How the government agency sold 2 billion naira assets for 13 million naira in Nigeria

Office of the Federation Auditor General, Photo credit: Google

How the government agency sold 2 billion naira assets for 13 million naira in Nigeria

The Office of the Auditor General of the Federation

questioned the management of the Ogun-oshun River Basin Development Authority for selling government facilities, goods and equipment (PPE) valued at over N2 billion for a paltry N13.618 million .

Consequently, the House of Representatives Public Accounts Committee, PAC, chaired by Rep. Busayo Oluwole Oke pierced the Agency’s Director General, Olufemi Odumosu last Friday to unravel the mystery behind the deal.

However, Odumosu justified his action by telling the Committee that the PPE had been disposed of through public actions carried out by the auctioneers appointed by the Federal Ministry of Water Resources, who also approved the auction.

PPE records auctioned and seen by newsmen covering the investigation revealed that an 800 KVA Perkins Diesel generator set brought by the agency in 2006 for an undisclosed amount was sold for 550,000 N in 2018 after being declared unserviceable.

Also, a CAT Payloader bought for N70,000 in 1982 was sold for N40,000 while other earthmoving equipment such as bulldozers, graders and escalators were sold for between N350,000 and N550. 000N as unusable items.

Additionally, a Toyota Camry 2.5L purchased in 2013 for N8.150 million, with a book value of N1.222 million which would have cost the agency N1.2 million to repair was sold for N22,500; while mowers purchased in 2004 and lawn mowers purchased in 2005 were sold for N2000 and N6500 respectively.

Three Peugeot 504 station wagons purchased for N2.9 million each and we are still in running condition at the time of sale were sold for N26,400 each, while a Mistubushi gallop truck which cost the agency N8.55 million was sold as scrap for N80,000 while a DAF truck (1000) bought for N5 million was sold for N90,000.

Additionally, a Toyota Hilux purchased for N3.75 million which would have cost N187,500 to repair was sold for the same N187,500.

While further defending the action, Odumosu, who appeared, said the auction was conducted transparently under the supervision of the Ministry of Water Resources.

Although Odumosu said that the EPPs up for auction date back to the late 1970s and early 1980s, a thorough study of the documents presented to the Committee revealed that the oldest of the properties was purchased in 1980, while the most recent of these was purchased in 2013.

At one point during the hearing, Odumosu sought to remove the documents and replace them with another, but his request was denied by the Committee.

He said in his communication dated May 16, 2022 that “your observation, which is however noted, was based on the fact that at the time of the elimination, the authority could not hand over the entire schedule of historical costs relating to these items out of order.

“It’s mainly because they (the unusable items) were purchased from the late 1970s to the early 1980s when the authority’s operations began spanning a period of 35 to 40 years.

“In the meantime, most of the officers directly involved in the purchase were either deceased, retired, or both. However, thanks to the frantic efforts made (in the past which have been repeated) to recall the affected living retirees to assist in the archival retrieval of the documents relating to the purchase of the items, they have yielded significant results”.

In a quick reaction to the submission of House Committee Chairman Odumosu, Oke disapproved of the development, while questioning the way auctioneers were selected and the usurpation of the office of the board of trustees. the agency by the ministry.

Oke insisted that the provisions of the Public Procurement Act were not being followed for the sake of items resulting in possible loss of revenue for the government.

The Committee, however, requested the Minister of Water Resources and the Ministry’s Permanent Secretary to appear before the Committee on June 9 to explain their role in the auction.

The vice-chairman of the committee, Rep. Abdullahi Abdulkadir, asked the agency to submit to the House the valuation report carried out on the items before they were sold, adding that the ministry’s letter to the auctioneers made it clear that the items should not be sold. below government rating.

By PRNigeria

Kidnapped school children

Yauri FGC students, Kebbi
339 days 17 hours 22 minutes 48 seconds,


Baptist School Students, Kaduna
321 days 19 hours 4 minutes 13 seconds


Students from Tegina Islamiya, Niger (released)

Spent 88 days from May 30, 2021 to Aug 26, 2021


Report by: PRNigeria.com