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FG blacklists Siemens, revokes its contract

Posted by By LUCKY NWANKWERE, Abuja on 2007/12/07 | Views: 299 |

FG blacklists Siemens, revokes its contract


The Federal Government has blacklisted Siemens Nigeria Limited, which is at the centre of the bribery scandal still rocking the country with the cancellation on Wednesday of a N128.4 million contract recently won by the German firm.

The Federal Government has blacklisted Siemens Nigeria Limited, which is at the centre of the bribery scandal still rocking the country with the cancellation on Wednesday of a N128.4 million contract recently won by the German firm.

The Federal Executive Council, which met in Abuja under the chairmanship of President Umaru Yar’Adua, ruled that the firm was not worthy of consideration for fresh contracts in the country in the face of the current scandal, which had dented the country’s image abroad.

The Minister of Information and Communications, Mr. John Odey, who briefed State House correspondents on the outcome of the meeting, said the cancelled contract was for the supply of 14 indoor panels, complete with circuit breakers awarded to the firm for the improvement of power transmission in the country.

He said government would not enter into any further dealings with Siemens under the current situation until the on-going investigation into the bribery allegation had been concluded and the firm exonerated.
Odey said: “The Federal Executive Council (FEC) considered a memorandum from the president for the improvement of power transmission and a bid for the supplies of transmission maintenance equipment which Siemens Nigeria Ltd participated and won. FEC cancelled the bid of Siemens Nigeria Ltd because of the current investigation against the company relating to corrupt practices, which are at variance with the laws, and norms of this administration.

“The Federal Government places high premium on transparency and strong emphasis on zero tolerance for corruption. You will recall that this company is undergoing investigation in Nigeria and also in Germany for corrupt practices and as a result of that, we excluded them from the bid and FEC cancelled the bid they won until this investigation is concluded and they are exonerated or otherwise.”

The minister said the revoked Siemens contract would be represented to the Federal Executive Council by the relevant ministry according to the laid down procedure and would be open for bidding by other firms.

Asked if government would halt other jobs currently being executed by the firm, he said it would not be proper for government to continue to deal with Siemens by way of new contracts when issues bordering on corruption are still being investigated.

On what would happen to the comprehensive power project of government which was conceived with Siemens as one of the key participatory companies, he said the programme of government was not dependent on Siemens.

The council, according to the minister, also awarded various contracts totalling about N3.6 billion for the supply of transformers with accessories and spare parts, combustion liners and switch gears, among other item, for the improvement of power generation and transmission in the country.
The council also approved, for award, a contract for solar powered street lights in some parts of the federal capital territory, Abuja for N127.4 million, expected to be completed within a period of 20 weeks, he also disclosed.

Another major decision of the council was the approval for the building of 40-bed Zuma Cottage Hospital in Abuja complete with emergency unit and radiology and pharmacy departments to boost healthcare delivery within the territory for N276.8 million.

Odey, who was with his Minister of State, Alhaji Ibrahim Nakande at the briefing, also announced the council’s ratification of President Yar’Adua anticipatory approval of an International Development Association’s (IDA) $65 million credit facility for the execution of education projects in Kano, Kaduna and Kwara states.

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