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From Godwin Tsa, Abuja
The Federal government has commenced moves to reduce financial risk involving contractual agreements and judgment debts with the launch of the Federal Complex Contracts Process and Administration (FCAS).
FCAS is specifically designed to enhanced operational efficiency and reduce financial risk.
Over the years, Nigeria was emershed in some controversies arising from contractual agreements, one of which was the P&ID contract.
The Solicitor General of Nigeria and Permanent Secretary, Federal Ministry of Justice, Mrs Beatrice Jedy-Agba who spoke at the launch of FCAS in Abuja, decried the challenges including lack of clarity from contracts that the Federal government entered into despite the presence of some existing laws like the Procurement and Fiscal Acts.
The event proper was the 2023 Manual and Workshop Engagement with Legal Advisors and Key Stakeholders, with the theme:” “Strengthening Contract Management and Compliance in Federal Governance.”
Jedy-Agba, who frowned at the ways and manner subsisting laws are being undermined explained that Memorandum of Understanding (MoU) are governed by law.
According to her, “ You can not just do what you like. We expect that you have capacity, which should reflect in the quality of agreement you are bringing.
She charged Legal Advisors to do their best to avert failed contracts and and to further mitigate the effects.
Jeddy- Agba welcomed the idea of collaboration as a key to enhancing effective implementation of projects we deliver on behalf of the government.
Deputy Director in the ministry, Mr. Augustine Uchechukwu Kalu, said the new drive was to guide the ministry and various departments on how to navigate the FCAS platform and get positive results.
According to him, one of its fundamental objectives is to ensure that project not needed is not embarked upon.
He disclosed that about 40 MDAs have been unbundled through it’s implementation.
Kalu assured that the programme will not be jettison half way by the Federal government.
“ We will look at the feasibility studies, Public Private Partnership arrangement, funding arrangement, due diligence both country and out country so that projects are not abandoned,” Kalu said.
Meanwhile, the Chief Consultant to the Ministry on FCAS, Dr Mark Osa Igiehon, expressed government readiness to take action through the justice ministry so as to avert what happened in the case of P&ID contract.
According to him, government by the new plan would be able to enter into projects and contracts in a sophisticated way using specialists not only to minimise possibility of project failure, but also to be able to processed and record contracts in the most proper way.
“Government is now ready to take action on such high level, high valued and high risk projects so that in the future, we will have fewer contract failure and would not have to pay huge sum of money on failed contracts,” Igiehon said.
