WorldStage Newsonine– A desperate reaction by Lagos State government through its Lagos State Public Procurement Agency (LSPPA)to a revelation by Funso Doherty, the governorship candidate of the African Democratic Congress (ADC) that the Babajide Sanwo-Olu government engaged in series of reckless spending may have caused more damages to it’s integrity, as the agency’s reaction confirmed ambiguous expenses that contradicted the advice of the government agency.
The Stating Facts And Figures document released by LSPPA as reaction to the open letter by Mr Funso Doherty confirmed some projects’ costs which the procurement agency questioned, but the government provided some unconvincing defense that will not tally with the economic reality of the country and the objectives of the government agencies concerned.
The first project was Lagos Metropolitan Area Transport Authority (LAMATA)for Construction, Supply & Installation of Operation and Maintenance (0&M) Infrastructure of LRMT Blue Line Phase 1 from Marina to Mile 2 by China Civil Engineering Construction Company (CCECC) Nigeria Limited at a cost of N40,188.644,336 in April 2023. The query of on the project was that “The Blue Line was planned to be operated and maintained by a qualified and competent operator on a PPP basis. This arrangement is not in place, but train operations have started. Who is performing that function presently and who will manage, operate and maintain this Operations and Maintenance (0&M) Infrastructure that is now being procured by LASG from the main contractor (CCECC) at a cost of N40bn? Is it LAMATA? If so, does it have the capacity? How are safety, efficiency, accountability and financial results being assured, monitored and reported?”
However, government response to the observation was “The Blue Line Rail Project’s design and construction were entrusted to Messr CCECC Nigeria Limited. Subsequently, upon Finalizing the Fixed infrastructure, a two-year partial operation contract was executed with the contractor for the following purposes: § bolster the technical and operational expertise of LAMATA’s teams, fostering their capacity. § meticulously gather scientific Financial and revenue data essential for informed decision-making processes. § equip pertinent practitioners with the necessary information crucial for forthcoming concessioning procedures. § empower the contractor to promptly address any defects identified during the operational phase of the project.”
Other projects where the agency raised an eyebrow include Rehabilitation / Reconstruction/ upgrade of Eti-Osa / Lekki / Epe Expressway (Phase 2b) from Greensprings to Abraham Adesanya in Eti -Osa and Ibeju – Lekki LGA at N69,936,201,915 with a query that “This single award for the repair and upgrade of a section of an already existing road amounts to approximately half of the entire 2023 budget for the Ministry of Works and Infrastructure. A comprehensive and preferably independent, value -for -money assessment should be done for this contract.”
There was a project ‘Procurement and Construction and Design, Build Operate and Maintain PPP Model for the Blueline Rail by the Ministry of Energy and Mineral Resources at N9,714,179,610 where the procurement agency asked “This relates to an Independent Power Plant proposed to power the Blue Line Rail on a Design, Build, Operate and Maintain PPP Model. This was originally intended to be Financed by the concessionaire. From this award, it now appears that the setup cost is being borne by LASG. The award makes reference to a PPP, but it is not evident that a PPP process has been advertised, undertaken or disclosed by the LASG PPP Office. It is therefore not clear on what basis this N9.7 bn contract was awarded, whether a concession is involved and what terms are provided for.”
The Office of the Chief of Staff also had a project to Supply and distribution of 2,000 Noiler Chicken across the local government areas and wards in the state at N18,468,000; Procurement of a brand new Lexus LX 600 Bullet Proof Sport Utility Vehicle for use in the Pool of Office of Chief of Staff at N440,750,000; Replacement of the liquid fragrance in the Office of Mr Governor, Lagos House, Ikeja at N7,475,000; Decoration of Venue for Political Delegates Congress ay N20,804,550; Flying Hour Expenses on Ad-hoc Charter Plane by Lagos State Government at N400,000,000 in July 2023; Flying Hour Expenses on Ad-hoc Charter Plane by Lagos State Government at N112,500,000 in August 2023; Procurement of 10 units brand new Hyundai County Buses for use in the Pool of the Office of the Chief of Staff at N600,000,006.
The procurement agency reactions to these projects from the office of the Chief of Staff respectively are;
“It is not clear why the Office of the Chief of Staff should be engaged in supplying and distributing Chickens across the state.
“This appears excessive and is out-of tune with both the prevailing economic circumstances and mood of the people. It should be scrutinized as to the need and justification for such a vehicle purchase and also value for money
“On the face of it, and especially in the present economic circumstances, the amount of this award appears excessive in relation to the item procured.
“Official Government Funds should not be used for political expenses.
“This should be scrutinized as to the need and justification for such substantial cost at taxpayer’s expense and also value-for-money
“This should be scrutinized as to the need and justification for such substantial cost at taxpayer’s expense and also value-for-money.”
Among other projects listed were monthly outreach of indigent citizens by wife of the Deputy Governor from the Office of the Deputy Governor which the agency queried that “Though the intention may be laudable, these should not be funded from the budget of the Office of the Deputy Governor.”
A project by Lagos State Lotteries and Gaming Authority was listed as ‘Implementation of Feasibility Study for Lekki-Epe International Airport’ at N195,000,000 which the agency said “Substantial costs are being incurred by the Lagos State Lotteries and Gaming Authority far above the revenues it is generating for wide ranging and disparate purposes. As at September, the Authority’s 2023 revenues were reported at approximately N3.3bn and expenditure at approximately N11.4bn. This contradicts the rationale for the existence of the Authority and should be examined.”
The Ministry of Home Affairs had a project for the Renovation of Saint Andrews Anglican Church, Oke-Popo, Lagos at N531,553,559 with the procurement agency asking, “Why is LASG spending N531 million of taxpayer money to renovate a Church?”
The government defence for this was “The Church was founded in 1889 and stands as a significant historical landmark in Lagos State. The need for the State to preserve such landmark can therefore not be overemphasized. The contract amount encompasses funds allocated for both the refurbishment of the Church and compensation given to the church for the necessary demolition of sections of its property due to road expansion.”
In a covering letter to the document signed by Mr Fatai Idowu Onafowote, Director General LSPPA, he “regretted that specific details, particularly concerning the descriptions of the government dealings, may have inadvertently led to confusion, impacting both government entities and corporate partners providing services to the state.”
