Yakubu-led INEC illegally awarded N41.3bn contracts for ballot papers to importers, oil & gas firms -AGF

THE Auditor-Generation of the Federal (AGF) has accused the Independent National Electoral Commission (INEC) under Prof Mahmood Yakubu of awarding contracts worth N41.3 billion without due process, alleging that the contracts were illegally awarded to importers, oil and gas companies and civil engineering firms.

According to the 2022 AGF Report seen by Economy Post on Thursday, the nation’s chief auditor noted that the commission awarded contracts totalling N41.3 billion for the printing of ballot papers, result sheets and voting point sheets for various elections but did not provide evidence of contractors’ eligibility requirements to carry out such contracts.

“There was no evidence of previous similar work carried out by the contractors as some of the contractors were Civil Engineering Construction Company, Importer of Building Materials, and Oil and Gas Company, among others, in violation of extant provision on contractors’ eligibility,” the AGF said.

The nation’s chief auditor further alleged that INEC awarded the contracts without the approval of the Federal Executive Council (FEC), noting that there was no evidence of ‘No Objection’ approval from the Bureau of Public Procurement (BPP) for adopting selective tendering used by the Commission, and the quotations for other bidders, as required by the provisions of the extant regulstions, were not provided for audit examination.”

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But INEC pushed back on the allegations, claiming that “all the companies are technically qualified for the project and have their technical partners.” INEC also claimed that there was no report of leakage of ballot papers and results before the election because it was selecting tendering, stressing that the contracts were awarded in line with Section 15(2) of the Public Procurement Act (2007.

“Considering the volume of materials to be printed and the late release of funds for the election, it would have been disastrous to allow the Nigerian Security Printing and Minting Company alone to handle the entire printing,” INEC added’

The AGF, however, was not satisfied with the explanation, recommending that the INEC Chairman, Prof Yakubu, account for the N41.312 billion to the public account committees of the National Asssembly, while recovering and remitting the money to the treasury. Failure to do so would attract sanctions related to irregular payment and failure to spend public funds efficiently as specified in paragraphs 3106 and 3115 of the Financial Regulations (2009).

Vehicles’ price inflation

The AGF further accused the Yakubu-led INEC of contract inflation, saying that vehicles worth N50 million (Toyota Land Cruiser) each at the open market were supplied by a contractor at the cost of N74.444 million.

“A market survey carried out by the audit team showed that the price of Toyota Land Cruiser in 2019 was not above N50 million at the prevailing exchange rate of naira to a dollar when they were supplied, and the four Toyota Land Cruiser V8 VX-R Full Option were, however, supplied at the rate of N74,444,444 each despite the market survey report indicative of an inflated contract sum of N297,777,776.”

But INEC also responded to the AGF, claiming that the unit costs of the vehicles were approved by the Muhammadu Buhari-led presidency and the BPP, noting that the variation in 2018/2019 was a result of exchange rate fluctuations.

However, the AGF would have none of that, recommending that the INEC Chairman, Prof Yakubu, account for the N297.777 million inflated cost to the public account committees of the National Asssembly, while recovering and remitting the money to the treasury. Failure to do so would attract sanctions related to irregular payment and irregular award of contracts as specified in paragraphs 3117 and 3106 of the Financial Regulations (2009).

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Prof Yakubu was the INEC Chairman from 2015 to 2025. He has been nominated as an ambassador by President Bola Tinubu.

Allegations against other agencies

The AGF had disclosed that in 2022, an unnamed individual with 18 different companies won all the contracts at the Federal Institute of Industrial Research, Oshodi (FIIRO), Lagos.

Economy Post reported that the AGF had also accused the management of the National Insurance Commission (NAICOM) of deliberately understating revenue to the tune of N4.047 billion, while also making questionable payment for vehicles.

The AGF also accused the National Pension Commission (PenCom) of paying N7.261 billion to 2,863 unidentified beneficiaries of deceased Federal Government employees in 2022 through different Pension Fund Administrators (PFAs) without details.

The National Assembly Service Commission  was equally accused of inflating a contract worth N11.647 billion, while paying a contractor without approval.

The AGF further alleged that the Ministry of Mines and Steel Development committed multiple acts of fraud, ranging from an inability to account for over N5 billion to the payment for a road contract without evidence of execution.

The AGF likewise accused the Federal Capital Territory (FCT) Police Command of booking 42 AK-47 rifles and pistols as well as 737 live ammunition in 2 years without returning or re-booking them.

The office said police personnel under the command booked live ammunition and firearms from the FCT CID between 2021 and 2022, but its failure to return or re-book them made it difficult to verify the existence or otherwise of such arms.

READ ALSO: Truth under fire: The multi-front assault on facts during 2023 Nigerian election

The AGF picked holes in contracts awarded by the National Agencies For Prohibition Of Traffic In Persons (NAPTIP) IN 2020, describing them as ‘anomalies.’

He disclosed that a contract valued at N21.879 million was awarded to a contractor for sensitisation on the effects of child labour in Lokoja/Koto Federal Constituency, Kogi State.

The AGF also alleged that the Environmental Health Registration Council (EHORECON) kept public funds in staff’s private bank accounts, thereby violating Paragraph 713 of the 2009 Financial Regulations. 

The office further said that the Vice-Chancellor of Michael Okpara University of Agriculture, Umudike (MOUAU), Prof Professor Maduebibisi Ofo Iwe, paid for jobs that were not executed.

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