After weeks of speculations and war of words between the Media Aides of the incumbent Gov. Alex Otti, and his predecessor, Dr Okezie Ikpeazu, Abia State Government, has finally released the much-expected forensic audit report of Ikpeazu’s administration.

See full Report Below

Provision of Process  Review Services  

Abia State Government (“ABSG”) 

Project Azumini – Final Report of Factual Findings Period covered – 29 May 2015 to 28 May 2023 

KPMG Advisory Services 

March 2024 

This report contains 359 pages

Abia State Government 

Provision of Process Review Services  Project Azumini – Final Report of Factual Findings March 2024  

The Executive Governor, 

Government House, Umuahia 

Abia State 

Nigeria 

2 March 2024  

Attention: Dr. (Mrs.) Njum Onyemenam (FCA), Accountant General, Abia State Dear Madam, 

Final Report: Provision of Process Review Services to Abia State Government 

Please find attached an electronic copy of our final report of factual findings on the Provision of Process Review Services to Abia State Government (“ABSG” or “the State”) covering the  period from 29 May 2015 to 28 May 2023. This report has been prepared in accordance  with the engagement letter dated 13 July 2023.  

If you require any clarification on the report, please do not hesitate to contact the undersigned  on 0803 403 5542 or saheed.olawuyi@ng.kpmg.com or Bright Anyanwu on 0802 816 271  6244 or bright.anyanwu@ng.kpmg.com or Omolola Abioye on 0806 439 5462 or  omolola.abioye@ng.kpmg.com.  

We thank you for the opportunity to be of service to you on this important assignment and  we look forward to working with you again in the future. 

Yours faithfully, 

Saheed Olawuyi  

Partner, Enterprise Risk Services 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Restriction on Distribution of the Report This final report is intended for the use of the Abia State Government (“ABSG”) and should  not be used for any other purposes. This report may contain legally privileged and confidential information. No part of the content  may be quoted, referred to or disclosed, in whole or in part, without KPMG’s prior written  consent.  Nothing in any part of this report shall preclude or subject to any limitation whatsoever the  release of the report / communication by ABSG to any law enforcement or court of law to  whose control ABSG is subject, or becomes subject, provided that KPMG shall accept no  responsibility or liability to such agency of government in connection with their use of the  report. ABSG acknowledges that KPMG to the fullest extent possible shall not assume any liability  whatsoever to any third-party recipient of this report or any other person or authority  whomsoever under any circumstances whatsoever, irrespective of whether KPMG has  consented to the disclosure of this report to such a third party.  ABSG shall indemnify and hold KPMG harmless against any claim, litigation fee, cost,  expenses, or liability relating to the submission of this report to third parties by ABSG. KPMG may provide ABSG with oral, inception reports, status updates, draft reports, or  draft presentations. Nonetheless, our final report shall take precedence in all  circumstances, and therefore, no reliance should be placed by ABSG on any oral,  inception report , status updates, draft reports, or draft presentations.

Distribution (electronic copy via email

Dr. (Mrs.) Njum Onyemenam, Accountant General, Abia State Government  Hon. Michael Akpara, Commissioner for Finance, Abia State Government  Contacts at KPMG Advisory Services in connection with this report are: 

Saheed Olawuyi 

Partner, Enterprise Risk Services 

Tel: + 234 803 403 5542 

saheed.olawuyi@ng.kpmg.com 

Bright Anyanwu 

Manager, Enterprise Risk Services 

Tel: +234 816 271 6244 

bright.anyanwu@ng.kpmg.com 

Omolola Abioye 

Assistant Manager, Enterprise Risk Services 

Tel: +234 806 439 5462 

omolola.abioye@ng.kpmg.com

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

Contents 

Glossary of Terms …………………………………………………………………………………………………9 1 Introduction ………………………………………………………………………………………………..14 1.1 Background………………………………………………………………………………………………. 14 1.2 Objectives ………………………………………………………………………………………………… 14 1.3 Nature of our assignment …………………………………………………………………………… 15 1.4 Period under review…………………………………………………………………………………… 16 1.5 Limitations and subsequent events………………………………………………………………. 16 1.6 Legal advice……………………………………………………………………………………………… 16 1.7 Procedures Performed……………………………………………………………………………….. 16 1.7.1 Contract Awards ……………………………………………………………………………………….. 16 1.7.2 Bank Accounts………………………………………………………………………………………….. 18 1.7.3 Sale and Disposal of Public Assets ……………………………………………………………… 20 1.7.4 Utilisation of Funds from Federation Accounts Allocation Committee (FAAC) ……. 21 

1.7.5 Utilisation of credit facilities obtained by ABSG from UBA, Zenith Bank and Union  Bank………………………………………………………………………………………………………… 23 

1.7.6 Collection and Utilisation of IGR by ASBIR……………………………………………………. 23 1.8 Sources and Description of Documents Obtained………………………………………….. 25 1.9 Appendices ………………………………………………………………………………………………. 25 2 Executive Summary…………………………………………………………………………………….26 2.1 Contract Awards ……………………………………………………………………………………….. 26 2.1.1 Payments to Contractors ……………………………………………………………………………. 26 2.1.2 Selection of Contractors and Award of Contracts …………………………………………… 27 2.2 Bank Accounts………………………………………………………………………………………….. 28 2.2.1 Signatories to bank accounts maintained by ABSG ……………………………………….. 28 2.2.2 Bank Balances as at 28 May 2023 ………………………………………………………………. 29 2.2.3 Review of payments by ABSG from UBA and Zenith Bank ……………………………… 29 2.2.4 Possible Conflict of Interest ………………………………………………………………………… 29 

2.2.5 Bank Charges and interest on Credit Facilities obtained from UBA, Zenith Bank and  Union Bank ………………………………………………………………………………………………. 29 

2.3 Sale and Disposal of Public Assets ……………………………………………………………… 30 2.4 Utilisation of Funds from Federation Accounts Allocation Committee (FAAC) ……. 30 2.4.1 Collection and Utilisation of Funds from FAAC………………………………………………. 30 

2.5 Utilisation of credit facilities obtained by ABSG from UBA, Zenith Bank and Union  Bank………………………………………………………………………………………………………… 31 

2.6 Collection and Utilisation of IGR by ASBIR……………………………………………………. 31 3 Contract Awards …………………………………………………………………………………………34 3.1 Contracting Process…………………………………………………………………………………… 34 3.2 Contract Award – MDA’s View…………………………………………………………………….. 35 3.3 Selection of Contractors and Award of Contracts – MDA’s View………………………. 36

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

3.3.1 85 contracts amounting to ₦157,344,353,425.87 executed through Tendering  process – MDA’s View……………………………………………………………………………….. 40 

3.3.2 Ten (10) contracts executed through Direct Labour ……………………………………….. 47 3.4 Contract Award – Contractors’ View…………………………………………………………….. 51 3.4.1 Track Care Global Construction Company (Track Care)…………………………………. 53 3.4.2 Tunnel End Investment Company Limited (Tunnel End) …………………………………. 58 3.4.3 Ferotex Construction Company (Ferotex)……………………………………………………… 62 3.4.4 China Zhonghao Nigeria Limited (China Zhonghao) ………………………………………. 66 3.4.5 Hartland Nigeria Limited (Hartland) ……………………………………………………………… 69 3.4.6 Ekcleen Integrated Services Nigeria Limited (Ekcleen)…………………………………… 72 3.4.7 Setraco Nigeria Limited (Setraco)………………………………………………………………… 76 3.4.8 Rock-Waters Integrated Services Nigeria Limited (Rock-Waters)…………………….. 79 3.4.9 Delhope Resources Limited (Delhope)…………………………………………………………. 82 3.4.10 Arab Contractors Limited (Arab Contractors)…………………………………………………. 86 3.4.11 Yodel Global Services Limited (Yodel) …………………………………………………………. 89 3.4.12 Sannan Jadoon International Limited (Sannan Jadoon)………………………………….. 92 3.4.13 Bulletine Construction Company Limited (Bulletine)……………………………………….. 95 3.4.14 PRO-M Limited (PRO-M)……………………………………………………………………………. 98 3.4.15 Vision Cars Limited (Vision Cars) ………………………………………………………………. 101 3.4.16 Logistics De-Luke Limited (Logistics De-Luke)…………………………………………….. 104 3.5 Payments to Contractors ………………………………………………………………………….. 107 

3.5.1 Track Care Global Construction Company Limited (Track Care) – ₦21,869,691,875.03 ………………………………………………………………………………… 111 

3.5.2 Ferotex Construction Company Limited (Ferotex) – ₦12,601,634,391.81 ……….. 116 3.5.3 Tunnel End Investment Company Limited (Tunnel End) – ₦13,405,715,359.82.. 118 3.5.4 Ekcleen Integrated Services Nigeria Limited (Ekcleen) – ₦6,150,867,896.90 ….. 123 

3.5.5 Rock-Waters Integrated Services Nigeria Limited (Rock-Waters) – ₦4,038,000,000.00 ………………………………………………………………………………….. 126 

3.5.6 Hartland Nigeria Limited (Hartland) ……………………………………………………………. 128 3.5.7 Delhope Resources Limited (Delhope) – ₦4,789,384,959.42 ………………………… 129 3.5.8 Setraco Nigeria Limited (Setraco) – ₦3,310,000,000.00 ……………………………….. 131 3.5.9 PRO-M Limited (PRO-M) – ₦2,833,845,704.15 …………………………………………… 132 3.5.10 Macamuzy Nigeria Ltd (Macamuzy) – ₦2,990,000,000.00…………………………….. 133 3.5.11 Sponmor Services Ltd (Sponmor) – ₦3,246,700,000.00……………………………….. 134 3.5.12 Vision Cars Ltd (Vision Cars) – ₦2,130,700,000.00 ……………………………………… 135 3.5.13 Effdee Nigeria Ltd (Effdee) – ₦2,040,000,000.00…………………………………………. 137 3.5.14 Logistics De-Luke Limited (Logistics De-Luke) – ₦2,358,348,720.00 ……………… 138 3.5.15 China Zhonghao Nigeria Limited (China Zhonghao) – ₦2,020,161,386.88………. 139 

