Posted by By OLWATOYOSI OGUNSEYE on
The Economic and Financial Crimes Commission (EFCC) is investigating a $26 million contract that could land top officials of the Ministry of Internal Affairs in big trouble, if allegations that they colluded with a private company to swindle the Federal Government through a contractor-financed agreement is proved to be true.
The Economic and Financial Crimes Commission (EFCC) is investigating a $26 million contract that could land top officials of the Ministry of Internal Affairs in big trouble, if allegations that they colluded with a private company to swindle the Federal Government through a contractor-financed agreement is proved to be true.
The agreement, for the production of Combined Expatriate Registration and Alien Cards (CERPAC), was reached by the Ministry in 1999 with a private company, while the value of the job to be done through contractor-financed pact amounted to $26 million.
Under the agreement, the company was to finance the project, operate it and recoup its cost and afterwards share profits with the Federal Government and the Nigerian Immigration Service (NIS).
However, a Nigerian, who is an expert in identification cards system, has cried foul, alleging that the whole project was conceived as a scam, and that the cost of implementing such a contract is nowhere near what was approved in the agreement.
As such, the Nigerian, Olusola Obasa, has petitioned the EFFC after his earlier petition to the Senate Committee on Internal Affairs to investigate the whole CERPAC agreement appeared to have led nowhere.
Obasa, in his petition to the EFCC described the contract as a fraud, saying: 'the company had no intention of performing the requirements needed to fulfill a contract of that magnitude. Also, the company had no knowledge or prior experience to execute the contract when it was awarded."
Obasa claimed that all the equipment and materials proposed to be supplied and installed for the project were non-existent and could not have been installed.
'I will also show that what it takes to produce a basic identity card, like the one used for CERPAC cannot be as costly as claimed," adding that it is evident the company approved the contract with intentions to defraud.
'It is quite obvious from the contract agreement that the Ministry of Internal Affairs did not use the services of any consultant. While the same ministry used a consultant for the National Identity Card project, the same cannot be said for the CERPAC project. The reason for this is quite obvious: Fraud," he said.
In a copy of the petition and signed contract agreement dated May 28, 1999 made available to Daily Sun, Obasa said the first nine items which were listed as equipment to be used at each location for the CERPAC programme were false and over-inflated.
For instance, he said: 'Item one which was listed as Trans Data and Image Capture Station whose maker was also listed as Global System Inc. (GSI USA) with a price tag of $34,000 is absolutely not in existence.
'There is no equipment called Trans Data and Image Capture Station. The company can claim that this represents a workstation that will capture images, but at a price of $34,000, it cannot be justified. A workstation that will do this job will not even cost N1,500. Furthermore, there is no company called Global System Inc. If there is, then the company should provide the address, website, the contact person in the company and provide brochures for this equipment.
'Same goes for the second equipment; Line Feeder System and Converter at a price of $16,500, whose maker was listed as GSI SA. There is no equipment anywhere in the world called a Line Feeder System Converter that is used in the production of identification documents. The third item which was Visual Storage and Data Input Recorder which they claimed was made by GSI is also non-existent and was quoted for $9,700.
'Twin Truck Microfilm Enhancer, which was the fourth item on the contract and whose maker was given as United Tech (USA) is false. It was priced at $21,000. There is no company called United Tech (USA).
'The fifth and sixth items, listed as Script Engraver and Script Transcript Visaliser whose maker was also given as United Tech. (USA) at a price of $7,000 and $11,000 respectively are non-existent.
'The seven item, Processor unit whose maker was listed as IBM Compatible (USA) at a price of $30,000 is false and non-existent. The eighth item, which was given as Printing Unit: Dry Overlap Capability on PVC Graphic is non-existent. It was priced at $27,000 and the maker as ALPS/MAGER. There is no such company. However, there is a company called ALPS. It is a billion dollar Japanese company that used to make printers among other products. The most expensive printer it used to make was the MD5000, which costs less than $5,000. The printer did not print on PVC but on paper substrates. ALPS has since discontinued making printers.
'There is also no equipment anywhere in the world called a Transcribing and On Line Data Recovery Unit which was listed as number nine at $38,000. The maker was claimed to be IBM Compatible which is false."
Obada further alleged that the company claimed that it would install the above equipment at a cost of $194,600 for each location making a total cost of $1,556,800 for eight issue locations and would also have a Gate Monitoring Systems at the four major points of entry.
'What is the specification of the Gate Monitoring System and what is its role in connection with CERPAC? This was not shown on the contract. The cost was not reflected. Has the Gate Monitoring System been installed and what is this system"?
In another list of major consumables for the CERPAC scheme as contained in the signed agreement with the Ministry of Internal Affairs, the petition claimed that the items were false and over-inflated.
Spokesman of the EFCC, Mr. Osita Nwaja, confirmed to Daily Sun that the commission received the petition, adding the investigations were still on.