The Niger Delta Ministry in a clear example of contract inflation and racketeering has spent N19 million to construct a single borehole in Cross Rivers State.
Under the deal, the Niger Delta Ministry says it spent N19 million (N19,002,929.25) to construct a single borehole at Abakpa Igbo Wanibolor community in Ogoja/Yala Federal Constituency of Cross River State. An amount that has been published on www.govspend.ng, a budgit platform that discloses government spending on federal projects.
Drilling a single borehole in Cross River averages below N1.4 million. A hydrology firm told MAWA Foundation that amount should cover drilling and casing, installation of a solar-powered submersible pump, steel tower for the tanks, tanks, pipes, joints & suckers, installation, and labour.
The contract was awarded to Digma Integrated Services Limited, a company registered on August 23, 2005, with operational headquarters at No.2 Odutemowo Street off Redeem Avenue Agility, Lagos.
Worse still, a visit to the Corporate Affairs Commission (CAC) website shows that Digma Integrated Services Limited, a company that carried out the boreholes’ construction has since been declared inactive by the CAC.
Declaring a company inactive by the CAC, shows that it is a tax-evading company and ought not to have gotten a contract from government institutions for not paying tax.
However, how, Digma Integrated Services Limited, a tax invading company got a multi-million-naira contract in Nigeria calls for an investigation as that is a total violation of the country’s procurement Act.
MAWA Foundation could not immediately reach out to the Niger Delta Ministry for a response.
Please note: This is not a real picture, used for an illustration.