3.5.16 Dawn ‘N’ Daisy Integrated Service Limited (Dawn ‘N’ Daisy) – ₦3,585,400,000.00 141

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

3.5.17 Blessed Henken Company Limited (Blessed Henken) – ₦1,500,000,000.00……. 142 3.5.18 Pumeco Industries Nigeria Limited (Pumeco) – ₦1,559,983,017.97……………….. 143 3.5.19 Sannan Jadoon International Limited (Sannan Jadoon) – ₦998,750,000.00 ……. 144 3.5.20 Chintech Electro Nigeria Limited (Chintech) – ₦1,339,075,568.00 …………………. 146 3.5.21 Blessed Ugo Frank Global Ventures (Blessed Ugo) – ₦652,000,000.00 …………. 147 3.5.22 Universal Energy Oil & Gas Limited (Universal Energy) – ₦524,439,000.00 ……. 148 3.5.23 Bulletine Construction Company Limited (Bulletine) – ₦557,600,000.00 …………. 149 3.5.24 JMK Construction Company Limited – ₦550,000,000.00………………………………. 149 3.5.25 Arab Contractors Limited (Arab Contractors) – ₦608,981,491.00 …………………… 150 3.5.26 Zinnuche Ventures (Zinnuche) – ₦365,000,000.00………………………………………. 151 3.5.27 Innoson Vehicle Manufacturing Company Limited (Innoson) – ₦270,683,410.00 152 3.5.28 Masta Service Company Limited (Masta Service) – ₦580,000,000.00 ……………. 152 3.5.29 Yodel Global Resources Limited (Yodel) – ₦554,878,048.79 ………………………… 153 3.5.30 Findings from review of payments relating to other contractors ……………………… 154 4 Bank Accounts………………………………………………………………………………………….157 4.1 Overview of ABSG Bank Accounts…………………………………………………………….. 157 

4.2 Bank Balances as at 28 May 2023 and Signatories to Accounts maintained by  ABSG with all banks in Nigeria ………………………………………………………………….. 157 

4.2.1 Signatories to bank accounts maintained by ABSG ……………………………………… 157 4.2.2 Bank Balances as at 28 May 2023 …………………………………………………………….. 163 4.3 Proprietary of payments/outflows from ABSG UBA and Zenith Bank accounts … 164 4.3.1 Proprietary of payments/outflows from ABSG UBA accounts…………………………. 164 4.3.2 Proprietary of payments/outflows from ABSG Zenith Bank accounts………………. 178 4.3.3 Possible Conflict of Interest ………………………………………………………………………. 186 

4.4 Bank Charges and interests on credit facilities obtained by ABSG from UBA, Zenith  Bank and Union Bank ………………………………………………………………………………. 191 

4.4.1 Bank Charges and Interests on Credit Facilities obtained from UBA ………………. 191 

4.4.2 Bank Charges, and Interests on Credit Facilities obtained by ABSG from Zenith  Bank………………………………………………………………………………………………………. 209 

4.4.3 Bank Charges, and Interests on Credit Facilities obtained by ABSG from Union  Bank………………………………………………………………………………………………………. 217 

5 Sale and Disposal of Public Assets ……………………………………………………………..220 5.1 Ministry of Lands, Survey and Urban Planning…………………………………………….. 221 5.1.1 Application for Land Allocation…………………………………………………………………… 222 5.1.2 Acceptance of Allocation Offer…………………………………………………………………… 226 5.1.3 Ongoing and Completed Allocation Process ……………………………………………….. 232 6 Utilisation of Funds from Federation Accounts Allocation Committee (FAAC) ……233 6.1 Overview………………………………………………………………………………………………… 233 6.2 Total allocations received from FAAC accounts …………………………………………… 234 6.3 Utilisation of Funds from FAAC………………………………………………………………….. 237

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

6.4 Total Inflows and Outflows in the FAAC accounts………………………………………… 237 6.5 Utilisation of Outflows from the FAAC accounts …………………………………………… 238 6.5.1 Inter-account transfers – ₦399,709,644,824.66 …………………………………………… 238 6.5.2 Loan repayments & CFFs – ₦44,003,054,478.44 ………………………………………… 239 6.5.3 Inter-bank transfers – ₦16,602,573,445.57 …………………………………………………. 239 6.5.4 FIRS (WHT and VAT) – ₦1,904,500,000.00………………………………………………… 240 6.5.5 MDAs – ₦1,490,657,214.00………………………………………………………………………. 240 6.5.6 Government House & Officials – ₦1,169,527,000.00……………………………………. 241 6.5.7 Contractors – ₦634,603,822.80…………………………………………………………………. 243 6.5.8 Other ABSG bank transfers – ₦341,900,000.00…………………………………………… 243 6.5.9 Bank Charges – ₦135,215,596.92 …………………………………………………………….. 244 6.6 Possible Collusion or Conflict of Interest …………………………………………………….. 244 

7 Utilisation of credit facilities obtained by ABSG from UBA, Zenith Bank and Union  Bank………………………………………………………………………………………………………..245 

7.1 Utilisation of Credit Facilities obtained from UBA …………………………………………. 245 7.1.1 ₦2,836,031,308.74 ASUBEB Counterpart Fund…………………………………………… 245 7.1.2 ₦600,000,000.00 Counterpart Fund …………………………………………………………… 245 7.1.3 ₦6,000,000,000.00 Counterpart Fund ………………………………………………………… 246 7.1.4 ₦1,519,884,078.68 ASUBEB Counterpart Fund…………………………………………… 250 7.1.5 ₦1,000,000,000.00 Term loan …………………………………………………………………… 250 7.1.6 ₦500,000,000.00 Term loan ……………………………………………………………………… 250 7.1.7 ₦4,000,000,000.00 Term loan …………………………………………………………………… 251 7.1.8 ₦500,000,000.00 Term loan ……………………………………………………………………… 252 7.1.9 ₦500,000,000.00 Term loan ……………………………………………………………………… 252 7.1.10 ₦1,025,000,000.00 COVID-19 Health-Care intervention……………………………….. 253 7.2 Utilisation of Credit Facilities obtained from Zenith Bank……………………………….. 253 7.2.1 ₦1,000,000,000.00 Term Loan………………………………………………………………….. 254 7.2.2 ₦1,000,000,000.00 Counterpart Fund ………………………………………………………… 255 7.2.3 ₦1,000,000,000.00 Term Loan………………………………………………………………….. 255 7.2.4 ₦500,000,000.00 Term Loan…………………………………………………………………….. 257 7.2.5 ₦849,652,990.72 Term Loan…………………………………………………………………….. 257 7.2.6 ₦376,440,000.00 Term Loan…………………………………………………………………….. 257 7.2.7 ₦600,000,000.00 Term Loan…………………………………………………………………….. 258 7.2.8 ₦170,000,000.00 Term Loan…………………………………………………………………….. 258 7.3 Utilisation of Credit Facilities obtained from Union Bank ……………………………….. 258 7.3.1 ₦1,250,000,000.00 COVID-19 Health-Care intervention……………………………….. 258 8 Collection and Utilisation of IGR by ASBIR……………………………………………………261 8.1 Overview………………………………………………………………………………………………… 261 8.2 Quantum of IGRs Collected………………………………………………………………………. 262 8.2.1 Collections through Paydirect – ₦44,091,898,621.13……………………………………. 263

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

8.2.2 Direct Collections – ₦18,119,611,724.76 ……………………………………………………. 266 8.2.3 PAYE Collections – ₦16,145,863,431.19 ……………………………………………………. 267 8.2.4 Specific Collections – ₦2,175,308,111.58 …………………………………………………… 268 8.2.5 Other Collections – ₦571,053,232.29…………………………………………………………. 269 8.3 Utilisation of IGR Collections by ASBIR………………………………………………………. 270 8.3.1 Utilisation of Paydirect Collections – ₦44,091,898,621.13 …………………………….. 270 8.3.2 Utilisation of Collections through bank accounts – ₦20,294,919,836.34………….. 282 8.4 Possible Collusion or Conflict of Interest …………………………………………………….. 288 8.5 Movement of Collections by ASBIR……………………………………………………………. 289 9 Improvement Opportunities and Recommendations……………………………………….290 10 Appendices ………………………………………………………………………………………………302 10.1 Sources and description of records obtained……………………………………………….. 302 10.2 Details of the CBN Extant Guidelines …………………………………………………………. 304 10.3 Net Movement Analysis ……………………………………………………………………………. 306 10.4 List of 73 Sampled Contractors………………………………………………………………….. 313 10.5 Screenshot of Inactive Status with CAC ……………………………………………………… 317 10.5.1 Amatec Integrated Service Ltd…………………………………………………………………… 317 10.5.2 Seafair Projects Ltd …………………………………………………………………………………. 317 10.5.3 Conduit Resources Ltd …………………………………………………………………………….. 317 10.5.4 Fincep Construction Company Ltd……………………………………………………………… 318 10.5.5 Pal Bese Global Enterprises Ltd………………………………………………………………… 318 10.5.6 Worldcorp Nigeria Limited Ltd……………………………………………………………………. 318 10.5.7 Track Care Global Construction…………………………………………………………………. 319 10.5.8 Tunnel End Investment Company Limited…………………………………………………… 319 10.5.9 Ferotex Construction Company …………………………………………………………………. 319 10.5.10 Ekcleen Integrated Services Nigeria Limited………………………………………………. 320 10.5.11 Rock-Waters Integrated Service Nigeria Limited ………………………………………… 320 10.5.12 Delhope Resources Limited …………………………………………………………………….. 320 10.5.13 Arab Contractors Limited…………………………………………………………………………. 321 10.5.14 Yodel Global Resources Limited ………………………………………………………………. 321 10.5.15 Pro-M Limited ………………………………………………………………………………………… 321 10.5.16 Logistics De-Luke Limited ……………………………………………………………………….. 322 10.6 Screenshot of the CBN Extant Guidelines…………………………………………………… 323 10.7 Details of Sample Payments Reviewed………………………………………………………. 325 10.8 List of TODs in FAAC and VAT accounts ……………………………………………………. 325 10.8.1 TODs in FAAC account…………………………………………………………………………….. 325 10.8.2 TODs in VAT account ………………………………………………………………………………. 332 10.9 Breakdown of 16 CFFs UBA provided offer letters ……………………………………….. 336 10.10 Schedule of Review of 91 Land Allocation Files…………………………………………… 337

