CISLAC Raises Red Flags Over Procurement Process For Ajaokuta Steel, NIOMCO Revitalisation

Abuja, Nigeria – The Civil Society Legislative Advocacy Centre (CISLAC) has raised serious concerns over potential irregularities in the ongoing procurement process for selecting a Transaction Adviser to revitalize the Ajaokuta Steel Complex Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) in Itakpe.

In separate letters addressed to the Minister of Steel Development and the Director General of the Bureau of Public Procurement, CISLAC Executive Director Auwal Ibrahim Musa (Rafsanjani) urged the government to prioritise transparency and adhere to legal standards throughout the process.

Highlighting the strategic economic significance of ASCL and NIOMCO, CISLAC emphasised the need for a rigorous and transparent selection process to ensure public trust. The organization pointed out several key areas of concern:

Lack of Specific Weighting: The Request for Proposal (RFP) failed to specify the weight assigned to quality and cost factors, violating Section 51(1) of the Public Procurement Act, 2007. This omission could potentially undermine fairness in the selection process.

Non-Disclosure of Technical Scores: CISLAC noted that technical scores of bidders were not disclosed before the opening of financial proposals, a violation of Section 51(4) of the Act.

This lack of transparency raises concerns about the fairness of the evaluation process.

Absent Evaluation Criteria: The RFP lacked explicit evaluation criteria, contravening Section 46 (1)(e) of the Act and potentially allowing arbitrary scoring during the selection process.

Non-Compliance with Transparency Standards: CISLAC highlighted that Sections 23-24 of the Act mandate the transparent publication of bid opportunities and contracts awarded, a standard that has not been met in this case.

CISLAC expressed its worry that these irregularities could lead to the selection of an unqualified advisor, ultimately hindering the successful revitalization of these crucial national assets.
The organisation urged the government to take immediate steps to address these concerns, ensure transparency and fairness in the procurement process, and uphold public trust in the project.