2019 Budget: FG Warns MDAs Against Inflating Procurement Contracts

budget
  • 2019 Budget: FG Warns MDAs Against Inflating Procurement Contracts

The Federal Government has warned Ministries, Departments and Agencies of government against inflating procurement contracts that will be implemented under the 2019 budget.

The warning was contained in the 2019 Budget Call Circular which was obtained exclusively by our correspondent from the Budget Office of the Federation.

The Budget Call Circular, which was signed by the Minister of Budget and National Planning Senator Udo Udoma, sets out the requirements and instructions that must be followed in the preparation of the 2019 Federal Government budget proposal.

The Federal Government in the circular said that all MDAs should ensure that the items included in their respective budget must not violate the requirements of the Public Procurement Act.

The government also warned MDAs to desist from the practice of specifying the models/brands of assets they propose to acquire in the budget.

It said, “In preparing the budget estimates, MDAs are required to adopt the approved price list for various items as published by the Bureau for Public Procurement.

“This list will be posted on the websites of BPP and Budget Office of the Federation.

“Any costing not based on the approved price list will be inadmissible, except where the specific item is not on the list.

“MDAs are also enjoined to desist from the practice of specifying the models/brands of assets they propose to acquire in the budget.

“As much as possible, generic specification of items should be made in accordance with the Public Procurement Act.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: samed@investorsking.com.

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