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

10.11 List of identified FAAC accounts………………………………………………………………… 341 10.12 Schedule of Accounts Utilised by ASBIR…………………………………………………….. 342 10.13 Damaged Payment Vouchers……………………………………………………………………. 344 10.14 Non Compliance in contract process ………………………………………………………….. 345 10.15 Possible Conflict of Interest ………………………………………………………………………. 358

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Glossary of Terms 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

We have listed the descriptions and explanations of terms and abbreviations used in this  report in the table below. However, these descriptions and explanations serve to clarify our  report and are not intended to be authoritative. Positions / designations are as at the date of  the report, unless otherwise indicated.

Abbreviation Meaning
ABSG or the State Abia State Government
Access Bank Access Bank Plc and Defunct Diamond Bank Plc
AG Accountant-General, Abia State
Ag. Chairman, ASBIR Mr. Peacebe Ukaegbu, Acting Chairman, ASBIR up till 24  September 2023
Annual Reports Annual Reports of the Accountant General
ASBIR Abia State Board of Internal Revenue 
ASOPADEC Abia State Oil Producing Areas Development  Commission
ASPIMSS Abia State Passengers Integrated Manifest and Safety  Scheme
ASUBEB Abia State Universal Basic Education Board
BIR Board of Internal Revenue
BPP Bureau of Public Procurement
C of O Certificate of Occupancy
CBN Central Bank of Nigeria
CFF Contractor Finance Facility
Chairman, ASBIR Prof. Udochukwu Ogbonna, Executive Chairman, ASBIR
Chief Accountant, Cash Office Mrs. Sandra Nnamdi Offor, Chief Accountant, Cash  Office, Office of the Accountant General, Abia State
Citibank Citibank Nigeria Limited
Commissioner, Ministry of  Lands and HousingHonourable Commissioner Chaka Chukwumereije,  Ministry of Lands and Housing
DAP Mrs. Chinakwalam Obi Elechi, Director of Account  Productions, Office of the Accountant General, Abia State
DF, ASBIR Mrs. Chioma Orikara, Director of Finance, ASBIR
DF, ASPHCDA Mrs. Nancy, Director of Finance, Abia State Primary  Health Care Development Agency
DF, Ministry of Health Mr. Ikechukwu Nwabuko, Director of Finance, Ministry of  Health

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Abbreviation Meaning
DF, Ministry of Housing Mr. Alfred Diegwu, Ministry of Housing (now Ministry of  Lands and Housing)
DF, Ministry of Lands Mr. Godwin Nwangaga, Director of Finance, Ministry of  Lands
DF, Ministry of Transport Mrs. Chinyere Kalu, Director of Finance, Ministry of  Transport
DF, Ministry of Works Mr. Vincent Uwajimgba, Director of Finance, Ministry of  Works
Director of Administration,  Office of the AGMr. Akobundu N. Raphael, Director of Aministration,  Office of the AG
Director of Collections, ASBIR Mrs. Anthonia Ukaegbu, Director of Collections, ASBIR
Director of Lands, Ministry of  Lands and HousingMr. Austine O. Ucheibe, Director of Lands, Ministry of  Lands and Housing
Director of Transport, Ministry  of TransportComrade O. Uleka, Director of Transport, Ministry of  Transport
DMB Deposit Money Bank
DPRS, Ministry of Education Mrs. Ngozi , Director of Planning, Research and  Statistics, Ministry of Education
DPRS, Ministry of Works Mr. Denwoha Udobi, Director of Planning, Research and  Statistics, Ministry of Works
DPRS, Office of the Governor Mr. Godknows Ikpeama, Director of Planning, Research  and Statistics, Office of the Governor
DQS, Ministry of Lands and  HousingEngineer Ralph Uche Owoh, Director of Quantity Survey,  Ministry of Lands and Housing
Ecobank Ecobank Nigeria Limited
EFCC Economic and Financial Crimes Commission
Exco State Executive Council
F&GPC Finance & General Purpose Committee
FAAC Federation Account Allocation Committee
FBNQuest FBNQuest Limited
FCMB First City Monument Bank Limited
FGN Federal Government of Nigeria
Fidelity Bank Fidelity Bank Plc 
FIRS Federal Inland Revenue Service
FirstBank First Bank of Nigeria Limited
FMF Federal Ministry of Finance

10 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Abbreviation Meaning
FSDH Merchant Bank FSDH Merchant bank Limited
GIS Geographic Information Science
Globus Bank Globus Bank Limited
Greenwich Merchant Bank Greenwich Merchant Bank Limited
Group Head, Government and  Social Services, InterswitchMr. Osasere Atohengbe, Group Head, Government and  Social Services, Interswitch
GTBank Guaranty Trust Bank Limited
Head of ICT, ASBIR Mr. Emmanuel Alozie, Head of ICT, ASBIR
Heritage Bank Heritage Bank Plc
IGR Internally Generated Revenue
Immediate Past AG Mr. Kelechi C. Imeoria – Accountant-General, Abia State  from July 2018 to May 2023
Immediate Past Cashier Mr. Kelechi C. Imeoria – Cashier, Abia State from May  2015 to July 2018
Interswitch Interswitch Group
ISO Independent Service Organisation
ISPO Irrevocable Standing Payment Order
ITT Invitation to tender
Keystone Bank Keystone Bank Limited
KPMG KPMG Advisory Services
Ltd Limited
MDAs Ministries Departments and Agencies
MDG Millenium Development Goals
Ministry of Lands and Housing Formerly Ministry of Lands, Survey and Urban Planning,  and Ministry of Housing up till 28 May 2023
MoJ Ministry of Justice
MoU Ministry of Understand
MTB Ministerial Tenders Board
NBS National Bureau of Statistics
NEFT NIBSS Electronic Funds Transfer
NGN or ₦ Nigerian Naira
Nova Merchant Bank Nova Merchant Bank Limited
OAGF Office of the Accountant-General of the Federation

11 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Abbreviation Meaning
Parallex Bank Parallex Bank Limited
Pay Officer, TPO Mrs. Angela Edward, Pay Officer, TPO
PAYE Pay As You Earn
PEP Politically Exposed Persons
Perm. Sec., Ministry of Rural  DevelopmentMr. Onyema Abarikwu, Permanent Secretary, Ministry of  Rural Development, Cooperatives and Poverty Reduction
Plc Public Limited Company
Polaris Bank Polaris Bank Limited
PPIDF Physical Planning and Infrastructure Development Fund
Premium Trust Bank Premium Trust Bank Limited
Providus Bank Providus Bank Limited
PVS Payment Voucher Substitute
Rand Merchant Bank Rand Merchant Bank Nigeria Limited
Sales Executive, South and  Southeast, InterswitchMr. Samuel Ngah, Sales Executive, South and South  East, Interswitch
Secretary, ASBIR Mr. Ibeawuchi Adindu, Secretary, ASBIR
Secretary, F&GPC Mr. Onyebuchi Ajomiwe, Secretary, Finance & General  Purpose Committee
SSG Secretary to the State Government
Stanbic IBTC Bank Stanbic IBTC Bank Plc
Standard Chartered Bank Standard Chartered Bank Nigeria Limited
State Cashier Mr. Okechukwu Gberemakor, Current State Cashier,  Office of the Accountant General, Abia State
Sterling Bank Sterling Bank Plc
Sub-treasurer, TPO Mrs. Chika Onukwube, Sub-treasurer, TPO
Surveyor General, Ministry of  Lands and Housing Engineer Anthony Ivonye, Ministry of Lands and Housing
TAMA Tax Audit Monitoring Agent
TCC Tax Clearance Certificate
Titan Trust Bank Titan Trust Bank Limited
TOD Temporary Overdraft Facility
TPO Treasury Pay Office, Abia State
Transport Officer, GHUM Emenike Njoku, Transport Officer, Government House,  Umuahia

12 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Abbreviation Meaning
UBA United Bank for Africa Plc
UBA Branch Manager Jude Ugwu, UBA Branch Manager, Umuahia
Union Bank Union Bank of Nigeria Plc
Unity Bank Unity Bank Plc
USSD Unstructured Supplementary Service Data
VAS Value Added Service
Wema Bank Wema Bank Plc
Zenith Bank Zenith Bank Plc

13 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

1 Introduction 1.1 Background 

Abia State Government 

Provision of Process Review Services  Project Azumini – Final Report of Factual Findings March 2024  

a. The administration of Abia State, which was inaugurated on 29 May 2023, has requested KPMG, via the engagement letter dated 13 July 2023 executed between KPMG and ABSG, to provide process review services to ABSG, focusing on the under listed scope areas and objectives, to cover the period from 29 May 2015 to 28 May 2023, unless otherwise indicated. 

