FCT Judicial Service Committee: N979 Million Contracts Shabbily Given By Its Management

Secrets Reporters

The administration of justice in the Federal Capital Territory has come under scrutiny following financial findings involving nearly ₦1 billion in contract irregularities recorded by the Federal Capital Territory Judicial Service Committee during the 2023 financial year.

The findings, contained in a review of the Committee’s financial records, identified six separate issues involving a combined ₦979,122,734.63 in contracts and payments. The findings covered contract awards, renovation works, contractor eligibility, payment documentation, and the structuring of contracts.

The largest finding involved ₦302,278,850.00 awarded to local manufacturers and assemblers who were not accredited for the goods they were contracted to supply. The finding raises a procurement compliance issue under Section 16 of the Public Procurement Act 2007, which sets out the fundamental principles governing public procurement, including transparent, equitable, and accountable procurement processes and compliance with applicable procurement requirements.

Similarly, ₦192,143,555.50 was identified in connection with irregularities in the award of contracts. Section 16 of the Public Procurement Act 2007 requires public procurement to be conducted in accordance with the Act and its regulations, based on principles of transparency, accountability, competition, economy and efficiency.

Additionally, ₦174,249,007.71 was linked specifically to irregularities in renovation contracts. The Public Procurement Act 2007 requires procuring entities to conduct procurement in conformity with its fundamental principles and applicable regulations, including transparent and accountable procurement procedures. 

Another ₦144,167,008.85 was reportedly awarded to inactive companies and paid without evidence of due diligence to establish whether the companies were operational. The Public Procurement Act 2007 provides for eligibility and procurement requirements applicable to contractors and service providers, while the Bureau of Public Procurement maintains a national database for categorising and classifying contractors and service providers.

Moreso, ₦112,601,138.57 in paid vouchers was not presented when the financial records were requested for examination. This is contrary to the documentation and payment-control requirements under Paragraphs 601, 603 and 609 of the Financial Regulations 2009, which require government payments to be supported by properly prepared vouchers and subjected to checking procedures. Regulation 611 also sets out conditions that must be satisfied before payment is made against a voucher.

Furthermore, ₦53,683,174.00 was identified as contracts that were split in a manner that circumvented the applicable procurement and approval thresholds. Section 58(4)(d) of the Public Procurement Act 2007 expressly identifies the splitting of tenders to evade monetary thresholds as an offence under the Act.

The Federal Capital Territory Judicial Service Committee is chaired by the Chief Judge of the FCT High Court, a position held during the period under review by Hon. Justice I.U. Bello. The Committee is responsible for the administration of the FCT judiciary, including the institutional processes through which its financial and procurement activities are conducted.