News
How NEMA DG, Maihaja Awarded Contracts To Non-Existing Companies
The director general of the National Emergency Management Agency (NEMA), Engineer Mustapha Yunusa Maihaja, has been breaching Public Procurement Act by awarding contracts to companies that do not meet legal requirements and non existing companies, the House of Representatives has discovered.
This disclosure was made at the resumed investigative public hearing organised by the committee on the violation of public trust in National Emergency Management Agency.
The lawmakers noted that documents before the committee which were made available to the director general in the hearing, clearly showed that majority of the companies approved by the agency to undergo contracts were in breach of the Procurement Act to the extent that one of the companies, Three Brothers, is not registered with the Corporate Affairs Commission.
They also discovered from documents presented to the committee by the National Pension Commission that most of the companies were defaulters in remittance of pension, defaulters in tax payment as submitted by the Federal Inland Revenue Service to the committee, and do not operate ITF.
Furthermore, the committee observed that the DG of NEMA had been exceeding his approval limit for contracts without due approval by the presidency.
Speaking in his defense, NEMA DG presented a Certificate of No Objection obtained from the Bureau Of Public Procurement (BPP) as proof that all due process procedures were followed before the contracts were awarded.
This, however, was rejected by members of the Committee who explained that there are documents that clearly show the breaches in question whose authenticity have not been contested, and therefore, the BPP must have cleared the contracts in error.
The lawmakers also expressed reservation over the exemption of the director general in the suspension of personnel of the agency over allegations of corruption.
They said it was puzzling that the director general, who was also listed among the list of people allegedly involved in corrupt activities and defrauding Nigerians, has been allowed to continue superintending over the affairs of the agency.
The committee noted that due to the absence of the suspended personnel, especially the director of Finance and accounts, certain information required by the House will not be available, and therefore, the DG must appear with them for tomorrow’s hearing.
Going further, they questioned the speed with which the affected staff were suspended based on a report purportedly emanating from the governing council of NEMA is questionable because the council was inaugurated on the 3rd of April, considered the report of the EFCC on corruption allegations on the same day and recommended the suspension of the director of Finance and Accounts; acting director, Special Duties; deputy director, Welfare; director, Disaster Risk; head of Special Air Operation Unit and the chief maintenance officer.
Out of all the suspended staff, the Finance and Accounts director was immediately replaced by the DG who requested the BPP to send a replacement. The replacement resumed the next day after the suspension.
Other areas which the committee made disclosures include the failure of the agency to respond swiftly to emergencies across the country even after receiving funds for relief materials for affected persons, the House of Representatives has discovered. It took a range of 6 months to one year for people and communities who were in emergency situations to get relief from NEMA, even in many cases where funds were readily available.
This followed the inability of Engineer Maihaja to explain why after receiving N1.6 billion from the federal government for emergency relief in July 2017 for flood victims, the agency failed to provide relief materials to affected people and areas until December, 2017, six months after the incidents took place in 16 states across the country, when it started distribution.
The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.
The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.
Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.
He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.
“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.
Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.
While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.
Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.
He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”
Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.
He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”
Dangote Petroleum Refinery has made headlines by announcing a further reduction in the price of diesel, dropping it from ₦1200 to ₦1000 naira per litre.
The refinery’s decision comes on the heels of its recent supply at a significantly reduced price of ₦1200 per litre, which was introduced three weeks ago, signifying a remarkable 30 per cent decrease from the previous market price of approximately ₦1600 per litre.
This substantial reduction in diesel prices at Dangote Petroleum Refinery is expected to reiterate positively throughout various sectors of the economy, potentially serving as a catalyst in alleviating the persistently high inflation rate in the country.
In a statement last week, Aliko Dangote, Africa’s wealthiest individual and the owner of the refinery, expressed his optimism regarding the potential impact of the price reduction on inflation in Nigeria.
“I believe that we are on the right track. I believe Nigerians have been patient, and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about ₦1900,” he remarked.
As anticipation builds around the implications of this move by Dangote Petroleum Refinery, stakeholders and consumers alike remain hopeful for the positive effects it could bring to the Nigerian economy in the coming months.
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