• Tue. Dec 3rd, 2024

CISLAC Calls For Transparency In Ajaokuta Steel Complex Procurement Process

The Civil Society Legislative Advocacy Centre (CISLAC), the Nigerian chapter of Transparency International, has called on the Ministry of Steel Development and the Bureau of Public Procurement (BPP) to ensure transparency and strict adherence to legal standards in the ongoing procurement process for selecting a Transaction Adviser to oversee the revitalization of the Ajaokuta Steel Complex Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) in Itakpe.

In separate letters addressed to the Honourable Minister of Steel Development and the Director General of the BPP, CISLAC’s Executive Director, Comrade Auwal Musa Rafsanjani, raised concerns about irregularities in the process. He warned that these potential lapses might contravene the Public Procurement Act of 2007, the Public Procurement Regulations, and other established standards of accountability and transparency.

CISLAC pointed out several shortcomings in the procurement process, including the failure to specify the weight of quality and cost factors in the Request for Proposal (RFP), as mandated by Section 51(1) of the Public Procurement Act. It also criticized the non-disclosure of bidders’ technical scores before opening financial proposals, which violates Section 51(4) of the same Act. The absence of clear evaluation criteria in the RFP, as required by Section 46(1)(e), was highlighted as another concern, raising fears of arbitrary scoring. Furthermore, the organization noted that Sections 23-24 of the Act, which require the transparent publication of bid opportunities and contract awards, had not been adhered to in this instance.

Adding to these concerns, CISLAC highlighted the exclusion of the Infrastructure Concession Regulatory Commission (ICRC) from the process, describing this as a breach of the ICRC Act of 2005. The omission of the ICRC, which plays a key role in public-private partnerships, was deemed particularly troubling for a project of such national importance.

Rafsanjani stressed the significance of the ASCL and NIOMCO to Nigeria’s economic growth, especially given the federal investments exceeding $7 billion made over the past four decades without yielding tangible results. He emphasized that Nigeria could not afford to repeat the mistakes of the past in the management and revitalization of these critical assets. He further underscored the importance of involving Civil Society Organizations (CSOs) to monitor the procurement process, in line with both global best practices and the National Anti-Corruption Strategy.

Transparency in disclosing conflicts of interest, as mandated by Section 57 of the Public Procurement Act, was also highlighted as crucial for ensuring impartiality in the selection process. CISLAC argued that the procurement must adhere to public ethics and fiscal responsibility standards, as well as ministerial oversight obligations, to foster public confidence.

In his concluding remarks, Rafsanjani urged the Honourable Minister of Steel Development and the Director General of the BPP to intervene decisively, ensuring that the process is open, fair, and transparent. He reiterated the need to select the most qualified Transaction Adviser capable of achieving the project’s goals, thereby restoring public trust and ensuring the successful revitalization of the Ajaokuta Steel Complex and the National Iron Ore Mining Company.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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