The House of Representatives is to investigate allegations of gross violation of the Public Procurement Act by the Central Bank of Nigeria (CBN), Federal Ministry of Finance and First Bank of Nigeria Limited over grant to Oyo State to procure agricultural equipment.
The House was not impressed by the fact that the primary beneficiaries of the grant were denied access to it because some public and private sectors
officials manipulated the process.
The Public Procurement Committee saddled with the responsibility of investigating the matter was given three days to report back to the House for further legislative action.
This followed the adoption of a motion of urgent national importance by Bode Ayorinde (PDP, Ondo), who recalled that in 2009, the CBN established the Commercial Agriculture Credit Scheme in collaboration with the Federal Ministry of Agriculture and Water Resources to fast-track the development of the agricultural sector; enhance national food security; reduce the cost of credit in agricultural production; increase national output; generate employment; and raise the level of foreign exchange earnings of the country.
He said since the Scheme was wholly funded by the Federal Government, all stakeholders are required under Section 15(1)(a)&(b) of the Public Procurement Act 2007 (“the Act”) to comply fully with the Act in all its procurement activities.
He however noted that contrary to the provisions of the Public Procurement Act and extant guidelines and regulations from the Bureau of Public Procurement (BPP), the administration of the Commercial Agriculture Credit Scheme in Oyo State was fraught with abuses, corruption and breach of the Public Procurement Act.
According to him, a number of approvals were issued under the Scheme for agricultural equipment to be procured under the Commercial Agriculture Credit Scheme based on which funds were released to Oyo State government and domiciled in First Bank of Nigeria.
He however regretted that beneficiary farmers in Oyo State have not received the disbursements, the suppliers of the agricultural equipment have not been paid and there are rife allegations that the State Government in collusion with officials of the Federal Ministry of Finance, the CBN and F irst Bank have opted to deposit the funds in a fixed deposit account and the interest income derived therefrom is shared amongst this cartel.
“This is a classic case of gross misconduct and the highest form of unethical behavior by First Bank of Nigeria.
“The actions of these officials in the public and private sector is undermining and sabotaging the intention of the Federal Government in making Nigeria fully self-sufficient in food production and an exporter of food and raw materials.
“If urgent steps are not taken to investigate these allegations and address any proven infractions, an institutional system of manipulation of the procurement and disbursement process would have been created and an awkward situation would have been created which will lead to financial losses to the Nigerian government”.
The motion was unanimously adopted after a voice vote.
