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TETFUND descent into moral bankruptcy

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The recent allegations of embezzlement and fraudulent contracts against the management of the Tertiary Education Trust Fund will be a big dagger piercing through the hearts of higher education in Nigeria as it is the only agency that has been commended hitherto for helping to bridge the infrastructural gaps in our tertiary institutions across the country. As students strive for knowledge and educators labour to impart it, the rot festering within the corridors of the funding institution threatens to undermine their noble pursuits.

The Fund’s procurement process serves as fertile ground for corruption to flourish. It was recently alleged that in one instance, TETFund paid a whopping sum of N2.9bn to a questionable contractor for an unexecuted job and could not provide evidence for the execution of the contract, including the list of participants, links to the online portal for the training, and pictures or video clips of training sessions.

TETFund as an intervention agency was set up to provide supplementary support to all levels of public tertiary institutions with the main objective of using funding alongside project management for the rehabilitation, restoration and consolidation of tertiary education in Nigeria. It was established by the Act of 2011 after repealing the Education Tax Act Cap. E4, Laws of the Federation of Nigeria, 2004 and Education Tax Fund Act No. 17, 2003 and charged with the responsibility for imposing, managing and disbursing the tax to public tertiary institutions in Nigeria.

The main source of income available to the Fund is the two per cent Education Tax paid from the assessable profit of companies registered in Nigeria. The Federal Inland Revenue Services assesses and collects the tax on behalf of the Fund. However, beneath its lofty mandate lies a labyrinth of deceit, manipulation, and exploitation, perpetuated by those entrusted with its stewardship. It is a disturbing truth that corruption has woven its insidious tendrils deep within the very fabric of TETFund and exacerbated the already dire state of the nation’s academic infrastructure.

According to a report by Premium Times, five days before the end of the administration of former President Muhammadu Buhari, TETFund secretly awarded a contract worth over N3.8bn in disregard of the law. The said contract lacked any evidence of execution as investigations revealed further that the Fund paid the contractor a total sum of N2.9bn in four instalments between June 30 and November 17, 2023. Also in violation of the law establishing it, TETFund sourced the funding for the project from the 2023 annual direct disbursement budget domiciled in the agency for the use of about 251 beneficiary institutions, that is, public universities, polytechnics, and colleges of education across Nigeria.

The 2023 direct disbursement budget for these institutions which amounted to N15.2bn was for Information Communication and Technology intervention projects. But instead of releasing the funds to the institutions as mandated by law, TETFund allegedly deducted upfront 50 per cent of the funds from each of the institutions, amounting to a total of N7.6bn. It was also discovered that there was no evidence of bidding for the contract as demanded by Nigeria’s procurement law. Approval was neither sought nor given by the Federal Executive Council or even by the President.

“TETFund bypassed these mandatory requirements to award the contract tagged: ‘Capacity Building Certificate Course (communication, entrepreneurship, and productive skill development) inclusive of the Train-the-Trainer programme for 502 participants,” the report said. Further investigation also revealed that the contract was awarded to a company – Fides Et Ratio Academy. The company has no functional website and it is described by TETFund as “an IP licensee for Prof. Klaus Stierstorfer, a copyright owner and intellectual property right holder in all range of communication skills development courses marketed globally under Edunet Solutions.”

However, upon enquiry by Premium Times on the subject, the Bureau of Public Procurement, the body statutorily empowered to regulate contract awards for ministries, departments, and agencies of the government, said, “The contract is not found in its database.” If true, the contract award is, therefore, a violation of the Public Procurement Act 2007, which by virtue of its section 15(a), is applicable to “all procurement of goods, works and services carried out by the Federal Government of Nigeria and all procurement entities.” The law under section 15(c) only exempts the procurement of special goods, works and services involving national defence or national security.

Just recently, the Human and Environmental Development Agenda petitioned the Economic and Financial Crimes Commission over alleged graft in TETFund. The group urged the anti-graft agency to investigate alleged irregularities surrounding the contracts awarded by the agency. The petition, which was addressed to the EFCC chairman, Olanipekun Olukoyede, was signed by HEDA’s Chairman, Olanrewaju Suraju.

The politicisation of TETFund exacerbates its descent into moral bankruptcy as positions of influence within the organisation have become bargaining chips in the political game, with appointments based on loyalty rather than competence. Consequently, qualified individuals are sidelined in favour of cronies, eroding the institution’s effectiveness and perpetuating a culture of mediocrity. The impact of TETFund’s ethical erosion reverberates far beyond the confines of its offices. It strikes at the very foundation of Nigeria’s future, sabotaging the potential of an entire generation. As funds meant for education are squandered and opportunities are denied, the dreams of aspiring scholars are dashed against the rocks of corruption.

The exposure of TETFund’s unethical practices serves as a clarion call for accountability and reform. It is imperative that swift and decisive action be taken to cleanse the institution of its moral rot and restore faith in the power of education to uplift and transform society. Transparency must be enforced at every level, with stringent oversight mechanisms put in place to ensure that funds are allocated judiciously and utilised for the intended purpose. Those found guilty of corruption must face the full force of the law to serve as a deterrent to others who seek to exploit the system for personal gain. Furthermore, TETFund must reaffirm its commitment to meritocracy, appointing individuals of integrity and competence to lead the charge for change. Only through a concerted effort to purge itself of corruption and embrace ethical governance can TETFund reclaim its rightful place as a champion of education and a beacon of hope for Nigeria’s future.

Like their counterparts in private tertiary institutions, TETFund must develop as a matter of urgency a model for governance structures characterised by a higher degree of professionalism and accountability. The Fund requires a framework for strategic guidance and oversight that prioritises academic quality and institutional integrity and shuns the often-politicisation of its leadership where appointments are frequently influenced by partisan interests rather than meritocracy, leading to inefficiencies and mismanagement.

In the battle against corruption, there can be no bystanders. It is incumbent upon all stakeholders – government, academia, civil society, and the citizenry at large to unite in the fight to cleanse TETFund of its ethical impurities and pave the way for a brighter tomorrow. In the words of Nelson Mandela, “Education is the most powerful weapon which you can use to change the world.” Let us wield that weapon with courage and conviction, and together, we shall overcome.

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