Education

Edo state government awards N23 million contract to Inactive company

By Kafilat Taiwo

February 24, 2022

Just from the outside alone, you can tell that the school environment is conducive for learning. Although it is a public school, the environment looks appealing to the  pupils and their teachers.

When the Dataphyte team visited Edaiken Primary School, Ogbese, Edo state,  it was confirmed that the school renovation project awarded by the Edo state government in 2019, had been executed. 

The Edaiken Primary School, Ogbese, Ovia North L.G.A Edo State, which is located on the Uselu-Ugbowo road in Edo State, has been renovated by the Edo state government.

The headteacher and teachers at Edaiken Primary School in Ogbese, Ovia North East L.G.A, Edo State, confirmed the development to the Dataphyte team about the renovation and constructions that had happened in the school within the last two years.

The team observed that the project had been executed with 10 blocks of six classrooms fully reconstructed with a security post. 

The construction project was awarded to an inactive investment company.

While the 23 million naira renovation project was implemented based on witness account, the contract was awarded to an inactive company – the A.A. Orhion Investment in 2019 – based on findings from the Corporate Affairs Commission.

The award of the construction contract to A.A Orhion Investment Ltd contravenes the Public Procurement Act 2007. The Act states that “a bidder may have its bid or tender excluded if the bidder is in arrears regarding payment of due taxes, charges, pensions or social insurance contributions unless such bidders have obtained a lawful permit in respect to allowance, the difference of such outstanding payments or payment thereof in installments”

The Corporate Affairs Commission (CAC), described an inactive company as one that has not been carrying out any business or has not made any significant accounting transaction in the last two fiscal years. Also, an inactive company is one that has not paid its annual dues in the last two fiscal years. 

Further investigation revealed A.A Orhion Investment Ltd has not paid its dues to the CAC nor fulfilled its tax clearance for the period, rendering it inactive. 

The company may have deprived the government of tax revenue even as an entity awarded government contracts. 

CAC directive to erring members.

The Registrar General of the Corporate affairs commission (CAC), Alhaji Garba Abubakar, said the Companies and Allied Matters Act [CAMA 2020] permits the commission to deregister companies that have been inactive for 10 years.

The Registrar disclosed that many registered companies have been declared inactive for their failure to abide by the Commission’s directives. 

He said CAC has provided the operational status of all registered companies on its website, whether active or inactive. Inactive companies that wish to delist  itself from the  CAC website shall be free to do so. All inactive companies will be deregistered after 10 years.