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LogoDaily Independent Online.         * Wednesday, June 16, 2004.

N4b scam foiled in NITEL

By Sanya Adejokun,

Senior Correspondent, Abuja

Application of due process has saved some $32 million (N4.48 billion) from an over-valued contract awarded by the board of the Nigerian Telecommunications Limited (NITEL).

Presidential Senior Special Assistant on Due Process and Head of Budget Monitoring and Price Intelligence Unit, Oby Ezekwesili, disclosed this on Tuesday in Abuja.

She said at the International Conference on Infrastructure Development organised by the Nigerian Economic Summit Group that 13 foreign firms bid for the contract from which six were selected for the main bidding process.

According to her, NITEL board had avoided certification of the contract by the Due Process Unit by routing the contract directly to the Federal Executive Council (FEC).

Her words: “NITEL management and board forwarded the contract agreement directly to the Federal Executive Council, without going through the Due Process Unit. The officials of the Ministry of Communications stated that they could not take it to the Due Process Unit because the contract was of national emergency and urgently required”.

When President Olusegun Obasanjo requested for the due process certificate which did not accompany the papers, NITEL officials claimed that the contract was of national emergency. The President told them that he would approve it but that it would be subject to the Due Process verification and certification.

Ezekwesili said her team discovered that certain aspects of the contract were against the rules of the unit.

She added: “When the contract was brought to us, we found out that we couldn’t put pen to it as doing so might destroy what we believe in. We therefore directed that the contract be cancelled and a more transparent process be started afresh.

“The ministry officials noted that it couldn’t be cancelled as the contract was of national emergency. They took it again back to the President, who also aligned with Due Process observation”.

Fresh bidding was conducted for the contract and the cost was slashed by $32 million.

 

 

 

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