The House of Representatives’ Ad-hoc Committee recently set up to investigate an alleged billions of dollars contract scam at the Nigeria Railway Corporation (NRC) has been under pressure in the last few days from powerful political forces to drop the investigation, one of the principal officers in the House told THISDAY on Friday.
According to the principal officer who pleaded anonymity, “Some principal officers and some members of the committee are under serious pressure by those linked to the contract scam to drop the public hearing on the matter.
“But we have told the committee to go ahead with the investigation. Nobody will be witch-haunted over the matter. The House is only interested in exposing the scam and bringing those linked to it to justice.’’
This came as the investigative committee has given the immediate past Minister of Transport, Senator Idris A. Umar; top officials of the ministry; the Managing Director of NRC, Mr. Adeseyi Sijuwade; Alhaji Bamaga Tukur, and Alhaji Kawu Baraje, ex-chairmen of the corporation and others a seven-day ultimatum to put in writing all they know about the scam.
The chairman of the committee, Hon. E. J Agbonayinma from Edo State who confirmed to THISDAY the committee’s letters to the affected people, said the committee would commence public hearing on the matter as from next week.
“We have sent letters to all those we think should have something to tell us about the matters, requesting them to send their memo to the committee; we want to be fair to everybody. Our mandate is to dig out the truth,’’ Agbonayinma told THISDAY in Abuja.
The House had on Tuesday, October 13, set up an Ad-hoc Committee to investigate the Federal Ministry of Transport and the NRC on “the award of contract for rehabilitation of railway tracks, maintenance of bridges and procurement/rehabilitation of coaches and locomotive from 2010 to 2014’’ under former President Goodluck Jonathan Administration.
The contracts/projects, which are being funded through appropriation in the federal budget, foreign loans and the Subsidy Re-Investment Programme (SURE-P), include: the 463km Port-Harcourt-Makurdi, N19.96 billion; Abuja-Kaduna, $841 million; Jebba- Kano, N12.16 billion; Lagos to Jebba, N12.3 billion; and Zaria to Kaura, N3.2 billion.
The House alleges that the federal government had expended over N18.72 billion so far on the projects, with little or nothing on ground to show for the huge amount.
For example, the House had expressed worry over the level of performance with respect to the rail track contracts, particularly the 463 km Port-Harcourt-Makurdi with a total sum of N19.96 billion, out of which the NRC paid N4.017 billion, while SURE-P paid N5.59 billion. Only about 3km of Ballast had been done, according to the NRC’s presentation to the federal government.
Apart from submissions from different agencies, which alluded to the alleged contracts scam, THISDAY gathered in Abuja that members of the investigative Ad-hoc Committee would be relying on the ‘’Department of State Services Report’’ during their public hearing on the matter.
The DS investigation into the NRC contracts was instituted by the Jonathan administration in 2011.
In the DSS report entitled, “Manipulation of Contract Awards At The Nigeria Railway Corporation (NRC)’’ with reference number 5.389/250, addressed to the Secretary to the Government of the Federation, the security agency alleged that the NRC’s CEO and the ex-minister of transport, Umar, were at the fore of the alleged dirty contract deals.
According to the DSS: “Investigation has revealed that the process for the award of the contract for the rehabilitation of NRC’s Port-Harcourt – Kaduna and Kafanchan-Maiduguri lines are fraught with corruption and irregularities, masterminded by Sijuwade.”
Sijuwade was also accused of manipulating the contract procedures to favour “predetermined contractors and recommending unqualified contractors for specified jobs.’’
For example, the DSS alleged that the contract for the rehabilitation of Port-Harcourt-Kaduna Junction – estimated by NRC’s consultant to cost N47.88 billion had 13 companies pre-qualified to tender for the jobs. And the bids of five companies: Syndicate Construction and Commercial Company Ltd (SCCL), N40.668 billion; Metro Technical Ltd/Canca PSO Alliance, N41.21billion;
Robam/Assant/Railcop, N45.45 billion; and CCECC Nig. Ltd, N47.13 billion, were assessed to be within the agency’s acceptable range.
However, the DSS said it later discovered that during the verification exercise by NRC, SCCCL submitted forged Tax Clearance Certificate purportedly issued by the Federal Inland Revenue Service (FIRS) Gwagwalada office, dated June 29, 2010. “Despite this discovery, the MD of NRC is believed to be favourably disposed to SCCCL, as he has recommended the company to the Federal Ministry of Transport, for the award of the contract,’’ DSS stated.
“In a letter with reference number GWTTO/83/VOL.II/197 signed by Bawa, S. S, Tax Controller of FIRS confirmed that the Tax Clearance Certificated purportedly issued to SCCL, was forged,” alleged the DSS.
In the contract for the rehabilitation of Kafanchan-Maiduguri, the DSS’ investigation further revealed that 13 companies were shortlisted for the contract after a pre-qualification.
The following competitive bids were within the consultant’s estimate of N30.768 billion: ESER Nigeria Contracting Coy Ltd – N27.52 billion; Bulletine Construction – N27.70 billion; SCCCL-N30.26 billion; Sky Technical and Construction Coy-N30.11 billion; Robam/Assent/Railcop–N31.76 billion and Metro Technical Ltd/CANAC PSO Alliance –N31.94 billion.
In compliance with the Public Procurement Act 2007, THISDAY gathered that the bid for the contract was opened on May 26, 2010, about 1600hrs, at the NRC Headquarters’ Conference Room, Ebute Metta, Lagos, under the guidance of a Board member and chairman of the Finance and General Purpose Committee, Mr. Ladan Shuni.
According to the findings of the DSS, the committee could not conclude the compilation of the bid documents, as the exercise lasted into the night and was to be completed the following day. But the security agency said that on May 27, 2010, the MD of NRC sent two members of his staff: Alex Aroloye and Wale Murphy, to pack the bid documents to his office.
The DSS stated: “The MD, Adeseyi Sijuwade, in a move to ensure that ESER is recommended for the contract, despite the fact the company did not submit evidence of bid security as at May 26, 2010, when the bid was opened, caused the company to open an account with Skye Bank Plc , on June 16, 2010 – three weeks later.
“The bid security requirement was obtained and inserted in the bid documents of ESER. This is in contravention of Public Procurement Act 2007, Section 58 (8b).’’
The DSS in its report signed by Mr. Tunde Aderiyi for The Director-General, accused Sijuwade of favouring ESER Nig Contracting Coy Ltd, which is believed to be a family company.
“The company has one Ade Sijuwade, a brother to the MD, as a signatory to the company’s account at Skye Bank, Adeola Hopewell Branch, Victoria Island, Lagos’’, the DSS further stated.
“The current administration in NRC under Sijuwade, has not shown any sign of seriousness, to revamp the system as it has allowed personal interest to override his duties.’’
The DSS had recommended that the Economic and Financial Crimes Commission (EFCC) should further investigate the matter and bring the culprits to book, including prosecution of some of the criminal breaches of the procedure.
