Allegations Surface: Minister Umahi Accused of Disbursing N9.3 Billion Illegally
Tracka, the monitoring platform by BudgIT, has leveled accusations against the Minister of Works, David Umahi, asserting that he disbursed a substantial sum of N9.3 billion from the Federal Ministry of Works to FIMS Microfinance Bank Ltd. This alleged action is deemed a contravention of the 2007 Public Procurement Act.
According to Tracka, this disbursement unfolded between June and December 2023, spanning 62 projects, inclusive of nationwide road constructions. The reported projects encompass a spectrum of initiatives, such as the N1.4 billion allocation for the construction of Yaba-Yangoje Road in the Federal Capital Territory, N1.2 billion for the rehabilitation of a 2km road in Atiba, Oyo state, and an equivalent amount for the rehabilitation of Ejule-otukpo Road in Benue State, among others.
The report highlights potential violations of the 2007 Public Procurement Act, specifically citing section 16 (6) (a) (i), (iii), and (iv). These sections outline the requisite qualifications, financial capability, and infrastructure prerequisites for bidders involved in procurement contracts. The legality of disbursing funds to FIMS Microfinance Bank Ltd, an institution not recognized for construction services, raises significant concerns.
Quoting the report, "As a financial institution, the award of road construction contracts amongst others to this company is a violation of the Public Procurement Act 2007, specifically s.16 (6) (a) (i), (iii), and (iv)."
Tracka has reportedly sent a request to Minister Umahi for a response to these allegations. Additionally, the organization calls upon the Bureau of Public Procurement to scrutinize the transactions for any violations and impose appropriate sanctions. The report also urges anti-graft agencies, including the Independent Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC), to conduct thorough investigations and prosecute any implicated officials.
In the wake of these accusations, the report underscores the necessity for accountability and adherence to procurement regulations, signaling a potential legal and ethical quandary for the implicated parties.
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