Another scam hits House of Reps – over N500m purchases

Funds for the purchases were said to have been generated from the virement of N1.5 billion from the National Assembly budget. Documents made available indicated that a meeting of the body of Principal officers of the House of Representatives had met on May 28, 2008 to ratify the purchases, which stood at N335.5 million for cars and N209 million for other items, including computers and photocopiers.

The office of the Speaker of the House of Representatives, Hon. Dimeji Bankole had on Wednesday alerted of a destabilization plot by some unnamed Reps, insinuating that some documents were being circulated in furtherance of that plot.

But the fresh allegations are coming in the wake of the probe instituted into the purchase of 380 Peugeot 407 cars, which reared its head early September.

In a statement on Wednesday, the Chief Press Secretary to Speaker Bankole, Mr. Idowu Bakare, alleged that there were moves to circulate some falsified documents about contract awards in the House.

But fresh documents relating to the cars purchase show that the House bought three Mercedes Benz S-600 model at the sum of N158 million. Each of the cars meant for the use of the Speaker and his Deputy and which were described as “treated” model cost N52.8 million.

There was also the purchase of two Range Rover (treated) jeeps at the rate of N57.2 million each. The two jeeps cost the sum of N114.4 million. One Range Rover (special) was also said to have been purchased for the office of the Speaker at the cost of N30 million, while another Range RoverV8 bought at the cost of N27 million for the Leader of the House.

It was gathered that all the purchases were awarded through the Management of National Assembly on June 28, 2008 to a company based in Kano.

Also, the Principal Officers’ meeting of May 28 was also said to have approved the purchase of one Toyota Lexus GX jeep for the use of the Chief Whip at the cost of N13.75 million.

Allegations by a group of lawmakers indicated that though the contract was awarded on June 25, 2008, the car had been supplied to the Chief Whip on December 16, 2007.

The document made available indicated that the jeep was supplied at the cost of N12.5 million in December 2007 but that a Central Bank of Nigeria’s cheque with number Chq00001925( including 5% Tax and 5% VAT) was said to have been paid to a motor company. The cheque was to the tune of N13.75 million.

Documents also alleged that while the House earlier included the sum of N1.375 million being 5% VAT and 5% Tax in the payment to the motor company, it also paid the same sum as Tax directly to the Federal Inland Revenue Service (FIRS) through cheque number 00001926 and 1927 on September 12, 2008.

There were also documents that the House paid out the sum of N49 million to a company in Abuja for the purchase of 150 desktop computers . There was another payment of N27 million for the supply of Sharp Digital Copiers to another company along Ibrahim Taiwo road, Kano. The sum of N65.6 million was paid to a ventures ltd , Ibadan street ,Kaduna for the purchase of 125 number Samsung LCD television sets and another N65.6 million was paid to a company atArea 11, Garki, Abuja for the supply of 125 40’ Samsung LCD television sets.

The document alleged that the products were priced beyond the market value. It was also stated that all the contracts were awarded from the N1.5 billion virement from the National Assembly budget.

In a statement to pre-empt the release of the documents however, the office of the speaker said that “there was an undercurrent machination to assault the integrity of the leadership using issues that relate to the contract award.”

“We are not surprised at this new development, especially when we consider the failed orchestrated plot to criminalise the purchase of 380 ST Sport Auto cars for committees of the House.

”We wish to draw the attention of the public and, indeed, the media to this wicked plot designed to undermine the oversight and anti-corruption, for which the House of Representatives has been defined.”

Expenditures at the House of Representatives
A meeting of the Body of Principal Officers of the House which held on 28th May, 2008 approved the purchase of the underlisted vehicles at a cost of N335.5m for the use of the Speaker, Deputy Speaker and the House Leader.

– 3Nos. Mercedes Benz (Treated) S-600 @ N52.8m = N158.4m for Speaker/D.Speaker

– 2Nos. Range Rover (Treated) @ N57.2m = N114.4m for Speaker & D.Speaker

– 1No. Range Rover (Special) @ #30m for Speaker

– 1No. Range Rover V8 @ N27m for House Leader

All the purchases were awarded through the National assembly Management on 30th June, 2008 to a company in Kano without any evidence of competitive bidding.

The sum of N83.875 being 25% part payment was paid vide CBN Chq Nos 00001922, 1923 & 1924 of 12/09/08.

The same meeting of Body of Principal Officers of 28th May, 2008 ratified the purchase of 1No. Toyota Lexus GX for the Chief Whip at a cost of N13.75m.

The award was on the 25th June, 2008 although the vehicle had been supplied to the Whip since 16th December, 2007 at a cost of N12.5m.

It is noteworthy that the supplier, to which the total sum of N13.75m was paid vide CBN Chq 00001925 (including 5% Tax & 5% VAT)- does not exist in the records of the Corporate Affairs Commission.

It is also noteworthy that the sum of N1.375m being 5% Tax & 5% VAT earlier included in the payment to a company was again paid directly to the FIRS vide CBN Chqs 00001926 & 1927 also of 12/09/08. Of course, there was no evidence of competitive bidding.

The same Body of Principal Officers Meeting of 28th May, 2008 also approved the purchase of various office equipments out of the sum of N1.5billion earlier vired from National Assembly Budget.

Some of such purchases include but not limited to: -400units of Samsung LNS341 LCD TVs @ N525,000 each. (Average market price is N200,000)

-800units of HP Compaq5700 Desktop Computers with HP 2015 Laserjet Printer and UPS @ N330,000 per set (Average market price is N180,000 per set)

-400units of Sharp 5316 Digital Copiers @ N270,000 each (average market price is N130,000 each)

All the purchases were awarded through the National Assembly Management on the same 11th June, 2008 to companies that were largely not registered with the CAC.

The total contract sums were paid on 05/09/08 vide CBN Chq Nos 00001880……….1910 inclusive of 5% Tax & 5% VAT which were also subsequently double-paid directly to the FIRS vide CBN Chq Nos 0000