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FG cancels tender process for oil, gas shipment

By on December 25, 2015

The Federal Government said on Wednesday that it had cancelled the tendering process for the engagement of pre-shipment inspection and monitoring agents for the oil and gas sector.

The cancellation was confirmed by the Minister of Finance, Mrs. Kemi Adeosun, in a statement issued by the Director, Press, Federal Ministry of Finance, Mr. Marshal Gundu.

The minister said the cancellation of the exercise was necessitated by series of complaints as well as petitions alleging that the process had been marred by irregularities.

President Muhammadu Buhari had in June this year mandated the Finance ministry under the immediate past Permanent Secretary, Mrs. Anastacia Nwaobia, to commence the process of engaging pre-shipment inspection and monitoring agents.

Following the approval of the Bureau of Public Procurement, a selective tendering process was initiated under which 65 companies were selected and invited to bid.

However, the statement explained that since the inception of the process, numerous complaints had been sent to the Finance ministry suggesting that the method by which the 65 companies were selected was faulty and lacked transparency.

The statement read in part, “The Minister of Finance, Mrs. Kemi Adeosun, has ordered the immediate cancellation of the tendering process for the engagement of pre-shipment inspection and monitoring agents for oil and gas. The decision was necessitated by the receipt of numerous complaints and a petition regarding alleged irregularities in the process.

“However, since the inception of the process, numerous complaints were sent to the Federal Ministry of Finance, suggesting that the method by which the 65 companies were selected was faulty and lacked transparency.”

It added, “Additionally, a formal petition was received by the Bureau of Public Procurement making specific allegations about the process.

“Under public procurement rules, the receipt of a formal petition requires a suspension of the tendering process to allow an investigation. However, in this instance, the minister has taken the decision to cancel.”

The statement also quoted the minister to have said that rather than suspending the process, the huge volume of complaints had provided enough grounds to cancel the tendering exercise.

Adeosun said, “The sheer volume of complaints and the wide range of sources they emanated from had raised a sufficient level of concern around the process to warrant a full cancellation rather than a suspension.

“This administration stands for transparency and accountability, and it is, therefore, important that all procurement and tendering exercises must be undertaken in accordance with best practices.”

 

[Punch]