1.2 Objectives

S/N Scope Area Objective
Contracts Awarda. Ascertain whether due process was followed or not, in the selection of contractors, award of contracts and payments to the contractors by ABSG. In addition, identify any possible collusion with beneficiaries.
Bank Accounts Period of review: a. UBA: 29 May 2015 – 28 May 2023. b. Zenith Bank and Union Bank: 1 January 2020 – 28 May 2023. These two (2) banks  were audit clients of  KPMG up to 31  December 2019.a. Identify the signatories and ascertain the bank balances of ABSG with all banks in Nigeria as at 28 May 2023, via circularisation only. b. Ascertain if there is any misappropriation in the payments made from UBA and Zenith Bank accounts to the beneficiaries. Also identify any possible collusion with the beneficiaries. c. Determine if there is any overcharge of interest and/or charges by UBA, Zenith Bank and Union Bank on current, deposit, escrow or investment accounts, as well as credit facilities granted to the State.
Sale and Disposal of Public  Assetsa. Determine adequacy or otherwise of the governance and operational process followed in the disposal, retirement and/or write-offs of fixed assets, in accordance with relevant ABSG’s policies and procedures.

14 

© 2024  

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Scope Area Objective
4Utilisation of Funds from  Federal Account Allocation  Committeea. Determine the total allocation received from FAAC  and ascertain utilisation therefrom, with a view to  identifying any misappropriation and/or leakages  in the flow of receipt and utilisation. In addition,  identify any possible collusion with the  beneficiaries.
5Utilisation of Credit  Facilities obtained by  ABSG from UBA, Zenith  Bank and Union Banka. Ascertain the total credit facilities obtained by the  State Government from UBA, Zenith Bank and  Union Bank and determine if they were utilized for  the intended purposes. In addition, identify any  possible collusion with the beneficiaries.
6Collection and Utilisation of  IGR by ASBIRa. Establish the quantum of the IGR collected by  ASBIR and identify any misappropriation and/or  leakages in the process of collection, transfer  and/or utilisation. In addition, identify any possible  collusion with the beneficiaries.

1.3 Nature of our assignment 

a. This assignment was not performed by us in the capacity of a statutory auditor. Hence,  this is not any form of financial statements audit of ABSG or any entity listed in the  report. We are therefore not required to render an opinion on the financial statements  of ABSG or any entity listed in the report. 

b. Rather, we have performed the procedures we considered appropriate in the  circumstances and in line with relevant KPMG methodology. 

c. We were also not required to review the adequacy or otherwise of the output of the prior  or current external auditors and/or consultants of ABSG, and did not perform any of the  following: 

i. Conduct a trial and / or inquiry in the course of the assignment. 

ii. Act as a tribunal, commission of inquiry or in judicial or quasi-judicial role. iii. Perform, any adjudicatory function whatsoever in the course of the assignment. 

iv. Conduct any exercise with a view to determining whether any person was guilty or  innocent of any offence.

15 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services  Project Azumini – Final Report of Factual Findings March 2024  

1.4 Period under review 

a. The procedures performed by us are relevant to events / documentation covering the period from 29 May 2015 to 28 May 2023, unless otherwise stated in this report. Specifically, the period under review for Zenith Bank and Union Bank is from 1 January 2020 to 28 May 2023 as the two (2) banks were KPMG audit clients up to 31 December 2019. 

1.5 Limitations and subsequent events 

a. We have included and records information relevant to the scope of work and objectives in line with the executed engagement letter of 13 July 2023, and as provided by the relevant MDAs of ABSG and the banks. Notwithstanding the foregoing, it is possible that documents and / or information exist, which were not made available to us. 

b. The provision of additional documents and / or information after submission of this final report will however attract a separate fee and timeline discussion between KPMG and ABSG. 

c. For ease of understanding of this report, specific limitations (if any) are stated in the relevant sections of this report. 

1.6 Legal advice 

a. Although our report may contain references to relevant laws and regulations, we do not provide legal opinion on compliance with such laws and regulations. 

b. Our discussion of the relevant laws and regulations is intended solely to facilitate the determination of applicable facts, which may be relevant to the interpretation and/or application of such laws and regulations. 

c. Should such interpretation require legal advice, we recommend that ABSG obtain an independent legal advice. 

1.7 Procedures Performed 

To achieve the objectives of the process review, we performed the following activities: 

1.7.1 Contract Awards 

a. Held discussions with the under-listed officials of ABSG to obtain an understanding of the contract award process: 

i. DPRS, Ministry of Works 

ii. DF, Ministry of Works 

iii. Secretary, F&GPC

16 

© 2024  

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

iv. Director of Quantity Survey, Ministry of Housing1 

v. DF, Ministry of Health 

b. Reviewed the following records to understand the contracting and payment process. i. Abia State Public Procurement Law 2012 

ii. Abia State financial regulations (as amended in 2001) 

c. Analysed schedules of contracts awarded during the period under review to determine  in-scope contracts from the following sources: 

i. F&GPC 

ii. Ministry of Works 

iii. Ministry of Lands & Housing 

iv. Office of the Governor 

v. Education 

vi. Abia State e-procurement website1F1F2 (now defunct) 

d. Reviewed the under-listed supporting documents provided for sample contracts, focusing  on business justification, approval process, and completion of project, in line with the  relevant policies, procedural manuals and practices. 

i. Tender Documents 

ii. Bid Submissions 

iii. Jobbing Order 

iv. Contract Agreements 

v. Minutes of MTB 

vi. Award Letters 

vii. Interim Certificates 

viii. Final Completion Certicate 

ix. Payment Vouchers 

e. Reviewed and analysed the bank account statements received from 35 circularised  banks to determine payments to contractors for the period under review. 

f. Reviewed the following records from ABSG Cash Office, Admin Office, Office of the AG, UBA and Access Bank to ascertain total payments to contractors through CFF: 

1 Ministry of Lands and Ministry of Housing has been merged into Ministry of Lands and Housing in the new  administration. 

2 Retrieved on 5 August 2023 from Contract Award Publication | Abia State Government.

17 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

i. Schedules (containing facility amount, interest rate, tenor, repayment etc.) of credit  facilities obtained by ABSG. 

ii. Offer letters, ISPOs and repayment schedules to determine the purpose of the CFF and total payments to contractors through CFFs. 

g. Performed desktop search and reviewed the nominal roll to identify possible relationships  and/or collusion between officials of the State and the beneficiaries of the payments on  the selected contracts. 

h. Held discussions with the under-listed officials of UBA to provide outstanding records  relating to CFF and payments made directly from ABSG bank accounts. 

i. Alex Alozie – Executive Director / Group Chief Operating Officer, UBA Group.  ii. Nnaemeka Longman – Regional Head, East Bank, UBA Group. 

iii. Chukwuka Agbo – Zonal Head, East Bank, UBA Group. 

iv. Jude Ugwu – Business Unit Manager, UBA Factory Road Branch, Abia State. 

1.7.2 Bank Accounts 

a. We performed the following activities to identify the signatories and ascertain the State’s  account balances with the banks in Nigeria as at 28 May 2023. 

i. Compiled a list of 35 licensed banks in Nigeria, per CBN Financial Institutions (DMB)  reports as at 28 May 2023. 

ii. Circularised the 35 banks, requesting bank mandates, bank balances and account  statements for accounts maintained by ABSG with banks covering the period of  review. 

iii. Reviewed the bank mandates received from the banks and identified the signatories  for accounts maintained by ABSG with the banks. 

iv. Analysed the bank account statements received from the banks to determine the net  movements for the period under review, and bank balances as at 28 May 2023. 

v. Reviewed samples of payments from the banks to reconcile the authorised signatories per list of signatories provided by banks, with the signatories on the  sample payment records. 

b. We performed the following activities to ascertain if there is any indication of  misappropriation in the payments made from UBA and Zenith Bank accounts to the  beneficiaries. Also identify any possible collusion with the beneficiaries. 

i. Held discussions with the under-listed officials to better understand the payment  approval and authorization process. 

▪ Director of Account Productions 

▪ State Cashier

18 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

▪ Chief Accountant Cash Office 

▪ Sub-treasurer, TPO 

▪ Pay Officer, TPO 

ii. Reviewed the following records to ascertain if there is any indication of  misappropriation in the payments from UBA and Zenith Bank: 

▪ Requested bank account statements3 for all accounts maintained by ABSG with  UBA and Zenith Bank. 

▪ ABSG annual budget covering the period from 2015 to 2023. 

▪ ABSG payment vouchers and cheque registers covering the period from 2015  to 2023. 

▪ ABSG nominal roll covering the period from 20184 to 2023. 

▪ Supporting documents such as payment advice, e-payment bank mandate,  award letters, tenders, quotations, job completion certificates, invoices, receipts,  etc. for payments made by ABSG to various beneficiaries. 

iii. Performed desktop search and reviewed the nominal roll to identify possible  relationships and/or collusion between officials of the State and the beneficiaries of  the payments from UBA and Zenith Bank. 

c. We performed the following to determine if there is any overcharge of interest and/or  charges by UBA, Zenith Bank and Union Bank on current, deposit, escrow, or investment  accounts5, as well as credit facilities granted to ABSG. 

i. Obtained the following records from ABSG Cash Office to ascertain total credit  facilities obtained by ABSG during the period under review: 

▪ Schedules (containing facility amount, interest rate, tenor, etc.) of credit facilities,  obtained by ABSG from UBA, Zenith Bank and Union Bank. 

