The federal government has ordered the immediate cancellation of the tendering process for the engagement of pre-shipment inspection and monitoring agents for oil and gas.
The decision was necessitated by the receipt of numerous complaints and a petition regarding alleged irregularities in the process.
In June 2015, President Muhammadu Buhari mandated the Federal Ministry of Finance under the then permanent secretary, Mrs Anastasia Nwoabia, to commence the process of engaging pre-shipment inspection and monitoring agents. Upon the approval of the Bureau of Public Procurement (BPP), a selective tendering process was initiated under which 65 companies were selected and invited to bid.
However, since the inception of the process, numerous complaints have been sent to the Federal Ministry of Finance, suggesting that the method of selecting the 65 companies was faulty and lacked transparency.
Additionally, a formal petition was received by the BPP making specific allegations about the process. Under public procurement rules, the receipt of a formal petition requires a suspension of the tendering process to allow an investigation. However, in this instance, the minister has taken the decision to cancel.
Minister of finance, Mrs Kemi Adeosun, said, “The sheer volume of complaints and the wide range of sources they emanated from had raised a sufficient level of concern around the process to warrant a full cancellation rather than a suspension.
“This administration stands for transparency and accountability and it is therefore important that all procurement and tendering exercises must be undertaken in accordance with best practices.”
Pre-shipment inspection of oil and gas exports commenced in 2015 and requires a Clean Certificate of Inspection to be issued, confirming the volume and the value of all exports. The programme is believed to have enhanced government revenues by preventing mis-statement and understatement by exporters.
The Ministry of Finance stated that it was in consultation with the BPP to commence a new process and to ensure interim arrangements for service provision. The ministry further stated that details of the new process would be communicated shortly
The decision was necessitated by the receipt of numerous complaints and a petition regarding alleged irregularities in the process.
In June 2015, President Muhammadu Buhari mandated the Federal Ministry of Finance under the then permanent secretary, Mrs Anastasia Nwoabia, to commence the process of engaging pre-shipment inspection and monitoring agents. Upon the approval of the Bureau of Public Procurement (BPP), a selective tendering process was initiated under which 65 companies were selected and invited to bid.
However, since the inception of the process, numerous complaints have been sent to the Federal Ministry of Finance, suggesting that the method of selecting the 65 companies was faulty and lacked transparency.
Additionally, a formal petition was received by the BPP making specific allegations about the process. Under public procurement rules, the receipt of a formal petition requires a suspension of the tendering process to allow an investigation. However, in this instance, the minister has taken the decision to cancel.
Minister of finance, Mrs Kemi Adeosun, said, “The sheer volume of complaints and the wide range of sources they emanated from had raised a sufficient level of concern around the process to warrant a full cancellation rather than a suspension.
“This administration stands for transparency and accountability and it is therefore important that all procurement and tendering exercises must be undertaken in accordance with best practices.”
Pre-shipment inspection of oil and gas exports commenced in 2015 and requires a Clean Certificate of Inspection to be issued, confirming the volume and the value of all exports. The programme is believed to have enhanced government revenues by preventing mis-statement and understatement by exporters.
The Ministry of Finance stated that it was in consultation with the BPP to commence a new process and to ensure interim arrangements for service provision. The ministry further stated that details of the new process would be communicated shortly
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