Infrastructure
FEC Sets up project Audit Committee
Jul 1, 2010, 10:20
| | The Federal Executive Council (FEC) has resolved that henceforth states wishing to embark on federal projects must obtain presidential approval before embarking on such projects and also approved the constitution of an Audit Committee to audit any on-going or already executed project(s).
This was disclosed by the Minister for information, Professor Dora Akunyili in company of the Minister of State for information, Mr. Labaran Maku at a media briefing on the outcome of the week’s Federal Excutive Council (FEC) meeting chaired by President Goodluck Jonthan on Wednesday, June 30 at the State House in Abuja.
Professor Akunyili noted that the decision was consequent on a report on the guidelines for execution of Federal Government projects by state governments and high cost of procurement in Nigeria submitted by Vice-President Namadi Sambo.
She stated that the council emphasised that such projects should meet standards and guidelines of the appropriate federal ministry supervising such projects which the state government concerned wants to execute.
She said that the Committee earlier set up by FEC and chaired by the vice President had submitted its report stating that there were no adverse social and legal implications in state governments executing Federal Government projects located in their states.
The council she stated further, approved that re-imbursement of expenditure should be subjected to the relevant section of the Public Procurement Act that deals with quality and cost.
She said that in the case of joint venture projects, council approved that the Federal Government‘s contribution/grant shall be determined on its consideration on the need of the project.
On the categories of the federal projects that states could execute in anticipation of a refund, she itemized them to include water, power, road, transportation, health and other critical infrastructure.
Speaking on the constitution of an Audit Committee the information minister said that the committee is to be headed by the Minister, whose ministry supervises the instant project(s) with the Director General of the Bureau of Public Procurement as a member.
She stated that the committee would be responsible for the verification of claims by the state government(s) for projects with presidential approval noting that 100% of the verified claims would be settled.
On projects without presidential approval, she said that the audit committee shall submit recommendations for considerations of Mr. President on issue by issue basis.
She also disclosed that the Minister of Environment Mr. John Odey presented a note intimating the council of the country’s participation at the Oslo Climate and Forest Conference, held in Oslo, Norway in May.
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