▪ Offer letters, addendums, correspondences, amortization / repayment schedules,  loan history records, rate history for the facilities in the schedule provided by  ABSG Cash Office. 

ii. Reviewed the following records obtained from UBA, Zenith Bank and Union Bank: 

▪ Schedule (including facility amount, interest paid, outstanding fees and charges,  and the outstanding balance) of all credit facilities, obtained by ABSG from the  aforementioned banks during the period under review. 

READ ALSO:  "Abia State CID Wasn't Attacked" -PPRO Gives Factual Account, Casualties

3 See Appendix 10.3 for details of all accounts maintained by ABSG. 

4 ABSG did not provide the nominal roll from 2015 to 2017. 

5 ABSG did not maintain deposit, escrow, or investment accounts with the three (3) banks.

19 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

▪ Offer letters, addendums, correspondences, amortization / repayment  schedules, loan history records, rate history for the facilities in the schedule  provided by UBA, Zenith Bank and Union Bank. 

iii. Compared the list of credit facilities noted per ABSG’s Cash office records with the  schedule of credit facilities provided by the three (3) banks, to ascertain completeness. 

iv. Analysed loan disbursements into the bank accounts maintained by ABSG with the  three (3) banks, to ascertain if there were credit facilities not captured in the records  provided by ABSG and the three (3) banks. 

v. Reviewed offer letters, correspondences, amortization/repayment schedules, rate  history for the facilities sighted in the bank account statements that were not captured  in the schedule provided by the three (3) banks and ABSG’s Cash office. 

vi. Consulted the extant CBN guidelines and circulars on bank charges and benchmark  against the amount charged by the three (3) banks, and independently reviewed and  analysed the fees, and payments on the credit facilities, in line with the executed offer  letters and extant CBN guidelines. 

iv. Held discussions with the under-listed officials of UBA and Zenith Bank to reconcile  the draft findings on analysis of bank statements and credit facilities obtained by  ABSG from the two (2) banks: 

UBA 

▪ Alex Alozie – Executive Director / Group Chief Operating Officer, UBA Group. ▪ Nnaemeka Longman – Regional Head, East Bank, UBA Group. 

▪ Chukwuka Agbo – Zonal Head, East Bank, UBA Group. 

▪ Jude Ugwu – Business Unit Manager, UBA Factory Road Branch, Abia State. Zenith Bank 

▪ John Onyike – Zenith Bank Zonal Head, Abia 2 Zone. 

▪ Ngozi Onyekwue – Zenith Bank Relationship Service Manager, Umuahia 2 Branch. 

▪ Kenneth Ibe – Zenith Bank Relationship Service Manager, Umuahia 2 Branch. 

vii. Identified improvements opportunities in ABSG payment procedure and utilisation of  credit facilities. 

1.7.3 Sale and Disposal of Public Assets 

a. Held discussions with the under-listed officials to understand the asset disposal process and obtain schedule of public assets disposed if any. 

i. Commissioner of Lands and Housing

20 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

ii. Surveyor General, Ministry of Lands and Housing6 

iii. DF, Ministry of Lands7 

iv. DF, Ministry of Housing8 

v. Director of Lands 1, Ministry of Lands and Housing 

vi. Director of Quantity Survey, Ministry of Lands and Housing 

vii. DF, Ministry of Transport 

viii. DPRS, Ministry of Education 

b. Reviewed the provisions of the following laws guiding the disposal, write-offs and  retirement of assets. 

i. Abia State Public Procurement Law 2012 

ii. The Land Use Act 1978 

c. Reviewed schedules of assets covering public schools and vehicles from the following MDAs for the period under review to ascertain if the assets were disposed, retired and  or written-off.  

i. Ministry of Education 

ii. Government House 

d. Reviewed records of allocated lands for the period under review to determine the process  for the allocation of lands and ascertain if due process was followed. 

e. Reviewed the Annual Reports of the Accountant General for the years 2015-2022 to  identify assets that were disposed during the period under review. 

f. Perform desktop searches and vis-à-vis the nominal roll of ABSG officials during the  period under review to identify any possible conflict of interest and / or collusion with  beneficiaries. 

g. Identified improvements opportunities in ABSG’s sale and asset disposal process and  controls and the utilisation of IGR. 

1.7.4 Utilisation of Funds from Federation Accounts Allocation Committee (FAAC) 

a. We performed the following procedures to determine the total FAAC revenue allocation  received by ABSG during the period under review. 

6 Ministry of Lands and Ministry of Housing has been merged into Ministry of Lands and Housing in the new  administration. 

7 Now merged with Ministry of Housing. 

8 Now merged with Ministry of Lands.

21 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

i. Reviewed the provisions of applicable laws9 to better understand the provisions  guiding the revenue allocation by FAAC. 

ii. Analysed the following records: 

▪ FAAC accounts maintained by ABSG during the period under review10

▪ Monthly FAAC disbursement reports published on the Technical Subcommittee of FAAC. 

▪ Annual Reports of the Accountant-General from 2015 to 2022. 

▪ ABSG FAAC revenue schedule maintained from 2015 to 2023. 

▪ Monthly FAAC meeting reports111 sent to the State Governor from the Office of the  Accountant-General. 

▪ Monthly FAAC expenditure proposals12 

iii. Determined and reconciled the total net FAAC receipts into ABSG’s FAAC revenue  accounts during the period under review vis-à-vis the monthly FAAC disbursement  reports published by the Technical Subcommittee of FAAC. 

iv. Reviewed and reconciled the total net FAAC receipts with the statutory allocation  disclosures captured in the Annual Reports of the Accountant-General from 2015 to  2022. 

b. We performed the following activities to ascertain the utilisation of FAAC revenue  allocations received by ABSG during the period under review, with a view to identifying any indication of misappropriation and/or leakages in the flow of receipt and utilisation. 

i. Reviewed ABSG bank accounts that received inflows from the FAAC accounts. 

ii. Confirmed the receipt of the inter-account / inter-bank transfers from the FAAC  accounts in the receiving ABSG accounts. See details in section 6.5.1 of this report. 

c. Held discussions with the under-listed officials to better understand the collection and  utilisation of FAAC. 

i. State Cashier 

ii. Chief Accountant, Cash Office 

iii. Director of Accounts Production 

9 Revenue (Federation Account) No. 1 1982, The Constitution of the Federal Republic of Nigeria (1999 as  amended). 

10 See Appendix 10.11 for details of all FAAC accounts maintained by ABSG. 

11 ABSG provided records for 2017 (July-November), 2020 (January-April), 2021, 2022 and 2023 (January February). 

12 ABSG provided records for 2016 (March-December) and 2017.

22 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

d. Performed desktop searches and reviewed the nominal roll of ABSG officials during the  period under review to identify any possible conflict of interest and / or collusion with the  beneficiaries of the payments from the bank accounts above. 

e. Identified improvements opportunities in the collection and utiisation of FAAC allocation  to ABSG. 

1.7.5 Utilisation of credit facilities obtained by ABSG from UBA, Zenith Bank and Union Bank 

a. Reviewed the following: 

i. Schedule containing list of credit facilities obtained by ABSG from UBA, Zenith Bank,  and Union Bank. 

ii. Offer letters for credit facilities obtained from UBA, Zenith Bank and Union Bank to  determine the purpose of the credit facilities. 

iii. Supporting documents such as payment vouchers, payment advice, e-payment bank  mandates, cheques, award letters, tenders, quotations, job completion certificates,  invoices, receipts, etc. and justification (budget) for the utilisation of the credit  facilities. 

b. Reviewed the utilisation of funds received from credit facilities and reconciled the  utilisation with the purpose of the facilities stated in the offer letters, to ascertain if the  credit facilities were used for their intended purposes. 

c. Performed desktop search and reviewed the nominal roll to identify possible relationships  and/or collusion between officials of the State and the beneficiaries of the funds received  via the credit facilities. 

1.7.6 Collection and Utilisation of IGR by ASBIR 

a. Held discussions with the under-listed officials to better understand the process and  practice of collection and utilisation of IGR. 

i. Ag. Chairman, ASBIR 

ii. DF, ASBIR 

iii. Secretary, ASBIR 

iv. Head of ICT, ASBIR 

v. Director of Collections, ASBIR 

vi. Group Head, Government and Social Services, Interswitch 

vii. Sales Executive, South and Southeast, Interswitch 

b. Reviewed the following records:

23 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

i. Bank account13 statements for accounts maintained by ASBIR with 35 banks in  Nigeria. 

ii. ASBIR nominal roll covering the period from 2015 to 2023. 

iii. ASBIR IGR monthly reports covering the period from 1 June 2015 to 31 May 202314. to ascertain total IGR collections reported by ASBIR. 

iv. Abia State Tax Consolidation and Codification Law 2020. 

v. Appointment letters for TAMAs and other revenue enforcement consultants to  benchmark the engagement terms with the provisions of the Abia State Tax  Consolidation and Codification Law. 

vi. Letters of payment instructions from ASBIR to Interswitch. 

vii. Payment vouchers, transfer instructions and cheques for payments made from  ASBIR Zenith Bank overhead other charges bank account with account number  1013921818 between 1 June 2015 to 31 May 2023, to ascertain if there is any  indication of misappropriation in the payments made to beneficiaries. 

viii. Transfers from IGR collection accounts to the three (3) ASBIR overhead bank  account15 with Zenith, Fidelity and Access Bank from 1 June 2015 to 31 May 2023,  to ascertain total cost of collection by ASBIR. 

ix. Letters from the Office of the Governor authorising release of funds to various  beneficiaries to ascertain if there is appropriate approval before payments are made  to the respective beneficiaries. 

c. Spooled Paydirect settlement position reports covering the period from 1 June 2015 to  31 May 2023 in order to independently verify total IGR collections through Paydirect. 

d. Determined actual amount to be settled to the State by deducting relevant fees16 from  total cleared collections17

e. Reconciled actual amount to be settled to the State in (d) above with the remittable  amount contained in the Paydirect settlement position reports and noted any variance i.e., excess or shortfall in the amount to be settled to the State. 

f. Spooled Paydirect settlement split reports covering the period from 1 June 2015 to 31  May 2023 in order to independently verify beneficiaries of IGR collections through Paydirect. 

