The Federal Government has saved a total of N530bn from contracts as a result of its insistence on due process, the Director-General, Bureau for Public Procurement, Mr. Emeka Eze, has said.
Speaking to State House correspondents after meeting with Vice-President Namadi Sambo, Eze said the amount was saved through various direct interventions carried out by the BPP.
He noted that the money would have been pocketed by the contractors.
The BPP boss said, “If there was no due process, this money would have been lost.
“We decide on what is fair to both the government and the contractors; if we did not do a proper check on all contracts and ensure that claims are properly verified, this money would have entered somebody’s pocket.”
Giving a breakdown of the amount, Eze said, “Up untill now, we have N420bn added to another N110bn for this year. So, we are talking about N530bn saved through our interventions.”
He urged heads of government institutions to apply prudence and honesty in the management of public funds.
Eze further said the government would implement more stringent measures in order to check fraud in the award of contracts in 2014.
Speaking on the implementation of the 2013 budget, he said that most ministries had concluded their procurement processes.
Eze blamed the high cost of executing public contracts in the country on insecurity and the challenges in the power sector.
“The cost of power and the extra security at the sites also forms part of the costs that affect the cost of doing jobs in Nigeria. Even our closest neighbour, Ghana, does not have to worry about these,” he said.
FG saves N530bn from contracts – BPP boss by ngcareers