Reps Grill Minister As Agency Auction ₦2bn Assets For ₦13.618m – [See List]

The managing director of the Ogun-Osun River Basin Development Authority (OORBDA), Olufemi Odumosu, has been summoned by the House of Representatives for disposing government assets at ridiculous amounts.

Naija News understands that the House Committee on Public Accounts has earlier grilled the Minister of Water Resources and the Permanent Secretary of the ministry over the development, describing as paltry the price at which the government properties were disposed of.

It was reported that OORBDA had sold government equipment machinery and other valuable properties valued at over ₦2bn at a paltry sum of ₦13.618m.

On the list of the ridiculous transactions is also a Toyota Camry 2.5L bought in 2013 for ₦8.150m, with a book value of ₦1.222m, which would have cost the agency ₦1.2m to repair, was sold for ₦22,500.

The OODA managing director had though tried to defend himself, stating that the auction was transparent and was carried out under the supervision of the ministry.

The Office of the Auditor General for the Federation has, however, frowned at the report demanding cogent explanations.

At the investigative hearing last Friday, Odumosu told the committee that the PPE were sold off by the auctioneers appointed by the Federal Ministry of Water Resources, who also approved the auction.

The lists of other assets auctioned by the ministry are as follows:

“An 800KVA Perkins diesel generating set bought by OORBDA in 2006 for an undisclosed amount was sold for ₦550,000 in 2018 after it was categorised as ‘unserviceable.’

“Also, a CAT payloader bought for ₦70,000 in 1982 was sold for ₦40,000, while other earth-moving equipment like bulldozers, graders and escalators were sold for between ₦350,000 and ₦550,000 as unserviceable items.

“Similarly, trimmers bought in 2004 and lawnmowers bought in 2005 were sold for ₦2000 and ₦6500, respectively.

“OORBDA also disposed of off three Peugeot 504 station wagons bought for ₦2.9m each for ₦26,400 each, while a Mitsubishi Canter lorry which cost the authority ₦8.55m was sold as scrap for ₦80,000, with a DAF (1000) lorry bought for ₦5m auctioned for ₦90,000.”

The report further revealed that the agency has sold a Toyota Hilux pick-up van bought for ₦3.75m, which would have cost ₦187,500 to repair, for the same ₦187,500.

Defending further the transactions, Odumosu stated the PPE auctioned dated back to the late 70s and early 1980s, whereas the documents presented to the lawmakers showed that the oldest of the property were bought in 1980, while the newest of them was bought in 2013.

While being grilled by the lawmakers, Odumosu sought to withdraw the documents and replace them with another, a request the lawmakers declined.

The MD had said in his written submission dated May 16, 2022, that “your (committee’s) observation which is, however, noted was premised on the fact that at the time of disposal, the authority could not hand on all schedules of historical cost relating to these unserviceable items.

“This primarily was because they (unserviceable items) were procured dating back to the late 1970s to early 1980s at the commencement of the operations of the authority spanning over a 35 to 40-year period.”

Odumosu stressed that most officers directly involved in the purchase had either died or retired or both.

“However, through frantic efforts made (in the past which has been resumed) at recalling relevant living retirees to assist in archival retrieval of records relating to the purchase of the items had yielded significant results,” he added.

On his part, the Chairman of the committee, Oluwole Oke criticised the auction while also questioning the mode of selecting the auctioneers and the usurpation of the function of OORBDA’s board by the ministry.

Oke pointed out that the provisions of the Public Procurement Act were not followed in the sale of the items, resulting in a possible loss of revenue to the government.

Consequently, the committee asked the Minister of Water Resources and the Permanent Secretary to appear on June 9, 2022, to explain their role in the auction.

The Deputy Chairman of the committee, Abdullahi Abdulkadir, also asked the authority to submit the valuation report carried out on the items before they were sold, adding that the letter from the ministry to the auctioneers stated clearly that the items must not be sold below government valuation.