Procurement fraud accounts for 70% of total corruption in public sector

-PRADIN Report

A report by a member of the Procurement Observation and Advocacy Initiative (PRADIN) has alleged that 70% of procurement fraud accounts for70 percent of total corruption in the public sector.

This is even as PRADIN called on the federal government to appoint and inaugurate the National Council for Public Procurement as enshrined in Part 1, Section of the PPA 2007.

PRADIN identified challenges confronting the administration of effective and efficient procurement process in Nigeria noting that the challenges are largely responsible for the high level of corruption. and the unproductive nature of the BPP

Mohammed Bougei Attah, National Coordinator of PRADIN during an interactive session between Civil Society Organisations and the Media in Abuja recalled that study by a member of NGO Network in September 2010 shows that procurement Corruption (PC-as its now a Phenomenon) alone accounts for over 70% of total corruption in the public sector.

“Despite the huge investments and resources in the fight against corruption – human and materials- over the years, the wastage continues and corruption, particularly in high places is on the increase. ”

“As a fact, procurement Corruption is not only fighting back, it appears to be winning the way. It is believed that over $16bn of our Commonwealth has gone into wastages. And this is occasioned by corruption through abandoned projects” he said

According to Attah the media and CSO Parley is organized as an annual event to support the government’s efforts in the fight against corruption by way of providing insights into the challenges and way forward as it relates to procurement management and administration in Nigeria.

Attah recalled a statement credited to the Chairman of the Economic and Financial Crimes Commission, EFCC, Ola Olukayode during a recent visit to the Commission by immediate past Bureau of Public Procurement, BPP,. Mamman Ahmadu that “The Public Procurement Act is not helping the Commission in the fight against corruption”.

Attah summarized challenges facing the BPP into: lack of capacity and the disobedience to the rule of law, saying they include “Failure on the part of the Federal Government to constitute and inaugurate the National Council for Public Procurement as enshrined in Part 1, Section of the PPA 2007, Lack of capacity by the erstwhile appointees that headed procurement and supply chain entities in Nigeria for the last 13 years, and The failure and inability of the BPP to conduct Procurement Audit and submit the Report to the National Assembly bi-annually as required by law in Section 5(p) of the PPA 2007

He recalled that “The extant provisions in the PPA 2007, provides for the establishment of National Council for Public Procurement NCPP was passed in 2007 by the National Assembly, 13 years ago, but the previous Presidents, pursuant to Sections 5(1), 148(1) 4(2) and 4(3) as well as S.171 of the 1999 Constitution failed to inaugurate the Council till date.”

He also noted that “By virtue of the provisions of section 5(1) and 148(1) of the 1999 Constitution as well as the Finance (Management Control) Act of 1958, only a National Council on Public Procurement with the Minister of Finance as Chairman can consider, approve and amend the Monetary and Prior Review thresholds for the application of the provisions of Public Procurement Act 2007 by procuring entitles. So, by implications, the threshold presently in use without Council’s approval is illegal and not correct”

He maintained that the director general of BPP recognized by law is expected to emerge after the Council is put in place to serve as the Secretary of the Council and not before.

Procurement fraud accounts for 70% of total corruption in public sector