Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said he would refer the Socio-Economic Rights and Accountability Project (SERAP) request for details of alleged contractors and companies that collected money for electricity projects and failed to execute them to the Ministry’s agencies “for necessary action and appropriate response.”
In a March 4 letter signed on his behalf by Louis O.N. Edozien, Permanent Secretary (Power), Fashola said his reply in February, to a Freedom of Information (FoI) request by SERAP, that the records requested is not held by the ministry was not an attempt to deny the requested information .
“The ministry is committed to compliance with the Laws of Nigeria including the Freedom of Information Act, 2011. The Ministry will refer your request to its agencies for necessary action and appropriate response”, Fashola said.
He added that there may be instances where some contractors collected part-payment and executed contracts commensurate to amount collected.
He also said the ministry does not have a record of any contractors that collected 100 per cent payment and failed to execute a contract.
“There may be instances of part-payment against certification of commensurate value for materials and services in achieved contract milestone even though the entire contract is not 100 per cent performed.”
“But the ministry does not have a record of any contractors that collected 100 per cent payment and failed to execute a contract.
“The ministry’s procurement and contract administration processes are strictly guided by relevant regulations that require the ministry to ensure Advanced Payment is limited to 15 per cent of the contract sum and is backed by an Advanced Payment Bank Guarantee (APG).”
“Our regulations also require the Ministry to release any APG only after recovery of commensurate value of contracted materials and services from the contractors who provided the APG. We make payments only upon certification of receipt of commensurate value for materials and services from the contractor,” Fashola said.
Source: Chukwudi Nweje, The Sun.