The Network for the Actualization of Social Growth and Viable Development (NEFGAD), a public procurement advocacy group, has cautioned President Bola Tinubu against amending the Public Procurement Act of 2007, citing concerns that it could create vulnerabilities in the nation’s treasury.
The group’s warning comes as the President has ordered a comprehensive review of the Public Procurement Act to align project costs with budget heads and avoid augmentations after contract awards.
In a statement on Friday, signed by its Head of Office, Mr. Akingunola Omoniyi, NEFGAD warned that the proposed amendments could be exploited by corrupt elements to siphon funds from the treasury.
The group alleged that some individuals with ulterior motives are pushing for the amendments to perpetuate their illicit financial transactions.
“Intelligence at our disposal shows that the president took that position innocently out of advice from some people who are hell-bent at wrecking irreparable havoc on the country’s treasury,” NEFGAD said in the statement.
According to NEFGAD, the current Act provides a structured and transparent framework for public projects.
Mr Akingunola stated that, “section 18 c, d and e of the Public Procurement Act 2007 provide a structured and transparent framework that helps to prepare analysis of cost implication for proposed public projects for accountability and fairness in the allocation of public funds.
“The Act sufficiently imposed stringent guidelines on projects costing against undue variations; this is one of the core mandates of the Public Procurement Act serving as a safeguard against mismanagement and corruption.
“Hence, taking away this critical organ will definitely open the door to corrupt elements for arbitrary adjustments and excessive cost overruns, which would undermine the integrity of public procurement processes by delivering more money into private pockets through endless and frivolous augmentation.”
Instead of amending the Act, NEFGAD recommended that the government focus on enforcing strict regulations, providing additional training to procurement officials, and ensuring strong oversight mechanisms to prevent corruption.