Ogun govt breached Procurement Act in awarding of contracts worth millions to non-existent ‘companies’ 

Though the global 2020 pandemic disrupted economic activities and partly restricted movement across Nigeria, it could not stop state governments like Ogun from dealing in suspicious contracting projects. 

While the state was on lockdown, Ogun State Governor, Dapo Abiodun-led administration violated the procurement act in millions of naira contracts awarded to ghost companies under the guise of purchasing equipment – many unspecified – for administrative use. 

For instance, in December 2020, some ‘companies’ luckily secured 5 contracts from the state government. 

The contracts awarded were worth the sum of N2,746,000. Some of these contracts were awarded twice to the same contractor.

‘Rashy Electrical/Electronics & Wolex Wood & Iron Works’, ‘Wolex Wood & Iron Works’, ‘Wolex Wood & Iron Works’, and ‘Wolex, Fejois brand, *Sylvie E. Okeke’,   etc were named as the contractors for the purchase of office equipment for commissioner and Odeda zonal offices, goods and office equipment and furniture.

Twentyten Daily review of the Ogun State Procurement portal reveals that none of the companies registered with the CAC. 

This contradicts the Public Procurement Law, 2014 which aims to promote accountability in government spending. 

The Law notes that the government should procure “The prcuring entity may receive a bidder to provide documentary evidence or other information it considers necessary as proof that the bidder is qualified in accordance with this Law…”

Part IV (1)(d) of the Procurement Act notes that the government should procure “in a manner which is transparent, timely, equitable for ensuring accountability and conformity with this Act.”

Multiple  contracts for nonexistent ‘companies’ 
Also, another nonexistent ‘company’ by the name Kunlex Electrical Electronics received multiple contracts totalling six for the purchase of office equipment and furniture and goods.

No information on the company of CAC, but the government deems it qualifies to be awarded contracts worth three million, five hundred and eighty-two thousand and four hundred naira (N3,582,400); five of the contracts were awarded in 2020 and one in 2021.

Another ‘company’ that does not have a record on  CAC, Aleji Electrical Electronics was awarded two contracts within three months.

On January 31, 2020, the ‘company’ was awarded a contract sum of five hundred thousand naira (N500,000) to procure one ton of Hisense Air Conditioning and on March 17, it luckily received N490,000 to purchase unspecified office equipment.

This is also according to the contract details on the Ogun portal.

Findings also show that Aleji Electrical Electronics has no online presence. 

More paper companies 
A ‘company’ by the name of 1-ClicksComputers was awarded a contract sum of N755,290 to purchase office equipment in December 2020.

However, findings show that the company is not registered on CAC website.

Like 1-Clicks Computers, another ‘company’ by the name of Adeshina & Co. Ltd received a contract of N1,000,000 to purchase office equipment and furniture in December 2020.

An 8-month-old company awarded multiple contracts

Against Part IV 6i of the Act, an 8-month-old company was awarded multiple contracts totalling five on the same day (March 31, 2022) and one on April 14.

While stating the requirements for bidding for government contracts, the section states that  a company must possess “professional and technical qualifications to carry out particular

procurements”.

Checks show that eight months after Kaybol Technologies registered with the CAC on June 10, 2021, the company received contracts worth N3,377,000 on March 31, 2022 from the government.

Funds Could Facilitate Other Projects 

Congestion and dilapidation have been used to describe the state of public schools in Ogun State. Specifically, some public schools are reportedly suffering from shortage of chairs, tables and teachers; while others in ruin have decrepit classroom buildings.

Probably to address the rot in the sector, the state government earmarked N109.219 billion for education in its 2024 budget. 

Meanwhile, the funds spent on the shady contracts could effectively be used for the construction of classrooms in the state.