added.
Akume warned that the government would no longer condone such breaches, stressing that institutions found violating procurement regulations would face sanctions.
“This non-compliance is unacceptable and will no longer be tolerated,” he said.
The SGF consequently directed all federal government-owned enterprises, corporations, councils, authorities and commissions funded with public money to ensure strict compliance with the Public Procurement Act in their contract awards and procurement activities.
The circular stated, “Therefore, to ensure that the core principles of transparency, accountability and value for money are achieved, all Federal Government Owned Enterprises, Corporations, Councils, Authorities and Commissions are accordingly directed to ensure that their procurements are implemented in line with the Public Procurement Act, 2007, provided they utilise public funds.”
The directive places responsibility for compliance on the heads of the affected institutions, in their capacity as accounting officers, warning that they would be held accountable for any further contract awards that violate the law.
Akume also directed the accounting officers to consult the Bureau of Public Procurement for guidance on implementing the procurement regulations.
Those copied on the circular included the Chief of Staff to the President, Deputy Chief of Staff, Principal Secretary to the President, Secretary to the Government of the Federation, Head of the Civil Service of the Federation, ministers and ministers of state.
Others were the National Security Adviser, Economic Adviser to the President, special advisers and senior special assistants, Chief of Defence Staff, service chiefs, Inspector-General of Police and Governor of the Central Bank of Nigeria.
The circular was also sent to the chairmen of the Federal Civil Service Commission, Police Service Commission, Code of Conduct Bureau, Code of Conduct Tribunal, Federal Character Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Federal Inland Revenue Service and Independent National Electoral Commission.
Other recipients included the chairmen of the National Population Commission, Independent Corrupt Practices and Other Related Offences Commission, Economic and Financial Crimes Commission and National Drug Law Enforcement Agency.