13 See Appendix 10.3 for details of all account statements provided by the circularised banks. 14 Although the State’s mandate is for the review to cover the period from 29 May 2015 to 28 May 2023. ASBIR  however prepares its reports monthly, and therefore could only provide monthly figures. 15 See Appendix 10.12 for details of ASBIR overhead bank accounts used for cost of collection . 16 Fees include fees paid to vendors engaged by ASBIR (i.e., ISO Fee, VAS Provider Fee and Terminal Owner  Fee), Collecting Banks Fee, Interswitch Fee and Lead Bank Fee. 

17 This refers to total collections through Paydirect by all collecting banks.

24 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

g. Traced the settlement amount contained in the Paydirect settlement split reports to nine  (9) bank accounts18 to identify leakages in the collection and remittance process. 

h. Analysed six (6) bank accounts19 maintained by ASBIR to ascertain specific IGR  collections. 

i. Analysed nine (9) bank accounts20 maintained by ASBIR for Paydirect collections to  ascertain IGR collections outside of Paydirect. 

j. Performed desktop search and reviewed the nominal roll to identify possible relationships  and/or collusion between officials of ASBIR and the beneficiaries of the payments from  ASBIR bank accounts. 

k. Documented process flowcharts to visualise the end-to-end process of collections of IGR  and payments to TAMA and other revenue enforcement consultants. 

l. Identified improvements opportunities in ASBIR’s revenue collection process and  controls and the utilisation of IGR. 

1.8 Sources and Description of Documents Obtained 

We did not perform any scientific test on any of the records and / or information provided to  us by ABSG and/or the circularised banks during this assignment, to ascertain their  authenticity, as this type of assignment does not require scientific test on the records.  Therefore, our review, analysis and examination of the records and information provided  were limited to the content of such records or information. 

1.9 Appendices 

We have collated copies of the documentation referred to in the footnotes to this report into  appendices and should be read in conjunction with the contents of this report. 

18 See Appendix 10.12 for details of accounts maintained by the State into which Paydirect settles IGR collections. 19 See Appendix 10.12 for details of ASBIR bank accounts used for specific IGR collections. 

20 See Appendix 10.12 for details of ASBIR bank accounts used for paydirect collections.

25 

© 2024 

KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG  International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

2 Executive Summary 

2.1 Contract Awards 

a. ABSG awarded 560 contracts to 23121 contractors during the period under review, with  520 contracts, having a cumulative contract value of ₦294,824,123,365.79. 

b. Notwithstanding that ABSG did not provide sufficient information to enable KPMG to: i. Determine the contract values of the remaining 40 of the 560 contracts. 

ii. Independently verify the accuracy and completeness of the ₦294,824,123,365.79  contract value of the 520 contracts. 

We analysed available records, noting the following: 

2.1.1 Payments to Contractors 

a. ABSG paid ₦131,877,519,592.0622 to the 231 contractors, via three (3) means i.e.,  CFFs (₦71,315,434,474.50), directly from ABSG bank accounts 

(₦59,467,035,117.5623), and procuring MDAs (i.e. Ministry of Works – 

₦927,200,000.00 and ASOPADEC – ₦167,850,000.00).  

b. We reviewed sample payments of ₦107,234,358,515.21 of the ₦131,877,519,592.06, noting the following exceptions amounting to ₦56,662,966,007.76: 

i. ₦15,936,522,309.43 – 6324 contractors with no supporting documents maintained  by the Cash Office, Office of the AG. 

ii. ₦12,800,851,500.00 – Four25 (4) contractors for contracts that do not appear to exist, per available records and discussions with relevant officials. These include: 

▪ ₦10,000,000,000 to Ferotex on 25 September 2020 for the “construction of  Abia State airport

▪ ₦2,000,000,000.00 on 6 June 2022 and 1 September 2022 to Logistics De Luke, for the delivery of 22 different brand-new vehicles”. 

iii. ₦9,279,800,000.00 – Seven26 (7) contractors with no records that the contracts  were executed, per schedules of contracts provided and discussions with relevant  officials. 

iv. ₦4,000,000,000.00, where substantial upfront payments (i.e. 92% of contract  value) was made to Track Care Global Construction for six (6) projects.  

21 Ministry of Works and Industry did not provide sufficient information to determine the contractors for 8 contracts. 22 Per the schedule of loans provided by Cash Office, offer letters provided by UBA and Access Bank, identifiable  transaction narrations in the 77 bank accounts in 14 banks and records provided by 7 Ministries. 23 It is important to note that there might be additional payments below ₦50,000,000.00 made to the contractors  not identified due to unidentifiable narrations such as “NEFT”, which is not included in our sampling. 24 See Appendix 11 in the excel workbook for the details of 63 contractors. 

25 See Appendix 12 in the excel workbook for the details of four (4) contractors. 

26 See Appendix 13 in the excel workbook for the details of seven (7) contractors.

26 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

Moreover, two (2) of the six (6) projects paid for, were still ongoing per the Ministry  of Works schedule, as at the date of this report. 

v. ₦1,100,000,000.00 – Tunnel End for four (4) of six (6) contracts that appear to  have been awarded / re-awarded to other contractors, even though Tunnel End  was paid for the six (6) contracts. 

vi. ₦7,461,585,866.44 – 4427 contractors using Payment Voucher Substitutes (PVS) instead of the required payment vouchers. 

vii. ₦3,978,304,675.45 – 4828 contractors with inadequate supporting documents maintained by the State i.e. any one of the payment vouchers, approvals from TPO,  budgetary allocation and e-payment bank mandates were not maintained. 

viii.₦1,057,776,656.44 – 1729 contractors but signed by only one of the two (2)  required signatories, contrary to ABSG mandates with UBA, Zenith Bank and  Access Bank. However, UBA and Zenith Bank provided regularised copies of the  payment vouchers, indicating that the second signatory also subsequently  

authorised the payment mandates. 

ix. ₦927,200,000.00 – 1430 contractors, but Ministry of Works did not provide any  supporting documents to determine the business justification for the payments. 

x. ₦120,925,000.00 – Six31 (6) contractors, where approval for the payments were  made after the payments to the contractors i.e., payments made before TPO  approval. 

2.1.2 Selection of Contractors and Award of Contracts 

a. The rate of non-compliance to due process relating to the selection of contractors and  award of contracts is 64%, for a sample of 95 contracts (85 contracts valued at  ₦157,344,353,425.87 through tendering and 10 contracts valued ₦5,000,683,974.00 through Direct Labour reviewed. Instances of non-compliance include: 

i. Six (6) MDAs did not provide “Certificate of No Objection” from the Bureau of  Public Procurement for 8232 contracts worth ₦156,759,362,425.87, contrary to  Section 21 (h) and Section 18 (4) of State Public Procurement Law.  

ii. Six (6) MDAs33 did not provide record of bid evaluation for 7234 of the 85  sampled contracts with a cumulative value of ₦98,570,680,828.07, contrary to  

27 See Appendix 14 in the MS Excel workbook for details of the 44 contractors. 

28 See Appendix 15 in the MS Excel workbook for details of the 48 contractors. 

29 See Appendix 16 in the MS Excel workbook for details of the 17 contractors. 

30 See Table 7.2.3.1 of the detailed report for details. 

31 See Appendix 17 in the MS Excel workbook for details of the 6 contractors. 

32 See Appendix 18 in the MS Excel workbook for details of the 82 contracts from 6 MDAs. 

33 Ministry of Works, Office of the Governor, Housing, ASOPADEC, Public Utilities and Water Resources and  Finance. 

34 See Appendix 19 in the MS Excel workbook for details.

27 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

Section 24 of Abia State Procurement Law and Section 3303 of the Abia State  

Financial Regulations. 

iii. No record that the Governor approved 3535 contracts amounting to  

₦83,382,082,143.10, in line with ABSG’s practice.  

iv. Ministry of Works awarded ₦2,831,458,377.40 worth of contracts to Arab  

Contractors for the “Reconstruction of Aba Road Umuahia from Enugu – Port  

Harcourt Express way junction to Railway Crossing at Old Umuahia”, without  

records of competitive bids, contrary to Section 26 (1) of the State’s Procurement  law.  

v. Ministry of Works awarded ₦1,418,714,000.00 contract for the “Construction of  Itukpa to Ossa Ukwu; Mgboko-Obete to Iheorji Road in Obingwa LGA” to Gemp  

Engineering, despite Gemp Engineering submitting bid after the due date of  

the ITT

In addition to the findings above, no sufficient records exist to identify if there was any  collusion with the beneficiaries of the afore-mentioned payments. Nonetheless, identified  possible conflict of interest is documented in section 2.2.4. 

