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FEC okays N630.1m for contract administration consultancy

The Federal Executive Council (FEC has approved the sum of N630,132,750 to engage consultants to streamline the contract administration in the nation’s various ministries, departments and agencies (MDAs). This was disclosed by the Attorney General of the Federation (AGF) and Minister of Justice, Mr. Abubakar Malami (SAN), who briefed journalists yesterday, after the weekly Council meeting chaired by President Muhammadu Buhari, at the Presidential Villa.

According to him, the consultants have been mandated to also digitalise the process of solicitors department in his ministry. He said: “By way of historical antecedents, we are all aware of key incidents that happened as it relates to contracts administration in Nigeria. “One of them that is fresh in our memory is the P&ID on account of which the Federal Government was by arbitrary award subjected to a liability of over $10 billion on account of deficiency in the contract which translated to a higher risk. “We are equally aware of the Global Steel contract relating to Ajaokuta. The defect subjected the Federal Government to a higher risk and stagnated our development towards industrialisation on account of the fact that for over two decades, Ajaokuta could not perform, arising from the litigation.

“We are equally aware of similar contract relating to Sunrise on account of which our dream to have Mambilla could not proceed on account of litigation thereto. “So, the Federal Government has been subjected to series of defective and higher risk contracts that exposed the country to not only litigation but enormous monetary damages which indeed affected our development as a nation. “So, a decision is taken as to how to address those deficiencies associated with contracts that exposed our nation to higher risk and damages. “This memo is intended to now bring about new development in contract administration by way of deployment of technology, building capacity and specialisation, developing a continuous checklist of the existing contracts.”

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