The Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies, corporations, councils, authorities and commissions that they risk sanctions for breaching procurement regulations.
The government raised the alarm over contract awards that exceed approved price benchmarks, restricted competition through exclusive arrangements for contractors and undermine regulatory oversight.
The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of Federal Government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, or face penalties.
The circular, obtained by our correspondent in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, among other senior public officials.
Akume expressed concern that several government-owned enterprises and corporations continued to award contracts in violation of the procurement law, despite its amendment by the Finance Act, 2020.
He said the practice had resulted in inflated contract sums, restricted competition and inadequate regulatory oversight, warning that the government would no longer tolerate such breaches.
The SGF consequently directed all government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Act.
