FEC Freezes Project Memos with Unapproved Cost Changes
FEC suspends memos with unapproved project cost changes
FEC puts hold on project memoranda requiring cost adjustments, suspending project budget changes until further notice. Decision aims to allow for thorough project evaluation and prevent project backlog.
The Federal Executive Council (FEC) has put a hold on all project memoranda requiring cost adjustments from all Ministries, Departments, and Agencies (MDAs), effectively suspending any changes to project budgets until further notice.
This came after discussions about the document that Minister of Works Dave Umahi had brought to the council's attention and potential approval on Wednesday.
Mohammed Idris, the Minister of Information and National Orientation, and his Justice, Budget, and Economic Planning ministers, Lateef Fagbemi and Atiku Bagudu, briefed reporters following the meeting. They said the decision was made to revoke the memoranda in order to allow for a thorough evaluation of the projects.
He stated that the FEC ordered the Attorney General of the Federation to collaborate with the Works Minister to make sure that the projects adhere to budgetary requirements, noting that the majority of them were carried over from previous administrations.
According to Idris, the review's primary goal is to stop the nation's project backlog.
He stated that the document will still be discussed at the council's upcoming meeting.
An official from the government said: “So today, we didn't have so many projects that were approved as a result of that, but of note is to say that Mr President, in line with his thinking of ensuring that there is probity, proficiency and diligence in project execution, has directed that all projects that require additional funding, especially major projects of the Ministry of Works, be looked at once again so that there will be further deliberation on that at the next council meeting.”
Additionally, the council has instructed all MDAs to check the planned purchases to make sure that the monies budgeted match the cash really available for the projects.
Speaking on the matter, Minister of Budget and Economic Planning Bagudu stated that the directive aligned with President Tinubu's “desire to enhance more fiscal discipline and further demonstrate to Nigerians our commitment to serving them better, raised the issue of the reconciliation between the appropriation act, public procurement law, and the fiscal responsibility act.”
He further explained: “The FEC has set up a committee under the chairmanship of the Attorney General and Minister of Justice to review the Public Procurement Act.
“However, after a robust discussion, the president directed that all ministries department and agencies should review their intended procurement as provided for in the appropriation such that where there are gaps between appropriated sums and sums required to execute the projects, that can be brought to the attention of both the Ministry of Budget and National Planning and Federal Ministry of Finance, such that the memo that the cabinet secretariat will provide to the FEC, will have clarity of where funding is expected to come from and recommendation so as to guide effectively the Federal Executive Council decision.
“Mr. President directed that the report of the public procurement committee be provided to him so that can take decisions accordingly.”
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