Saturday, February 11, 2012
   
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Jonathan, greed and Reps’ N2.3bn car scam

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PRESIDENT Goodluck Jonathan took time out this week to harp on the troubling question of greed by the actors in the nation’s procurement process. He was speaking at the presidential retreat on the first four years implementation plan of the Vision 20:2020 and Public Private Partnership (PPP) framework for infrastructure development in Nigeria. He regretted that greed was responsible for inflation of contracts in the country and was the main stumbling block on Nigeria’s march to progress.  Those in position, he observed, tend to inflate contracts for their personal gains and, therefore, double the cost of procurements to the detriment of the general good.

This fact is known to every Nigerians, including those who thrive in it. But who cares? Maybe now that he has pushed it to the fore apparently to demonstrate his administration’s commitment to tackle the ugly trend, it may begin to gain some attention.  Hear him: “For example, somebody in the private sector who is contractor to the government who is to provide services or execute a contract, what is supposed to cost government N10, 000, he will collaborate with the government functionaries to increase it to N30, 000 and if  cautioned, will say that he is a businessman and is not corrupt.  But to me, if procurement will cost three times what it is supposed to cost, then by implication, any amount of money we spend from our capital budget you are retarding us by a number of years.”

He was obviously worried about the consequences of inflation of contracts on the ability of government to meet the yearnings of the citizens of a nation that is writhing under the excruciating weight of decaying infrastructure. It is sickening to conjecture how deep this nation wallows in gross mismanagement of its endowments.  ”For instance money that will give us three vehicles, we end up getting one, money that will give us three diagrams, we are getting one, money that will give us 30 kilometres of road, we are getting 10; then our visioning will not materialise,” President Jonathan further observed ruefully. With that, he vowed that his government would overhaul the procurement process of government to ensure that projects were implemented at appropriate costs.

Dr. Jonathan’s remarks immediately brings to mind the raging controversy in the House of Representatives over a N2.3billion car supply scandal which has led to the demand by a group of members for the resignation of Speaker Dimeji Bankole. Bankole was accused of complicity as they alleged that he presided over the inflation of contract for the supply of 380 units of cars to members. The problem stemed from the contract awarded to Peugoet Automobile Nigeria (PAN) which quoted N6, 209,175 per 407 ST Sport, bringing the total sum of the contract to N2, 359, 486,500. But what it eventually supplied was 407 Comfort Automatic worth N5, 100,000 each, amounting to a difference of N1, 109,175.00 per car. While the total contract sum was paid, there is no record of refund of the difference that arose from the change in specification.

It became a subject of interest for the Economic and Financial Crimes Commission (EFCC), but curiously, both the Speaker and the Commission strenuously denied that the matter was being investigated when a few newspapers first broke the story.  The reporters who got the scoop on EFCC’s first interaction with Speaker Bankole on the matter in August 2008 did not only become the subjects of evil blackmail but were continuously hounded by his office and one or two of his collaborators in the media industry.

But only last Sunday night, Hon Dimeji recalled the same story to reporters and admitted he, indeed, at that  time, had a date with the EFCC Chairman, Mrs Farida Waziri. He claimed in the Sunday night chat with newsmen that unknown to most of his colleagues, he invited the EFCC operatives to his office to probe the car supply contract, but that the newspaper story was “twisted” in the reports.

Today, the matter persists and there has been pressure on the Presidency to either act on the matter or ignore it. How President Jonathan approaches it in the light of his renewed campaign for a corrupt-free procurement process would be interesting to see.

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