Why FG Canceled Oil And Gas Pre- Shipment Inspection Tendering Process

The Nigerian government has through the Minister of
Finance, Kemi Adeosun, ordered the immediate
cancellation of the tendering process for the
engagement of Pre-Shipment Inspection and Monitoring
Agents for Oil and Gas.
This decision was informed by the receipt of complaints
and a petition alleging irregularities in the process,
Director of Press in the Ministry, Mr. Marshall Gundu,
said in a statement in Abuja on Wednesday.
The Pre-shipment inspection of oil and gas exports,
which commenced earlier in the year, is believed to
have enhanced government revenues by preventing
misstatement and understatement by exporters as it
involves the issuance of a Clean Certificate of
Inspection, confirming the volume and the value of all
exports.
According to the statement, Adeosun was quoted as
saying: “The sheer volume of complaints and the wide
range of sources they emanated from had raised a
sufficient level of concern around the process to
warrant a full cancellation rather than a suspension.
“This administration stands for transparency and
accountability and it is, therefore, important that all
procurement and tendering exercises must be
undertaken in accordance with best practices”.
Mrs. Adeosun disclosed that the Ministry of Finance
was in touch with the Bureau of Public Procurement and
that a new process that would be transparent in line with
the policy of the current administration, would be
announced shortly.
She said: “President Muhammadu Buhari, had in June,
mandated the Federal Ministry of Finance, under the
then Permanent Secretary, Mrs. Anastasia Nwoabia, to
commence the process of engaging Pre-Shipment
Inspection and Monitoring Agents. Upon the approval of
the Bureau of Public Procurement, a selective tendering
process was initiated under which 65 companies were
selected and invited to bid.
“However, since the inception of the process, numerous
complaints were sent to the Federal Ministry of Finance,
suggesting that the method by which the 65 companies
were selected was faulty and lacked transparency.
“Additionally, a formal petition was received by the
Bureau of Public Procurement making specific
allegations about the process. Under Public
Procurement rules, the receipt of a formal petition
requires a suspension of the tendering process to allow
an investigation. However, in this instance, the Minister
has taken the decision to cancel”, Gundu added.