The Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies, corporations, councils, authorities, and commissions that they risk sanctions for breaching procurement regulations.
The government raised the alarm over contract awards that exceed approved price benchmarks, restricted competition through exclusive arrangements for contractors and undermine regulatory oversight.
The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of Federal Government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, or face penalties.
The circular, obtained by our correspondent in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, among other senior public officials.
Akume expressed concern that several government-owned enterprises and corporations continued to award contracts in violation of the procurement law, despite its amendment by the Finance Act, 2020.
He said the practice had resulted in inflated contract sums, restricted competition and inadequate regulatory oversight, warning that the government would no longer tolerate such breaches.
The SGF consequently directed all government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Act.
He also instructed heads of the affected institutions, who serve as accounting officers, to liaise with the Bureau of Public Procurement for guidance, stressing that those who continued to award contracts in violation of the law would be sanctioned.
The directive places responsibility for procurement compliance on accounting officers and requires immediate circulation of the circular among them for strict implementation.
The circular stated, “It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007.”
According to the SGF, the practice had contributed to inflated contract prices, restricted competition and inadequate regulatory oversight in public procurement.
“This practice has resulted in contract sums that are above established pricing benchmarks, captive markets for exclusive contractors, significant departure from approved guidelines, and absence of critical regulatory oversight, amongst other lapses,” the circular added.
Akume declared that the government would no longer tolerate such violations, warning that institutions that continued to disregard procurement regulations would face consequences.
“This non-compliance is unacceptable and will no longer be tolerated,” he said.
Consequently, the SGF directed all federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Public Procurement Act.
The circular stated, “Therefore, to ensure that the core principles of transparency, accountability and value for money are achieved, all Federal Government Owned Enterprises, Corporations, Councils, Authorities and Commissions are accordingly directed to ensure that their procurements are implemented in line with the Public Procurement Act, 2007, provided they utilise public funds.”
The directive places particular responsibility on the heads of the affected institutions, who also serve as accounting officers, warning that they would be held accountable for continuing to award contracts outside the provisions of the law.
Akume specifically instructed the accounting officers to engage the Bureau of Public Procurement for guidance on the implementation of the procurement regulations.
The circular stated, “The Heads of Enterprises, Corporations, Councils, Authorities and Commissions, who are also the Accounting Officers, are hereby directed to liaise with the Bureau of Public Procurement for further guidance, as any Accounting Officer who contravenes this directive and continues to award contracts without recourse to the provisions of the Public Procurement Act, 2007, shall be sanctioned accordingly.”