2.2 Bank Accounts 

2.2.1 Signatories to bank accounts maintained by ABSG 

a. Contrary to ABSG mandates with the 14 banks, which require two (2) signatories for all  payment instructions/mandates, there are 132 instances (see Table 2.2.1 below) where  only one signatory authorised payments totalling ₦4,667,087,700.66 (i.e.,  

₦4,373,187,700.66 – UBA, ₦15,000,000.00 – Zenith Bank, ₦270,000,000.00 – Access  Bank and ₦8,900,000.00 – Polaris Bank) to various beneficiaries36

Table 2.2.1: Exceptions noted from the review of e-payment bank mandates vis-à-vis their authorised signatories 

S/N Signed only by: Number of  payments Amount (₦) Second Signatory that  did not sign Period
Immediate past State  Cashier (Kelechi Imeoria) 88 3,547,417,700.66 Former AG (Onyedielefu  Gabriel)29 May 2015 – 30 July 2018
Former AG (Onyedielefu  Gabriel)553,370,000.00 Immediate past State  Cashier (Kelechi Imeoria)29 May 2015 – 30 July 2018
State Cashier (Okechwukwu  Gberemakor) 36 509,400,000.00 The Immediate past AG (Kelechi Imeoria)31 July 2018 – 28 May 2023
The Immediate past AG (Kelechi Imeoria) 56,900,000.00State Cashier (Okechwukwu  Gberemakor)31 July 2018 – 28 May 2023
Total 132 4,667,087,700.66

Source: Compiled by KPMG from the records provided by the 14 banks. 

35 See Appendix 20 of the MS Excel workbook for details. 

36 See Appendix 10.7.

28 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

UBA and Zenith Banks’ Responses 

a. UBA and Zenith Bank confirmed the instances where they both made payments with payment  mandates signed by only one signatory, due to the unavailability of the second signatory, but  subsequently regularised upon the availability of the second signatory. 

b. However, UBA did not provide the regularised mandates for nine (9) payments (i.e. ₦179,870,000.000) out of its 122 instances. 

2.2.2 Bank Balances as at 28 May 2023 

a. During the period from 29 May 2015 to 28 May 202337, ABSG maintained 78 bank  accounts with 14 of the 3538 circularised banks, with a net credit balance of  ₦3,495,207,127.14 as at 28 May 2023. 

2.2.3 Review of payments by ABSG from UBA and Zenith Bank 

ABSG made the following payments that have exceptions: 

a. ₦85,781,077,523.68 (UBA) and ₦13,863,892,419.88 (Zenith Bank) – No payment  vouchers or payment instructions/mandates or both

b. ₦33,877,639,399.16 (UBA) and ₦2,337,420,000.00 (Zenith Bank) – Not supported  with payment vouchers but subsequently utilized payment voucher substitutes  (PVS), which are filled after the payments have been made, to regularize absence of  payment vouchers. 

c. ₦1,113,680,000.00 (UBA) payments were made before TPO approvals, while  ₦136,367,350.00 (UBA) were with no TPO approval

d. Cash withdrawals of ₦6,281,860,830.00 and ₦11,229,300,000.00 from Government  House accounts of UBA and Zenith Bank respectively. 

2.2.4 Possible Conflict of Interest 

a. Possible conflict of interest involving ten (10) ABSG officials39, who are directors in  seven (7) companies. The companies benefited from contracts awards amounting to  ₦203,625,000.00

2.2.5 Bank Charges and interest on Credit Facilities obtained from UBA, Zenith Bank  and Union Bank 

a. ₦211,290,712.10 – Due to Abia State from UBA, because of overcharge on COT and  Current Account Maintenance Fee, as well as interest on Term Loan, Temporary  Overdrafts and CFFs by UBA. 

37 Except as otherwise indicated in this report. 

38 These are list of licensed DMBs retrieved from CBN websites. 

39 See appendix 10.15 for details of the ten (10) ABSG officials and the seven (7) companies.

29 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

b. ₦443,734.43 – Due to Zenith Bank, based on undercharge of interest on Temporary  Overdrafts by Zenith Bank. 

c. ₦12,933,374.49 – Due to Union Bank, based on undercharge of interest on term loan  by Union Bank. 

2.3 Sale and Disposal of Public Assets 

a. Notwithstanding that ABSG’s 2015 to 2021 annual reports, reflect that the Ministry of  Transport disposed unserviceable vehicles amounting to ₦8,406,150.00, five (5) MDAs  circularised i.e., Housing, Transport, Education, Health and Government House; 

i. Reported that they did not sell or dispose any public assets. 

ii. Do not maintain asset register/schedule and therefore did not provide schedule of  any public assets disposed or sold. 

b. The above MDAs do not include the Ministry of Lands, Survey and Urban Planning,  who provided schedule of land allocation. Various exceptions noted in the allocation of  lands to 91 individuals and businesses include allotees, who did not submit application  letters, who submitted application letters after receiving offer letters, who did not pay  the application fees, etc. 

2.4 Utilisation of Funds from Federation Accounts Allocation Committee (FAAC)  2.4.1 Collection and Utilisation of Funds from FAAC 

Collection 

a. Excluding reversals of ₦28,963,869,442.72, the total net inflows and outflows from the  FAAC accounts are ₦468,356,645,293.64 and ₦465,991,676,382.39 respectively, with a consolidated closing balance of ₦2,169,406,016.88, as at 28 May 2023. 

b. Of the total net inflows of ₦468,356,645,293.64, ₦394,374,765,886.03 specifically  relates to FAAC Collection. 

Utilisation 

a. ₦462,219,772,748.67 comprising loan repayments, inter-account and inter-bank  transfers, as well as payments to FIRS appear to be legitimate40

b. ₦3,294,788,036.80 (68 payments) to MDAs, Government House (and some Officials) and Contractors were without supporting documents and contrary to the expected  outflows from the FAAC accounts (i.e., inter-account/inter-bank transfers, loan  repayments & CFFs, or bank charges)40

40 Exhibit 39 – Confirmation of Understanding between KPMG and the Chief Accountant, Cash Office, Office of  the AG dated 28 November 2023.

30 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

In addition to the findings above, no sufficient records exist to identify if there was any  collusion with the beneficiaries of the afore-mentioned payments. Nonetheless, identified  possible conflict of interest is documented in section 2.2.4. 

2.5 Utilisation of credit facilities obtained by ABSG from UBA, Zenith Bank and  Union Bank 

a. ₦12,462,841,836.43 (UBA) and ₦4,100,000,000.00 (Zenith Bank) Insufficient  records to determine if utilised as intended or not. 

b. ₦2,500,000,000.00 (UBA), ₦1,000,000,000.00 (Zenith Bank) and ₦250,000,000.00  (Union Bank) were not utilised as intended

i. UBA facilities were intended and obtained to either meet urgent security issues in the  State or urgent need for the payment of parastatals salaries and subvention.  However, they were all utilised to reduce the overdraft balance in the FAAC Accounts. 

ii. No records reflecting that the ₦250,000,000.00 obtained from Union Bank was  utilised for the payment of salaries of health workers as stated in the offer letter. 

In addition to the findings above, no sufficient records exist to identify if there was any  collusion with the beneficiaries of the afore-mentioned payments. Nonetheless, identified  possible conflict of interest is documented in section 2.2.4. 

2.6 Collection and Utilisation of IGR by ASBIR  

a. ASBIR reported IGR collections of ₦81,103,735,120.95 instead of ₦82,610,062,727.79  for the period from 1 June 2015 to 31 May 2023. The ₦1,506,327,606.84 not reported  was however noted in the bank statements.  

b. Interswitch did not remit ₦27,164,671.09 IGR collections due to the State.  

c. ₦1,653,922,058.57 vendors’ fee paid/deducted from IGR, has the following  exceptions

i. ₦649,787,065.21 represents over-payment to Atolok. Contrary to the appointment  letter dated 17 August 2020, instructed Interswitch to settle 5% and 6.7% of the total  IGR Collections to Atolok on 30 December 2020 and 12 February 2021 respectively,  instead of the 1.7% of total IGR Collections and 5% in excess of ₦600,000,000.00  contained in the appointment letter dated 17 August 2020. 

ii. ₦503,552,134.36 is for ByteWorks, covering 1 October 2022 to 31 March 2023, was  not supported with a contract agreement. However, the Secretary, ASBIR stated that  ByteWorks rendered the service during the period.  

iii. ₦500,582,859.00 was deducted and paid to Marabef, without any Letter of Instruction  supporting the deduction.  

iv. ₦2,279,572,500.00 (105 payments) were based on release letters from the Office of  the Governor to certain Individuals, Contractors and MDAs without other documents  supporting the payments.

31 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

v. ₦891,521,642.13 transferred to MDAs was based on a written approval from the  Office of the Governor, stating that 20% of IGR collected by revenue generating  MDAs be paid to such MDAs41, but no law supporting the Governor’s approval was  provided. 

vi. ₦135,494,385.23 (Local Government) – The DF, ASBIR stated that the payment  relates to Abia Property and Land Use Charge paid to local governments in the State.  

d. Other observations include: 

i. Non-maintenance of schedule of ASBIR bank accounts, as required by Abia State  Tax Consolidation and Codification Law of 2020. 

ii. IGR collections through USSD paid into an unrelated account i.e., BIR Mbaisii Land  Acquisition account. 

iii. Non-reconciliation of Paydirect collections and settlement. 

iv. Non-compliance with the Law on remittance of IGRs into only one (1) dedicated  account. Rather, ASBIR remitted IGR collections into seven (7) accounts maintained  by the Office of the AG (3) and ASBIR (4). 

In addition to the findings above, no sufficient records exist to identify if there was any  collusion with the beneficiaries of the afore-mentioned payments. Nonetheless, identified  possible conflict of interest is documented in section 2.2.4. 

41 See section 8.3.2.1.3 for the details of cost of collections to the eight (8) MDAs.

32 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

Detailed Findings 

33 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

3 Contract Awards 

Objectives: Ascertain whether due process was followed or not, in the selection of  contractors, award of contracts and payments to the contractors by ABSG. In addition,  identify any possible collusion with beneficiaries. 

