N34.9 Billion Oloibiri Contract Scandal : Protests as BPP Yanks off 7 Companies After Passing ‘Due Process Test’



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Some contractors that were shortchanged after passing through the due process for the award of the N33.949 billion contract for the building and construction of an Oil and Gas Museum in Oloibiri, Bayelsa state have threatened to Petition President Goodluck Jonathan and the National Assembly over allegations that the companies that were awarded the contracts are fronts of the Executive Secretary of the Petroleum Technology Development Fund (PTDF) who never went through the due process.

Crisis started when the BPP in a fresh letter dated September 11 2012 signed by the Director General of the BPP, Engr. Emeka Eze discarded the earlier contractors -that had passed the Due Process and had been  short listed -and curiously  came up with a fresh list of companies that did not undergo the due process screening by the BPP.

BPP had in several letters dated July 9 2012, July 12 302012 and July 24 2012 shortlisted seven companies that have passed the Due Process. The seven companies in the oil and gas sector that bided and won the contract for the construction and building of the Oloibiri Oil and Gas Museum are Beks Kimse Ltd, Megastar Construction and Technical Co. Ltd, Sajook Nigeria Ltd, Kinetic Electromechanic Nig. Ltd, Unipad Nigeria Ltd, Meson Investment Ltd and Commerce Services for a contract fee of 33.949, 076952.95.

But surprisingly in the new letter of September 11, 2012 BPP rejected the companies that passed the Due Process and came out entirely with the companies that did not pass the Due Processes in July. Surprisingly also, BPP increased the contract fee from N33.949 to N34.062 Billion, an additional N1.352 Billion.

Incidentally, the new companies that did not originally undergo Due Process Screening were owned by one person that owns the Megastar Construction and Technical Company, Mercury Engineering ltd and Kinetic Electro Mechanical Ltd.

The contractors who were cheated by the exclusion of their companies are querying the rationale for the inclusion of companies that did not undergo the Due Process and what circumstance that made their companies to be included.

The Bureau for Public Procurement (BPP) and the Petroleum Technology Development Fund (PTDF) were in contest over the companies that would execute the contract approved for the building and construction of an Oil and Gas Museum to be located at the old oil city in Oloibiri, Bayelsa state.

BPP had earlier granted Due Process certificates to companies that passed the process, but the PTDF is insisting that waivers be given to companies that did not pass the due process, to which the BPP out-rightly rejected.

BPP in a letter dated July 9 2012 and signed by the Director General, Engr. Emeka Ezeh approved a due process certificate for the award of contracts for seven companies that have passed the due process certification for the award of contract for the following areas for the Oil and Gas Museum; Research Centre, International Conference Centre, Sand Filling and Civil Works, External Maintenance, External Electrical Works, Site Clearance, Geotechnical Survey and Fencing.

The seven companies in the oil and gas sector that bided and won the contract for the construction and building of the Oloibiri Oil and Gas Museum are Beks Kimse Ltd, Megastar Construction and Technical Co. Ltd, Sajook Nigeria Ltd, Kinetic Electromechanic Nig. Ltd, Unipad Nigeria Ltd, Meson Investment Ltd and Commerce Services for a contract fee of 33.949, 076952.95. The companies that passed the Due Process certification include

But the PTDF fired back in a letter dated July 10 2012 rejecting the companies that have passed the Due Process Certifications for the Oil and Gas Museum in Oloibiri.

In its letter, PTDF recommended the following companies to perform the contract of the oil and gas museum contract at an increased contract fee of N36, 315,019,032 to seven companies preferred by the fund. The companies are Messers Z Cubes, Messers Meson Investment ltd, Messers Mercury Engineering and Messers Gabezi Nigeria Ltd.

But in rejecting the PTDF letter again, the Director General of BPP, Emeka Ezeh in another letter dated July 24 2012 titled “Due Process Review Report on Contract for the Establishment of Oil and Gas Research Centre and Museum Oloibiri, Bayelsa state by PTDF”, said, “the Bureau wishes to reiterate her earlier decision that, Due Process certificate of No Objection Cannot be granted for the award of the contracts for the establishment of Oil and Gas Research Centre and Museum, Oloibiri, Bayelsa state in favour of the under listed contractors as follows: Mercury Engineering Ltd, Gabezi Nigeria Ltd, Kinetic Electromechanic Ltd and Z Cubes Nigeria Ltd”

The letter from BPP to PTDF further said, “The Due Process certificate of No Objection, Ref. No. BPP/S.1/Vol.X/12/063 dated July 9 2012 earlier granted to the PTDF for contracts for the establishment of Oil and Gas Research Centre and Museum, Oloibiri, Bayelsa state in the favour of the under listed contractors are still valid of processing to the Federal Executive Council”.

BPP listed the companies to” Beks Kimse Ltd, Megastar Construction and Technical Co. Ltd, Sajook Nigeria Ltd, Kinetic Electromechanic Nig. Ltd, Unipad Nigeria Ltd, Meson Investment Ltd and Commerce Services for a contract fee of 33.949, 076952.95”.

However the BPP had earlier pruned the contract sum from N33,949,019,076,952,95 curiously in a letter to the Executive Secretary of the PTDF dated September 11th reviewed the contract sum up to N34,962,631,734.69 and went further to approve companies that it had hitherto rejected which according to one of the contractors shows that money has changed hands.

 


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