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House of Reps

13.02.2025 Featured Reported Contract Fraud in Finance Ministry Prompts Reps’ Call for Investigation

Published 13th Feb, 2025

By Abimbola Abatta

The House of Representatives plans to investigate claims of fraudulent practices in the payment of contractors by officials of the Federal Ministry of Finance and the Office of the Accountant General of the Federation in the past three years.

FIJ understands that the House received reports of contractors being coerced into offering kickbacks or facing unjustifiable deductions from their payments as a condition for processing their invoices by officials in the finance ministry and the AGF’s office.

During Thursday’s plenary, monitored by FIJ, the motion seeking the investigation of these fraudulent acts was the eighth order of the day mentioned by Tajudeen Abbas, Speaker of the House of Representatives.

The motion on notice was sponsored by Paul Nnamchi, the lawmaker representing Enugu East, Isi-Uzo in Enugu State; Julius Ihonvbere representing Owan East/ Owan West in Edo and Aminu Sani Jaji representing Kaura-Namoda/Birnin Magaji, Zamfara.

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Ihonvbere, who moved the motion on Thursday, argued that corrupt practices in contractor payments often lead to the abandonment of critical infrastructure projects, loss of jobs and economic hardship contrary.

These consequences, according to the Edo lawmaker, clashed with the objectives of the present administration’s economic recovery efforts.

“The house knows that the 1999 Constitution of the Federal Republic of Nigeria (as Amended) mandates transparency, accountability and prudent management of public funds as fundamental principles of governance,” Ihonvbere said.

“Also, Section 15 Subsection 5 of the constitution provides that the state shall abolish all corrupt practices and abuse of power, which underscores the government’s obligation to prevent, investigate and punish maleficent practices, especially in public finance management.

“There are reports of contractors being coerced into offering kickbacks or facing unjustifiable deductions from their payments as a condition for processing their invoices by officials of the Federal Ministry of Finance.”

READ ALSO: Contractor Still Fighting for N36m Payment After Delivering Wheel Loaders to Obi’s Govt in 2008

The House agreed that the unrestrained continuation of these practices would discourage public investment and undermine faith in the government’s ability to uphold transparency and accountability.

On the part of the contractors, they will lose confidence in the government’s engagements, which can result in “slowed economic development and failed infrastructure projects nationwide”.

After Adedeji Stanley Olajide, the lawmaker representing the Ibadan North West/South West Federal Constituency, seconded the motion moved by Ihonvbere, the speaker referred the committee on finance for further legislative actions.

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Published 13th Feb, 2025

By Abimbola Abatta

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