Fresh Scandal Rocks Another Tinubu’s Minister over Payment of N9b to Microfinance Bank for Road Construction

A fresh controversy has broke up in President Bola Tinubu’s cabinet as another Minister, Dave Umahi has been fingered for authorizing the payment for roads construction to a micro-finance bank.

TowncrieNews gathered from Tracka, an arm of BudgIT that deals with issues of transparency in governance and spending, which revealed on Friday, January 26 that it has uncovered the payments of the series of funds amounting to N8.6bn to cover for road projects executed in different parts of the country.

According to Tracka, the payments violate the Procurement Act, calling on the Minister of Works, Dave Umahi to come forward to explain basis for the payments.

In a statement released by Ayomide Oladipo on Friday the transparency advocacy organisation said there must be explanations for the actions of the Minister.

The statement read: “Tracka … has uncovered a total of N9.3 billion paid by the Federal Ministry of Works to FIMS Microfinance Bank Ltd. between June and December 2023 for 62 projects, including the construction of road projects across the country, amongst others.

“Some of these projects, as revealed on the Govspend platform, include the payment of N1.4 billion in September 2023 for the construction of Yaba-Yangoje Road in the Federal Capital Territory; the payment of N1.2 billion in October 2023 for the rehabilitation of a 2km road from Oriawo-boroboro-oke-medina School of Science Road in Atiba, Oyo state; the payment of N1.2 billion in October 2023 for the rehabilitation of Kosobo-awe Junction Road in Oyo East LGA in Oyo state; and the payment of N1.2 billion between August and November 2023 for the rehabilitation of Ejule-otukpo Road in Benue State to mention a few,” the statement revealed

Tracka said according to the mission statement and the information on its website, FIMS Microfinance Bank Ltd. was incorporated on December 11, 2009, to conduct microfinance businesses/services with a certificate of incorporation number RC 858800.

The group said, “As a financial institution, the award of road construction contracts amongst others to this company is a violation of the Public Procurement Act 2007, specifically s. 16 (6)

(a) ©️. (i), and (iv) as stated, “All bidders in addition to requirements contained in any solicitation documents shall: (a) possess the necessary: (i) professional and technical qualifications to carry out particular procurements; (n) financial capability; (m) equipment and other relevant infrastructure; (iv) shall have adequate personnel to perform the obligations of the procurement contracts.

“We request that the Honourable Minister of Works. David Umahi, tenders an explanation to Nigerians on how these repeated violations and infractions occurred in his office.

“In addition, we call on the Bureau of Public Procurement to review the transactions for violating the Public Procurement Act 2007 and serve appropriate sanctions for breaches where identitied.