The House of Representatives at its plenary on Tuesday March 23, 2021 has resolved to set up an Ad-hoc committee to investigate the failure of Ministries, Departments and Agencies (MDAs) to release retention funds.
Hon. Abubakar Makki Yalleman who moved the motion noted that MDAs for the last ten years have held on to funds running into billions of naira meant for contractors despite issuing certificate of completion to them and taken over the projects.
He noted that the withheld funds are never captured by MDAs as generated revenues, accounted for or appropriated in subsequent budget and this attitude is not good for the growth of small and medium scale enterprises as it denies contractors the needed Capital to function.
The Hon. Also observed that with the harsh economy in the Country, low profit margin, inflation, high lending rates coupled with difficulty of accessing funds by MSMES, a significant portion of contractors’ profit constitute the retention fees.
The House is concerned that the action of MDAs is gross infraction of public procurement Act 2007 and therefore resolved to set up an Ad-hoc committee to investigate the failure of MDAs to release retention funds and report back within six weeks for further legislative action.
Olalere Taiwo:
For Head of Press
Office of the Special Assistant to the President on National Assembly Matters
Tuesday March 23, 2021
