Thursday, 11 February 2016

Reps uncover massive fraud at TCN

We awarded N895m contract verbally —Director of Procurement
Written by: 
Jacob Segun Olatunji and Kolawole Daniel - Abuja
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THE House of Representatives Committee on Power has queried the Transmission Company of Nigeria (TCN) over alleged mismanagement of about N1.2 billion.

The money allegedly mismanaged by TCN was in two tranches, which included award of N400 million contract to zonal offices of TCN without due process and verbal award of N895 million by the management.

The Director of Procurement claimed that the N895 million contract was awarded verbally without following due process.

The director also told the committee that the contract had other issues as it was split.

He equally said when the issues on the N895 million contract were raised, Manitoba Hydro International (MHI) team that managed contractor for TCN said it was in charge of the project, adding that the TCN tender board then directed that the contract should be re-awarded.

According to her, “when the contract was awarded, I raised the issue at the management level and they told me to keep quiet.

“I raised it with  the board, they advised that they should go and do the needful. I then reminded my colleagues that we should be careful of what they are doing, as they could be recalled five years along the line to account for their action. I never knew that it will come soon. We are being called upon now to account for our action.”

To this end, the committee chairman, Honourable Daniel Effiong, directed the head of procurement of TCN to do a report on the matter, while promising that the matter would be reported to the appropriate government agencies for further action.

On the controversial N400 million contract, the director told the House committee that  the contract was awarded through the zonal offices of TCN, saying that they were paid the money despite the fact that they were only entitled to N2 million threshold.

The Director of Project told the committee that though the contract was awarded two years ago, it was cancelled and re-awarded to the regional managers to handle, due to the failure of the initial contractor.

She also claimed that the regional managers were asked to refund the money again, after a petition was raised against the contract.

To this end, the Minister of State for Power, Alhaji Mustapha Shehuri, pleaded with the committee, saying that the ministry would set up an investigative committee to investigate the allegations.

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