Senate queries Mortgage Bank over illegal N3bn contract
The Senate Committee on Public Accounts has queried the Federal Mortgage Bank over irregular award of N3bn contract in four phases.
The query was hinged on the 2018 report of the office of the Auditor-General for the Federation.
The report is being considered by the Senate committee, chaired by Senator Matthew Urhoghide.
The panel summoned the former Managing Director of the Federal Mortgage Bank, Gimba Yau Kumo, to appear before it and explain the rationale behind the irregular award of the contracts.
The report reads: “Audit observed that a contract was awarded to a contractor in four phases at a total contract sum of N3,045,391,531.97.
“Audit however observed that the second, third and fourth phases of the contract were above the approval thresholds of the Bank. It was also observed, from the examination of payment documents, that the contractor was overpaid in the sum of N 118,717,892.72 that resulted from irregular addition of 5% Withholding
Tax in the Bill of Quantity on each of the four phases of the contract.
“Audit further observed, from physical inspection of the site, that a provision of N80, 000,000.00 was made and paid for the implementation of “Unified Access and Attendance System” but the device was not working according to specifications.”
Responding, the Managing Director of Federal Mortgage Bank, Ahmed Musa Dangiwa, explained: “The contract was awarded by the previous management in 2011 to design, build and implement a Mortgage Banking Business
Process Solution workflow and infrastructure with the aim of creating an enterprise software that will integrate all the Bank’s processes.
“This management, after an assessment, expressed dissatisfaction with the service rendered by the contractor.
“Management, thereafter, severally engaged the contractor over all the issues surrounding the project which include amongst others the issue of overpayment of the sum of N118m due to wrong addition of WHT to the contract award sum in all the four phases as well as other payment to the contractor.”