•MD summoned to Abuja

THE Federal Government has ordered a full scale investigation into the alleged N5billion contract scam rocking the Niger Delta Development Commission, NDDC.

Bickering and in-fighting among the management members of the commission was said to have led to the probe.

The Nigerian Compass learnt that the investigation was sequel to a petition written to the Presidency by one of the Executive Directors in charge of projects, Inibong Etteh.

Etteh, an architect, in the petition, accused the NDDC Managing Director, Mr. Chibuzor Ugwuoha, of unilaterally awarding about 51 various projects to cronies and associates without the authorisation of the approving bodies and against the commission’s standing financial regulations.

Ugwuoha had earlier alleged that the Executive Director, Projects, was engaging Consultants for the Commission’s contracts without due approval.

In the petition dated March 31, 2010 and addressed to the Secretary to the Government of the Federation, Alhaji Yayale Ahmed, a copy of which was made available to the Nigerian Compass, Etteh alleged that the MD of the NDDC breached the provision of authorisation manual of the commission and therefore should be made to account for it.

The development was also identified as the source of a cold war between Ugwuoha and Etteh, for which the SGF had summoned them several times.

It was reliably gathered that the Presidency decided to order a probe into the allegation as a result of the confusion that has enveloped the commission over the incessant in-fighting among the management members bordering on alleged unilateral decisions and breach of due process by Ugwuoha.

Reports say the NDDC boss has already been summoned to Abuja by the SGF.

Etteh, in his petition tagged: “Non Compliance With Authority Manual of NDDC by the Managing Director”, states that the MD has violated Article 560(f)(iv) of the Authorization Manual of the NDDC, stressing that he issued letters of award and backdated same to March 17, 2010.

In the petition to the SGF, Etteh says: “Sir, you will recall that in our last meeting with you in your office, you directed us to go and work harmoniously in line with the operational manual of the Commission until it is amended by the committee set up to do so.

“We came back and started working harmoniously until 26th and 27th March, 2010, when the Managing Director, after giving his approval for the award of contracts under N250 million threshold, decided to issue and sign all award letters by himself contrary to Article 560(f)(iv) of the authorization manual.

“Sir, by this, the MD has clearly violated article of the manual, thereby causing tension in the commission. If this scenario is encouraged, it means that the MD/CEO can generate project, approve and award without the knowledge of the EDP’s office.”

Article (f) (iv)of the authorization manual states: “Executive Director Project (EPD) now issues letters of awards and attaches the endorsed copy of BOQ/BEME to the contractor.”

Equally attached to Etteh’s petition were an internal memo of the Commission requesting the approval of the MD to issue certificate of compliance for small and medium sized projects for Rivers State and the memo initiated by the Head of the Directorate of Utilities, Infrastructural Development and Waterways, dated March 12, 2010 which was approved by the MD on March 24, 2010.

When contacted for comments on the petition, the Special Assistant to the Managing Director on Media Matters, Abraham Ogbodo, dismissed the petition. He described it as frivolous.

Ogbodo said: “What are they saying? If the MD/CEO does not have the power to award contracts who else will have the power.

“There is a threshold set by the Bureau of Public Procurement and the Central Executive Council and I don’t think the MD has done anything wrong.”

He added that the whole thing might be political after all because “they don’t need to address the press over this”.

He stressed that both the MD and the Executive Director had been working together harmoniously, wondering where the petition emanated from.

In a related development, the Niger-Delta Stakeholders Forum, NDSF, has called for full investigation of the allegations contained in the petition, pointing out that they are too significant to be swept under the carpet.

While addressing reporters on the issue in Abuja yesterday, the spokesman of the group, Dr Emmanuel Ukpanam, who claimed his group is aware of the petition, said the role of the NDDC in delivering on the much needed sustainable development of the region was being threatened by the avoidable internal wrangling between the MD and Etteh.

The NDSF spokesman said: “We are aware that various stakeholders have intervened to resolve the crisis between them, since the board was inaugurated in August last year. Some of the stakeholders include NASS members from the region, as well as committees of both chambers in the National Assembly, office of the SGF and even security agencies.”