NIGERIA MASTERWEB DAILY NEWS

*Nigeria: Niger Delta & Poor Contract Execution

By Ifeatu Agbu

It is a well known fact that the process of contract award both in the public and private sectors in Nigeria, leaves much to be desired. It has not only entrenched corruption in the system, but has also contributed immeasurably to the underdevelopment of our country. This leads to unquantifiable wastages and delays, as well as loss of confidence in Nigeria by foreign and even local investors. This ugly scenario may have spurred the Federal Government to introduce reforms to ensure a more effective system of awarding contracts and monitoring their execution. This included the passage of the Bureau for Public Procurement [BPP] Act 2007, which institutionalised due process and transparency in contract awards and executions.

Recently, the Minister of Works, Senator Sanusi Daggash, told contractors handling the Kaduna Eastern Bye-pass that “enough is enough.” He was obviously appalled by the slow pace of work on the 58.8 kilometre road, which was started in 2002 and was to be completed in 2005. Since then, the contractor had continued to ask for one extension after another. The Minister just could not continue to stomach the rot in the system. So he warned that no contractor would be allowed to take Nigeria for granted through incessant delays and extension of completion dates. He also stated that the era of impunity and lackadaisical performance in contract execution was over.

This is not the first time top government officials would be expressing disgust over the dubious attitude of many contractors and threatening to take tough measures to curb their excesses. Even then, nothing seems to have changed over the years. One can only hope that the new administration of President Goodluck Jonathan would be able to make a substantial difference in this aspect. Without doubt, the eagerness of successive administrations to propel the engine of growth in the country is being hampered by some contractors who have no respect for contract specifications and deadlines. They have, therefore. constituted themselves into stumbling blocks to activities of governments and their agencies in the development process of this country. ( Continues below..... )

Photo Above: Map of Nigeria's Niger Delta Region showing Port Harcourt

This unfortunate situation is also contributing to the underdevelopment of critical flash-points like the Niger Delta region. Today, a lot of projects embarked upon by the three tiers of government and their agencies in the region are in comatose because of the nefarious activities of some self-serving contractors, who divert funds meant for projects to their pockets.

From all indications, a good number of these contractors lack discipline and the sense of patriotism, as well as professional skills required to execute contracts given to them. Greed and avarice motivate some of them; as they see their contracts as an opportunity to get their own share of the "national cake." Hence, they cut corners; use inferior materials and unqualified or inexperienced personnel and end up delivering shoddy jobs. They also take joy in displaying their ill-gotten wealth in an offensive manner by living ostentatious life.

Take the case of the Independent Power Projects initiated by the Obasanjo administration, and consider the shocking revelations that greeted members of the House Committee on Power and Steel when they toured the project sites. There were reports of contractors who had been paid billions of naira as mobilization fees but never bothered to reach the sites let alone starting work. Some of those who managed to get to the sites demonstrated a lackadaisical attitude in the execution of the projects. For instance, the committee was told that the Federal Government overpaid one of the contractors, Marubeni Nigeria Limited, by N224 million for the Calabar 561mw GT power station. In spite of this, Marubeni was said to have completed only 30 per cent of the civil works while the project was already eight months behind schedule.

The Obasanjo-led government spent a whopping $16billion on the energy sector between 1999 and 2007, with little or no improvement in power supply. The Ndidi Elumelu-led House Committee discovered sharp disparities in the level of work done by contractors and the payment made to them by the government. At long last, some members of the committee were accused of being sucked into the cesspool of corruption, thereby rendering useless the effort of the House to re-activate the ailing power sector. ( Continues below….. )

Photo Above: President Goodluck Jonathan of Nigeria

Sometimes, it would appear that the government fails to thoroughly screen contractors to ascertain their suitability and capability to execute projects awarded to them. As it is the practice world-wide, governments and their agencies should also determine whether contractors possess the requisite qualifications, have the relevant experience, manpower, equipment and monetary resources to successfully execute projects. And whether they also pass integrity and reliability tests, which many Nigerian contractors would fail woefully. Many contractors without the above qualifications win big jobs by short-changing the system which unfortunately disregards due process for selfish reasons.

Again, it should be made clear to all contractors at the outset that project abandonment would lead to permanent exclusion from bidding for future contracts, in addition to their refund of mobilization fees with appropriate interest. We seem to have a situation where a contractor could easily abandon a project and just walk away without serious repercussions. The Minister of Information, Professor Dora Akunyili, was quoted recently as saying that henceforth, non-performing contractors would be blacklisted. One wonders why that has not been the practice over the years. If there are no strict sanctions, contractors and their official collaborators would continue to be the clog in the country’s march to sustainable development.

The negative attitude of the contractors, which may have been a carry-over from the long years of military dictatorship, when there was abominable permissiveness in the country, cannot be allowed to continue. It is a challenge which must be confronted resolutely to pave way for the rapid development of our nation. One of the development agencies that is making appreciable efforts to whip erring contractors into line, is the Niger Delta Development Commission, NDDC. The Managing Director of the commission, Mr. Chibuzor Ugwoha, made it clear to consultants and contractors working for the commission that nothing short of the best would do. He satd: “A poorly executed contract or project is wastage of scarce resources,” adding that it was counter-productive to developmental efforts. He said that the commission would no longer accept poorly executed projects and warned that contractors and consultants involved in such projects would be sanctioned.

Giving teeth to Ugwoha’s warning, the NDDC Executive Director, Projects, Arc. Esoetok Ikpong Etteh, recently came down hard on contractors handling four different road projects of over 98 kilometres in Ohaji Egbema and Oguta Local Government Areas of Imo State. At one of the road construction sites, where the contractor was apparently cutting corners, he ordered: “Stop work until you have done the right thing.”

He said the commission would hold consultants responsible for any shoddy job by contractors and directed all consultants attached to the various road projects to move to site for effective supervision and monitoring of the contractors to ensure that jobs are executed to specifications. Indeed, that is how it should be in all aspects of our national life, if we are to realise our development dreams as a nation. The National Assembly can contribute immensely in this area by taking its oversight functions more seriously. It must stop the situation where due process in contract awards seems to be observed more in the breach through all kinds of manipulations.

Mr. Ifeatu Agbu ( ifeatuagbu@yahoo.com ) writes from Port Harcourt, Nigeria.

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