Senate Public Accounts Committee has summoned a former managing director of the Federal Mortgage Bank of Nigeria, Mallam Gimba Yau Kumo, to appear before it to explain the rationale behind the alleged irregular award of N3bn when he was at the helms of the affairs of the bank.
The Senate panel, while scrutinising the 2015-2018 report of the Auditor General for the Federation, took the decision following a query raised against the FMBN by the AuGF in the document.
The Chairman of SPAC, Senator Matthew Urhoghide, at the last sitting of the panel, said the Auditor General’s report revealed that the contract was awarded in four phases to a single contractor.
The query raised by the AuGF in the report read:
“Audit observed that a contract was awarded to a contractor in four phases at a total contract sum of N3,045,391,531.97.
“Audit however observed that the second, third and fourth phases of the contract were above the approval thresholds of the Bank.
“It was also observed, from the examination of payment documents, that the contractor was overpaid in the sum of N118,717,892.72 that resulted from irregular addition of 5 per cent Withholding Tax in the Bill of Quantity on each of the four phases of the contract.
“Audit further observed, from physical inspection of the site, that a provision of N 80, 000,000.00 was made and paid for the implementation of “Unified Access and Attendance System” but the device was not working according to specifications.
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