NASC Faces N6.9 Billion Refund Order Over Contract Irregularities
A damning audit report has exposed serious financial misconduct at the National Assembly Service Commission (NASC), revealing that the commission must refund N6.93 billion for contract inflation and unauthorized payments.
The 2022 Auditor General of the Federation's report, which examined non-compliance and internal control weaknesses across ministries, departments and agencies (MDAs), uncovered that the NASC paid N11.65 billion to a construction company on August 11, 2020 for building the National Assembly Service Commission office complex with a 24-month completion timeline.
Unauthorized Contract Review Exposed
Auditors discovered that on November 29, 2023, the commission approved an upward contract review of N6.93 billion without obtaining necessary approvals. This massive increase represented more than 50 per cent of the original contract sum and was supposedly for converting a roof garden into office space.
The report highlighted that this contract variation violated established government procurement rules. According to Paragraph 2 of the Establishment Circular with Ref. no. SGF/OP/I/S.3/VIII/124, dated August 25, 2009, all contracts requiring variations must be submitted to the Bureau of Public Procurement (BPE) for review and issuance of a due process certificate of "no objection" before approval by the appropriate tenders board.
Missing Documentation Raises Red Flags
The audit investigation revealed alarming gaps in documentation and due process. No bill of quantity for the upward review was presented for audit examination, and the bill of quantity for the initial N11.65 billion contract was not priced.
Critical procurement documents that were missing include:
- The Commission's needs assessment for the contract award
- Newspaper advertisements and bidding process records
- Contract agreement and bidders' quotations
- Minutes of tender board meetings
- Federal Executive Council (FEC) approval
- Bureau of Public Procurement's certificate of no objection
The report attributed these serious anomalies to weaknesses in the internal control system at the National Assembly Service Commission, raising concerns about financial management and accountability within the government agency.
This development comes as Nigeria continues to battle corruption in public service and emphasizes the need for stronger oversight mechanisms in government contracting processes.
