Nigeria: Two Senators, Five Monarchs Named in 10.5 Billion Naira Grains Scandal
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Daily Champion (Lagos)
18 July 2008
Posted to the web 18 July 2008
Cosmas Ekpunobi
Abuja
Two senators, five prominent traditional rulers in the north and others were yesterday named in an alleged multi billion naira grain contract scandal.
The startling disclosure came as Senate probe panel on food crisis queried the minister of state for agriculture Mr Demola Seriki, over the spending of N10. 5 billion approved by the National Economic Council (NEC) to boost local rice production
The panel observed yesterday that the special fund was not captured in any of budgetary provisions for the ministry
But the minister in a presentation to the panel yesterday disclosed how two serving senators and prominent monarchs in the north hijacked the distribution of grains for their restive states this year.
The said persons were alleged to have obtained the contract for the distribution of grains to the states without due process.
The contract for the grains was not advertised nor was due process certificate issued.
Permanent secretary ministry of agriculture, Prof Afolabi in his testimony, admitted that the ministry only used its discretionary power to select those to be used in the distribution of the grains, adding that advertising for the job would lead to artificial increase in the price of the said grains.
He however said that the ministry has introduced a new policy called Guarantee Quality Price (GMP) to boost both the farmers and the consumers from the hands of middlemen.
The document for the distribution of the vital grains show that senators Adamu Talba and Ibrahim Idah took delivery of 120 metric tones of grains each from the ministry this year.
Other beneficiaries are the Emirs of Biu who got 60 metric tones, his Lafia, Nupe and Daura counterparts, got 120 metric tone each.
Former president of the Nigeria Manufacturers Association MAN Hassan Adamu got 120 metric tones while the Anglican church Abuja and the Arch. Bishop of Methodist Abuja got 60 tone respectively.
But the chairman of the committee, Idris Umar, and other members of the panel observed yesterday that using the said persons in the distribution of the grains without due process was illegal.
The panel alleged that such arrangements could be responsible for the shortage of the grains, adding that reports across the nation show that most of the grains never get to the people.
The panel specifically queried on the alleged diversion of grains by a cartel to the detriment of genuine end users.
The N10.5 billion is part of the revenue realized from levies collected from imported rice from 1999 to 2008.
Members of the Senate ad hoc committee on food crisis in the country at yesterday's sitting maintained that the ministry erred in spending the money without appropriation by the national assembly and rejected explanations from Seriki that the spending is based on Presidential approval.
Seriki told the Senator Idris Umar led committee that the money is accumulated revenue from levies on imported rice, which he said the ministry received approval from the President to directly spend on strategic procurement, storage and distribution of grains to ensure even availability across the country.
The minister however could not give detailed explanation to the reasons behind the poor distribution system, which results in the diversion of products from the reach of genuine end users.
However, rejecting the explanations on the fund, Senator Umar insisted that it amounted to extra judicial spending which he said cannot be tolerated under the present administration.
According to him, "there is no law that authorize you to spend money without approval from the National Assembly. We see this as extra judicial spending which should have ended with the Obasanjo administration. This should have stopped under President Umaru Yar'Adua whose administration preaches rule of law. You still continue you cannot defend this spending".
On the violation of due process in the strategic grain purchase for storage and distribution, Umar said the ministry must correct all anomalies in its bidding process to ensure compliance with the provisions of the public procurement act.
He said the current practice in the ministry, which does not allow for open bidding is in violation of the procurement law.
However explaining, Professor Oledabo Afolabi, permanent secretary in the ministry said the ministry adopted the secret procurement system to guide against price hike by farmers.
He urged that the procurement act be reviewed to enable the ministry maintain silent buying which he said helps in keeping prices of grains low during glut period to push down prices during scarcity.
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Copyright © 2008 Daily Champion. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here.
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