Unregistered Company Got N69 Million Contract To Furnish Unknown Training Centre In Ogun; Residents Lament Govt Neglect
By Adedoyin Oguntade
The Office of the Senior Special Assistant to the President on Sustainable Development Goals paid a sum of ₦69 million to Salolo Global Limited on March 21, 2024, for the furnishing of a training center in Ibafo, Ogun Central Senatorial District, Ogun State.
This disbursement was found on Govspend, a government procurement data and analytics website, and the payment was described as “being payment to the company for furniture & equipment for 1no skill acquisition centre with fashion designing/hair salon, refrigerator, etc., at Ibafo, Ogun Central Sen Dist, Ogun State.”
Despite the disbursement of such funds, residents and community leaders were unaware of any training centre in Ibafo, raising questions about the money’s whereabouts. In various interviews with Platform Times, community leaders said they were not aware of any disbursement for training equipment.
This procurement should empower many residents of Ibafo, especially youths, who are faced with economic hardship due to unemployment.
Pastor Ayeni, a community leader in Ibafo, explained that he is unaware of any money disbursed for furnishing any training centre. He said, “We are talking about millions of naira, but we, the community leaders, do not know anything about the project. I do not know of any money paid to Ibafo.” The Procurement Act of 2007 mandates a procuring company to carry out a need assessment; if this were done, the community would be aware of the procurement.
Henry Akinlosotu, a CDC Chairman in a community under Ibafo, explained that he is just hearing about the project for the first time. He said, “A whole lot of things like this have been happening in the past; we will just keep hearing about these projects, but we do not see them get affected.” He further explained that despite being a community leader, he has not heard anything about the project.
Adedapo Oguntade, the Vice Chairman of another Community Development Association under Ibafo, said the project, if effected, would have been a means to empower the youth in the Ibafo community. He said, “The training centre would have changed the lives of many individuals because there are a whole lot of people out there who have the skills but do not have access to equipment.”
Salolo: An Unregistered Company
Salolo Global Nigeria Limited was awarded a sum of ₦69,822,635.92 for the provision of furniture and equipment at the ‘yet to be located’ skill acquisition centre.
Salolo Global Nigeria Limited cannot be found on the public search portal of the Corporate Affairs Commission website. Under Nigerian law, specifically the Companies and Allied Matters Act (CAMA) 2020, operating a business without registration with the Corporate Affairs Commission (CAC) is prohibited. Engaging with an unregistered company carries significant legal risks.
According to section 16(7)(f) of the Public Procurement Act 2007, “(7) A bidder shall be excluded from the procurement process if – (f) he is not registered on the National Database of Contractors, Consultants and Service Providers by the Bureau of Public Procurement.”
In terms of legal risks, engaging the services of an unregistered company could lead to legal consequences such as contract termination, and fines.
Under the Public Procurement Act (PPA) 2007, engaging the services of an unregistered company is generally not permissible. Section 16 of the PPA states that only registered and qualified bidders can participate in procurement processes. A company must be duly registered with the Corporate Affairs Commission (CAC) and have the necessary licenses to engage in the specific services or contracts being procured. Section 25 emphasizes that any procurement must adhere to the provisions of the Act, which includes verifying the legal status and registration of bidders. Engaging an unregistered company would violate these procurement processes. According to the Act, engaging an unregistered company could expose the contracting entity to penalties as stipulated in the PPA, including fines or disqualification from future procurement activities.
Based on findings made on Govspend, seven project funds have been disbursed to Salolo Global between October 2023 and March 2024.
The Senator Is Unaware – Aide
In a telephone conversation with Adetunji Adeteye, an aide to Senator Afolabi Shuaib of Ogun Central, he explained that the senator was unaware and interested in the findings of this reporter, “If you are able to get all that information (from the OSSAP-SDGs), then the senator should act on what you have written about.” He concluded by saying that the matter is something that the senator is highly interested in.
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