FG APPROVES UP TO FIVE-YEAR BAN FOR DEFAULTING CONTRACTORS

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The Federal Government has approved new guidelines allowing contractors, consultants and service providers found guilty of procurement violations or poor contract performance to be barred from participating in federal government contracts for between three and five years.

The directive is contained in a circular titled “Implementation of the National Guideline on Debarment of Contractors,” signed by the Secretary to the Government of the Federation, George Akume.

Under the new guidelines, contractors may face debarment for offering bribes or other benefits to influence procurement decisions, being convicted of fraud linked to public contracts, deliberately failing to meet contractual obligations, having a record of unsatisfactory performance or falsifying documents.

A contractor already debarred by a multilateral organisation may also be considered for debarment by the Nigerian government.

Once a debarment takes effect, Ministries, Departments and Agencies will be prohibited from soliciting offers from the affected contractor or awarding new contracts to the firm. The restriction may also apply to subcontracting arrangements and joint ventures.

The guidelines provide a process through which the Bureau of Public Procurement investigates alleged violations and notifies affected contractors before a final decision is made.

Contractors will be given an opportunity to respond to allegations before the Debarment Committee reaches a decision.

The Federal Government said the guidelines are intended to promote integrity, transparency and accountability in public procurement, ensure value for money and protect public resources from non-performing contractors.