Ex-NDDC bosses to face trial over failed contracts

Posted by admin Niger Delta Tuesday, August 23rd, 2011

Former Managing Director of the Niger Delta Development Commission (NDDC), Mr. E. E. Aguariawodo and former Executive Director, Finance and Administration, Mr. Timi Alaibe are to be prosecuted by the Independent Corrupt Practices and other related offences Commission (ICPC) for their alleged involvement in N1.2billion contract scam

The duo have been found to have awarded contracts without budgetary provision, lack of cash backing and payment of mobilisation fees above what is required by law in direct contravention of the ICPC Act 2000
Two companies, Messrs Melbourne Energy Limited and Bafacos International Limited were also indicted and directed to refund the excess funds running into millions of naira collected in respect of various projects awarded by the Commission.
Aguariawodo and Alaibe reportedly signed the contract papers for the award of the canalisation project of Opuama and Tsekelewa Rivers to Messrs Melbourne Energy Limited in 2005 at the cost of N1.2billion

Reports of the investigation conducted by ICPC revealed that N600 million was paid as mobilisation fees to the company, representing 50 percent of the total contract sum in gross violation of laid down rules and regulations for the award of contract in the country
It was also discovered that only N200 million was provided for in the NDDC capital projects between 2004 and 2005 for the canalisation, while the NDDC Management led by Aguariawodo allegedly awarded a contract to the tune of N1.2 billion
Investigation by the anti-graft agency revealed further that the contractor despite collecting the sum of N600 million mobilisation fees abandoned the project site since 2005

The ICPC investigators said that, though there was no documentary evidence to show that the management of NDDC benefited from the N600 million paid to Melbourne Energy Ltd for the contract, “the negligence and non-enforcement and monitoring of the company to execute the contract as scheduled could be attributed to shielding the company from sanction which could be viewed as corrupt act.”
Specifically, the investigators said the evaluation report revealed that 35 percent value of the work was done despite collecting 50 percent down payment

The report further indicated that the contractor did not execute the project as specified in the contract paper before abandoning the project site
Messrs Aguariawodo and Alaibe were also said to have awarded the solar power water project in Opuama/Tsekelewu Community to Bafacos International Limited at the cost of N45.5 million on April 25, 2007 without budgetary provision and payment of 25 percent mobilisation fees
The ICPC investigators said the contractor had since abandoned the project site while 10 percent value of the work was executed.
When contacted yesterday, Alaibe said: “I have never been invited by ICPC for any investigation, I am not aware of what they are talking about. I only got to know when reporters started calling me that ICPC issued a release on its intent to prosecute me. I am not even aware of the issue in question and I got no invitation from ICPC to respond to any allegation.”

-Sunwp_posts