Senate accuses NIMASA of paying N1.6bn for unexecuted contracts

Lawmakers accuse NIWA of dubious contracts


The Senate Committee on Public Accounts has raised an indictment in an Audit Report by the Auditor General of the Federal (AuGF) against the Nigerian Maritime Administration and Safety Agency (NIMASA) over illegal payment of N1.6 billion to contractors for unexecuted contracts.

The committee resolved to uphold the query of the AuGF against NIMASA after the agency failed to appear before it.

This followed series of invitations extended to the agency without response.

Committee Chairman Matthew Urhoghide said the agency had refused to appear before the panel, notwithstanding series of invitations sent to it.

He added that since NIMASA refused to appear, the committee had to sustain the AuGF’s query against the agency.

The 2015 Audit Report of the AuGF reads: “A total sum of N8.6 million was paid to a company as contract/professional fees for store organisation audit and inventory management system vide 2 (two) payment vouchers numbers UBA/EP/12/00309 of 8/3/12 and UBA/EP/13/0267 of 21/3/13.

“The contract entailed core store organisation and inventory management system aimed at efficient record-keeping, asset location, among others, but a physical audit verification of the store showed that this job was not carried out as assets worth billions of naira could not be effectively located and accounted for, contrary to the purpose of the contract.

“The payment for this contract contravenes Financial Regulation 3104 (iii), which guards against payments for jobs not executed.”