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Reps uncover NIGCOMSAT’s illegally awarded 500m contracts

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The House of Representatives yesterday unearthed how the management of Nigerian Communications Satellite (NIGCOMSAT) breached the Public Procurement Act (PPA) for three years, awarding insurance contracts worth over $500 million.

The Adekunle Akinlade-led House adhoc committee probing insurance companies’ pay out to ministries, departments and agencies consequently invited the former managing director of NIGCOMSAT, Alhaji Ahmed Rufai, and all former directors of finance to appear before it Monday next week.

Akinlade gave the directive after members of his committee grilled the managing director of NIGCOMSAT, Bimbo Alale, for over an hour at the National Assembly Complex, Abuja.

He asked both Alale and Rufai to provide all documents covering every transaction from 2013 till date when they appear.He said it was discovered that the contracts were not advertised as required by the PPA and were awarded to unlicensed insurance brokers.

The breakdown of the amount shows that in 2013, NIGCOMSAT expended $188,883,845, in 2014 $168,135,252 and in 2015, $143,775,084 on insurance without advertising the jobs. The grand total was $500,794,181.

Meanwhile, a Federal High Court sitting in Abuja yesterday ordered the immediate past director general, National Broadcasting Commission, Emeka Mba, to report at the office of the Economic and Financial Crimes Commission (EFCC) in Abuja for an amended criminal charge sheet to be served on him and his co-defendants.


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