N26bn Inflated Contracts: Fashola Dares BPP To Publish Its Rates

The Honorable Minister of Works and Housing, Mr Babatunde Raji Fashola has challenged the Bureau of Public Procurement (BPP) to publish the rates quoted by various contractors, reviewed by his Ministry and sent to BPP for certification.

The minister was reacting to headlines from some reports credited to the BPP about its having “…saved over N26 billion…” for the Federal Government in the year 2018 by revising down “inflated” contract sums by Government Contractors some of which emanated from the erstwhile Ministry of Power Works and Housing.

“Being a department of the same Government, ordinarily this should not warrant a reply; however the misleading nature of the Reporting in the media and the statements credited to BPP compel a response for the purposes of clarification and enlightenment of the public,” a statement from the minister’s Special Adviser on Communications, Hakeem Bello, reads in part.

“Any person who takes time to read the provisions of the Public Procurement Act, which created the BPP will understand that no contract can be awarded until BPP certifies that it has NO OBJECTION.

“Therefore there was no INFLATED contract because BPP clearly stated that it reduced the costs, and according to BPP she “… saved over N26 Billion…And this is the heart of the matter, because BPP’s “savings” can only be a SUBJECTIVE assessment based on rates quoted by contractors, reviewed by the Ministry , and sent to BPP for certification.

“Until BPP publishes its rates which the then Ministry of Power, Works and Housing has demanded in writing, there can be no OBJECTIVE basis for determining whether any SAVINGS  were indeed made if only BPP knows its own Rates for procurement.

“Once rates are published and design is known, quantities can be ascertained and costs can be determined. This is the field of Quantity Surveyors and Construction Economists, and the Minister of Works and Housing has not made any secret about his call for a revision of the Public Procurement Act to resolve this and other gaps in the Law.

“Indeed, during the first term of this Administration, the Ministry of Power, Works and Housing had commissioned the compilation of a service wide Rate of major items of procurement from the largest to the smallest for BPP to consider, adopt or amend and publish.

“This is the type of Reform that the Minister advocates and welcomes to improve uniformity, Transparency, Accountability and value for money in public procurement.”