Ahead 2017 budget approval: Electricity company spends N650m for office partitioning

We are not under threat – Spokesperson

By Patrick Andrew
Abuja

The Nigerian Bulk Electricity Trading (NBET), may have violated the Bureau of Public Procurement (BPP) due process, by procuring ‘Certificate of No Objection’ for selective tendering for architectural designs and partitioning of the office space ahead of the appropriation of the 2017 budget.
The bulk electricity trading company has come under fire for over bloated estimate of N650 million for architectural designs and partitioning of two-floor office space.

The NBET, which serves as an intermediary between Generation Companies of Nigeria (GENCos) and Distribution Companies of Nigeria (DISCos), is alleged to have diverted about N75 million meant for purchase of operational vehicles to the purchase of two jeeps for the use of Managing Director, Dr. Marilyn Amiobi, our investigation revealed.
However, NBET’s Head, Communication, Henrietta Ighomore, would not give a listening hear to the allegations, as she dismissed all inquiries with a wave of the hand, declaring that “we are not under threat.”

Nonetheless, the BPP has rebuked the leadership of NBET for ineptitude and failing to comply with the provisions of Section 16 (1b) of its Act which requires strict adherence to open tender and certainty of appropriation before procurement.
Under the 2007 BPP Act, all federal government agencies are required to adopt open tender for all government related contracts, failure of which amounts to violation of procurement procedures.
Obtaining the certificate is contrary to the BPP Act 16 (1b-d) to wit: “Based only on procurement plans supported by prior budgetary appropriations and no procurement proceedings shall be formalised until the procuring entity has ensured that funds are available to meet the obligations and subject to the threshold in the regulations made by the Bureau, has obtained a “Certificate of ‘No Objection’ to Contract Award” from the Bureau

“(c) By open competitive bidding, and (d) ‘in a manner which is transparent, timely, equitable for ensuring accountability and conformity with this Act and regulations deriving therefrom.”’
NBET, which was established in 2011, under the Electric Power Reform Act (EPSRA) 2005, to engage in the purchase and resale of electric power and ancillary services from independent power producers and generation companies, currently domiciles on the eight floor of the Bank of Industries (BoI) House, Central Business District, Abuja.
While seeking approval from the BPP to set aside procurement processes, it claimed its annual rent for the present office space is N50 million, an amount it said is not only a drain on the federal government, but ‘deems unsustainable.’

Though NBET got appropriation in 2016 budget for the office space allocated to it at the Transition Company of Nigeria (TCN) building at the Central Business District, Abuja, its entire appropriation was N600m out of which it accessed about N100million.
In the 2017 budget totalling N3.685,812,418 billion, which the company defended at the National Assembly recently, NBET leadership budgeted N650 million for the same office space, even when the amount is yet to be appropriated by NASS, which is still working on the 2017 budget.
However, NBET went on to procure certificate of No Objection in violation of the BPP Act above.
It sought approval from BPP about mid March, claiming it had received part of the funds required for the designs and partitioning of the office space from 2016 appropriation, and that additional provisions were made in the 2017 budget without waiting for necessary appropriation.
It shortlisted three companies namely: Julius Berger, Sageto Ltd, Zenarol Integrated Services Ltd, using selective tendering in disdain of open tender as required by law.
The agency said it needed to avoid funds appropriated in the 2016 budget being mopped up if its remains unutilised by the end of March 31.

The contractor is expected to design, produce bills of quantities, and partition the office as designed by the architectural consultant.
When Blueprint sought clarifications from the NBET’s Head of Communication, Henrietta Ighomore on Tuesday, she damned all questions and insisted that they only respond to questions sent through emails because NBET is a public organisation.

This was after a failed attempt to see her on Monday.
She said: “I don’t have time to waste. I have a lot of work on my table. In fact, we only respond to questions forwarded to us through emails. That is the civilised way things are done, more so because we are a public organisation.”
When asked whether having a face-to-face dialogue on sensitive matter was uncivilised, she retorted, “You can interpret it in whatever manner that suits you, all I know is that we only deal with responsible organisations. We are not under threat and can’t be threatened,” following which she walked out on this reporter.
Dependable source said BPP had slammed NBET for late submission, stating it ought to have initiated the process of no objection earlier and integrate same into the entity’s procurement plan as demanded by BPP Act Section 16 (1)(6).
“This is not a practice that BPP would condone as it reflects ineptitude on the part of the NBET’s procurement officers,” it said in response to NBET request.

Notwithstanding these observed anomalies, the bureau, however, gave approval as it said, “due process No Objection can be granted to NBET to adopt Select Tendering Method of Procurement” for the request.
This development, further investigation revealed, is causing some disquiet among staff members, who would rather want their present office retained to save cost.

“The partitioning or whatever it is called with N650million is a big hoax and it is another way of siphoning our lean resources. In fact, this can cover for us 13 years at current rent. This is not in tandem with the present administration’s austere style.
“It is even very disturbing that the BPP despite the procedural lapses noticed, could still go ahead to approve of the project when the National Assembly is yet to appropriate and the president assenting to the Appropriation Bill. This must be looked into,” our source volunteered


http://www.blueprint.ng/ahead-2017-budget-approval-electricity-company-spends-n650m-for-office-partitioning/

Please share your source before i post a piece of my mind

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chai!!! Na This kind people dey carry one naija for head!!! I hail one Nigeria!

Iamwrath:
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Done

Not trustworthy , i'll wait for SR, Punch or Tribune

Varys:


Done

nawa

Yes. Na Nigeria we dey. Even in the rule of the saints, evil thrives most.