By Inalegwu Shaibu
The Senate Committee on Public Accounts, Tuesday, faulted the award of N87 million insurance contract by the National Coordinator of National Poverty Alleviation Programme, NAPEP, Dr. Moses Kpakol to two incompetent insurance brokers.
Chairman of the Committee, Senator Ahmed Lawan, at a public hearing with Dr. Kpakol at the National Assembly complex in Abuja observed that there were many irregularities in the award of contracts by NAPEP.
He said, â€œduring the audit examination of the accounting and other records maintained by the National Poverty Eradication Programme, it was observed that two insurance companies were paid the total sum of N87, 062, 816 on two payment vouchers all dated 28/6/07.
â€œThe purpose was to provide insurance cover for NAPEP project vehicles, buildings, electrical equipments, furniture and fixtures, computers, air conditioners and loans disbursed under farmersâ€™ empowerment programmes. Audit examinations of the relevant payment vouchers revealed tamong others:
â€œThere was no proper description of the quantity and locations of NAPEP items under the insurance cover. The manner and the method in which the two companies were selected are shrouded in secrecy as there was no competitive bidding as required by Extant Regulations.”