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N774.6m Vehicles Procurement Scandal Rocks Dissolved National Steel Council Board

… As investigation uncovers board still functions in aberration
… Expert urges Tinubu to constitute a new board

 

The National Steel Council (NSC) is embroiled in a multimillion-naira procurement scandal involving the immediate past board of the agency as the federal government is urged to investigate allegations of scam.

The board was dissolved by the President Bola Tinubu-led administration but continued to parade itself as legitimate hence causing problems; The board had procured 6 units of Utility vehicles from Elizade Motors without budgetary provision from the Federal Government. According to a letter addressed to its Chairman, but made attention of Mr. Seun Oyefeso, who reportedly was the Chairman, Finance and General Purpose Committe of the Council.

A document exclusively obtained by Aljazirah Nigeria exposed the purchase of 6 units of Jetour brand of vehicles at the cost of N774,660,000 (Seven Hundred and Seventy-Four Million, Six Hundred And Sixty Naira only) which was supplied to the dissolved National Steel Council board members in their office on February 2nd 2024. This was eight month past the dissolution of the Board by Mr. President.

Elizade Nigeria Limited in a letter signed by its Executive Director, Ademola Phillip-Adewunmi demanded for return of the vehicles and claimed a breach of contract, following the Board’s failure to pay for the vehicles it purchased within the agreed 30 days.

The Office of the Council’s administration alleged that the board approved for itself financial allocations exceeding the threshold stipulated by the Bureau for Public Enterprises (BPP).

The board further exceeded its mandate by making financial decisions without budgetary provisions or due process, such as procuring vehicles, appointing legal counsel/consultants, and renting offices without proper allocation or adherence to financial regulations.

Documents also showed that the board allegedly rented its own offices without budgetary allocation.

Besides the infractions last NSC board was engrossed in, further findings internally show that the Council board is said to be still functional, despite the dissolution of all boards all federal government parastatals, agencies, institutions, and government-owned companies by President Bola Tinubu, except those listed on the Third Schedule, Part 1 Section 153(1) of the 1999 Constitution as amended. This puts the activities of the Board in breach of the Presidential order as it has continued operating illegally, until the Senate, and the House of Representatives committee on Steel Development, through motions asked that the council should be dissolved.

When our reporter reached out to the Executive Secretary for comment on the matter he refused to make any comment but referred our reporter to the ministry where the report was made by Elizade Nigeria Limited.

We also reached out to the ‘dissolved’ council for a reaction to the issues in contention, they explained that procurement of office furniture, fittings, official vehicles, and the lease of office property for the National Steel Council all pass through the normal due process of tender board and as well as Bureau of public procurement for approval.

Interacting with staff of the agency who did not want their name on print, AljazirahNigeria deduced that the continued interference by the dissolved board of the National Steel Council in the running of the agency has now become a great disservice. The staff expressed worry that persistent wrangling between the board leadership and administrators was stalling progress the agency should have made.

Speaking to a public affairs analyst, Okey Isaac, he warned that the National Steel Council is too important in revitalizing Nigeria’s economy and hence needed not to be embroiled in procurement irregularities and leadership tussles as such.

Isaac called on President Tinubu and the Minister of Steel Development, Prince Shuaibu Abubakar Audu to not only wade into the procurement violations at hand but also ensure sanity is restored in the agency by immediately setting up a new board to replace the dissolved one which will in turn restrict group of persons parading themselves as members of NSC board.

“President Tinubu and the Minister of Steel Development must not treat this issue with kid gloves or deodorize it as steel development remains pivotal to economic progress elsewhere around the world.

“So, I call on Mr. President to immediately form a new board, I expect the minister to ensure the agency runs smoothly and starts making the expected progress. I also expect the Federal Government and its anti-corruption agencies to get to the root of this infractions raised in the investigation,” Isaac stated.

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