Contract Inflation, Unremitted Funds: ₦12.7 Million Contract Irregularities Uncovered at Two Abuja Federal Colleges

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A trail of disputed contract payments running into millions of naira has raised questions over financial controls at two federal unity colleges in Abuja, with over ₦12.7 million in questionable expenditure uncovered.

At the Federal Government Girls’ College (FGGC), Bwari, it was discovered that ₦3,748,500.03 as excess payment was made for a contract for the expansion of a security post and construction of modern toilets, under the leadership of Mrs. Stella Maris Ufuoma Omu.

The contractor’s original bid for the project was ₦4,742,877.80, which was considered by the College’s Tenders Board and forwarded to the Federal Ministry of Education for ratification.

The Ministry subsequently approved a contract sum of ₦8,491,377.83 and paid the amount through a voucher dated March 4, 2019.

The payment was ₦3,748,500.03 above the amount initially recommended by the college’s Tenders Board. There was also no evidence of a Certificate of No Objection from the Bureau of Public Procurement (BPP) authorising the variation that resulted in the higher contract sum.

The expenditure was considered capable of exposing government funds to loss and creating room for contract inflation.

Responding to the finding, the College said its Tenders Board had actually reviewed the contract sum downward to ₦4,558,106.14. It said this was contained in a memorandum from the Principal to the Federal Ministry of Education headquarters before the Ministerial Tenders Board subsequently reviewed the figure upward to ₦8,491,377.83.

This was in violation of Establishment Circulars SGF/OP/I/S.3/VIII/124 of August 25, 2009, and SGF/OP/I/S.3/X/372 of July 25, 2013, as well as Financial Regulation 2009, paragraph 415.

At the Federal Government Boys’ College (FGBC), Garki, ₦8,978,136.19 was found to be included in two contracts as preliminary, administrative and contingency provisions.

The amount was incorporated into the Bills of Quantities and paid to the contractors, but there was no evidence that approval had been obtained for its utilisation or that the expenditure had been retired.

The absence of documentation supporting the use of the ₦8.9 million raised concerns over the possible diversion of public funds and payments for jobs not executed.

In its response, the College referred to an Appendix 2, which it said contained details of the utilisation of the preliminary, administrative and contingency expenses. These actions were in contrast to Financial Regulations 2009, paragraphs 412, 415 and 603(i), in relation to the expenditure.

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