3.1 Contracting Process 

Per review of Abia State Public Procurement Law 2012 and Financial Regulations 2001, as  well as process understanding discussions with relevant ABSG officials42, ABSG’s  contracting process is as follows:  

a. The contract award process could either be initiated by the procuring Ministry through a  letter to the Governor or by the State Governor directly.  

b. The State Governor directly identifies projects, due to the strategic and economic need  of the State, and then mobilizes the Ministry to commence the contracting process. 

c. The procuring Ministry also initiates a request through a letter to the State Governor  requesting for approval to commence a project, which would have been budgeted for in  ABSG’s Annual Budget. 

d. The procuring Ministry advertises and solicits for bids through the following procurement  methods: 

i. Selective Tendering 

The procuring Ministry selects existing contractors based on the contractors previous  performance and capacity to deliver on the contract. This process is considered,  where the project is urgent or upon urgent request of the State Governor and the  general tendering process is assessed to be time consuming. 

ii. Open Competitive Bidding 

The procuring Ministry advertises for bids in the State’s newspaper, on its notice  board, at least two national newspapers and any official website of the procuring  entity. 

e. The Procuring entity utilizes the period between advertisement and bid submission  deadline to prepare in-house estimates. 

f. The Ministerial Tenders Board (MTB) opens submitted bids in the presence of the  procuring Ministry and bidders or their representatives.  

g. The MTB evaluates the submitted bids and forwards a brief of the meeting (which  includes the analysis of the tenders and the recommended contractor) to the State’s  Tenders Board, referred to as Finance and General Purpose Committee (F&GPC),  where the contract is ₦50,000,000 and above for consideration. 

42 Exhibit 1 – Confirmation of Understanding between KPMG and the DPRS and DF in the Ministry of Works  dated 7 July 2023.

34 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Process Review Services Project Azumini – Final Report of Factual Findings March 2024 

h. F&GPC reviews and ratifies the tender documents forwarded and then sends to the State  Executive Council (Exco) for final approval. 

i. Upon final approval, the Secretary, F&GPC issues contract award letter to the  Contractor. 

3.2 Contract Award – MDA’s View 

a. Per the schedule of contracts provided by the relevant MDAs43, F&GPC and downloaded  from Abia State E-Procurement Website44, ABSG awarded 560 contracts to 23145 contractors during the period under review. Of the 560 contracts, 520 had a cumulative  contract value of ₦294,824,123,365.79, while information provided by ABSG is  insufficient to determine the contract value of the remaining 40 contracts, as well as to  independently verify the accuracy and completeness of the ₦294,824,123,365.79. See  table 3.2 for details. 

 Table 3.2: Summary of 520 Contracts awarded by ABSG  

S/N MDA Number of  Contracts Contract Value (₦)
Works 227 269,812,168,888.95 
Office of the Governor 25 6,755,456,674.55 
Housing46 32 5,778,511,591.00 
ASOPADEC 140 3,744,462,630.00
Public Utilities and Water Resources47 14 1,843,745,107.70 
Education 28 1,636,522,900.00 
Environment 1,503,935,200.00 
Local Government and Chieftaincy Affairs 1,200,861,604.87 
Youth and Sports Development 1,200,000,000.00 
10 Health 44 829,364,626.00 
11 Industry48 250,095,000.00 
12 Finance 245,999,142.72 
13 Agriculture 23,000,000.00
Total 520 294,824,123,365.79

Source: Compiled by KPMG from records provided by ABSG. 

43 Ministry of Works, Housing, Education and Office of the Governor. 

READ ALSO:  UTOWN Entertainment, RAPID FM Seals Media Partnerships Deal Over ABIA CHRISTMAS VILLAGE | SEE PHOTOS

44 Retrieved on 5 August 2023 from Contract Award Publication | Abia StatEe Government. 

45 Ministry of Works and Industry did not provide sufficient information to determine the contractors for 8 contracts. 46 Now Ministry of Lands and Housing from 29 May 2023. 

47 Now Ministry of Power and Public Utilities from 29 May 2023. 

48 Now Ministry of Trade, Commerce and Industry from 29 May 2023.

35 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.3 Selection of Contractors and Award of Contracts – MDA’s View 

a. We selected a sample of 233 contracts amounting to ₦219,720,085,922.69 representing 75% of the total contract value, to ascertain  whether due process was followed or not. Six49 (6) of the 13 MDAs circularised did not provide supporting documents50 for 138 contracts,  amounting to ₦57,375,048,522.82 worth of contracts awarded to contractors. 

b. Consequently, we were provided with the 95 contracts amounting to ₦162,345,037,399.87 i.e., 85 contracts, (₦157,344,353,425.87) through tendering and 10 contracts (₦5,000,683,974.00) through Direct Labour, as documented in table 3.3 below. 

Table 3.3: Summary of sampled Contracts awarded by ABSG  

MDAsNumber of  Sample  requestedSampled Amount  requested (₦)Tendering Direct LabourMDA’s rationale
Number of contracts  providedAmount of  contracts  provided (₦)Number of  contracts  providedAmount of  contracts  provided (₦)
Works 70 195,892,863,343.85 46 149,449,291,456.60 1,761,072,500.00a. Ministry of Works provided  documents for only 53 of the  70 sample contract requested.  We however reviewed 49  contracts as 4 are yet to  commence. b. Ministry of Works did not  provide all documents  requested stating that several  other parties including the  Panel of enquiry and EFCC,  were also requesting for the  same contracts documents  requested.

49 Ministry of Education, Environment, LGC Affairs, Health, Industry and Agriculture. 

50 The expected supporting documents include Invitation to bid, award letters, tenders, quotations, agreements, minutes of MTB, payment vouchers, Interim certificates, Final  Completion certificates etc.

36 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

MDAsNumber of  Sample  requestedSampled Amount  requested (₦)Tendering Direct LabourMDA’s rationale
Number of contracts  providedAmount of  contracts  provided (₦)Number of  contracts  providedAmount of  contracts  provided (₦)
c. Of the 70 requested, contract  files for 53 contracts were  provided, with 4 contracts yet  to commence, hence we  reviewed 49 contracts.
Office of the  Governor 25 6,755,456,674.55 21 3,423,806,674.55 – 
Housing51 32 5,778,511,591.00 – – 3,239,611,474.00 
ASOPADEC 10 2,559,730,732.00 1,501,486,560.00 – The DPRS and Cashier,  ASOPADEC stated that of the  sample of 10 contracts requested: a. The contract files for three (3)  contracts amounting to  ₦756,692,614.00, could not be  located.  b. The project “Grading of 10KM  Amaiyi Obiloha road” by Direct  Labour amounting to  ₦301,551,558 does not exist.
Public Utilities  and Water  Resources5214 1,843,745,107.70 10 1,523,769,592.00 – The Ministry stated that only 10 of  the 14 contracts files could be  located.

51 Now Ministry of Lands and Housing from 29 May 2023. 52 Now Ministry of Power and Public Utilities from 29 May 2023.

37 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

MDAsNumber of  Sample  requestedSampled Amount  requested (₦)Tendering Direct LabourMDA’s rationale
Number of contracts  providedAmount of  contracts  provided (₦)Number of  contracts  providedAmount of  contracts  provided (₦)
Education 28 1,636,522,900.00 – – – The DPRS stated53 that she is not  informed of the contracting  process in the Ministry. She is only  aware of one (1) contract,  Construction of 24 shops at  Tenant Road, Aba by Stone  Technology Electromart Company  Ltd, during the period under  review for which she does not  know the contract value.
Environment 1,503,935,200.00 – – – Ministry of Environment provided  supporting documents for one (1)  contract, Reclamation/Erosion  Control at Umueledi Village, Old  Umuahia by Ngamec Nigeria Ltd  amounting to ₦1,200,861,604.87.  However, the award letter  provided, which is not consistent  with the schedule provided by the  Secretary, F&GPC, indicate that  the project was awarded on 12  June 2014, which is not within the  period under review. 
Local  Government 1,200,861,604.87 – – – – The Permanent Secretary  represented54 that all the officers 

53 Exhibit 2 – Confirmation of understanding between KPMG and the DPRS, Ministry of Education dated 20 November 2023. 54 Exhibit 3 – Response letter provided by Ministry of Local Government and Chieftaincy Affairs dated 21 November 2023.

38 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

MDAsNumber of  Sample  requestedSampled Amount  requested (₦)Tendering Direct LabourMDA’s rationale
Number of contracts  providedAmount of  contracts  provided (₦)Number of  contracts  providedAmount of  contracts  provided (₦)
and  Chieftaincy  Affairs are new to the Ministry and they  could not locate any of the records  to support the sample contracts  requested.
Youth and  Sports  Development 1,200,000,000.00 1,200,000,000.00 – – Not applicable
Health 44 829,364,626.00 – – – Ministry of Health responded to  the circlarisation letter of 4  September 2023, on 19 December  2023, representing that the  contracts awarded by the Ministry  were executed through Direct  Labour. The Ministry did not  provide supporting documents for  the contracts.
Industry55 250,095,000.00 – – – The Ministry did not respond to the  circularisation letter of 19 October  2023 and our most recent follow  up on 29 January 2024.
Finance 245,999,142.72 245,999,142.72 – 
Agriculture 23,000,000.00 – – – The Ministry represented on 8  December 2023, that the  requested contracts were taken  over by the Ministry of Digital 

55 Now Ministry of Trade, Commerce and Industry from 29 May 2023.

39 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

MDAsNumber of  Sample  requestedSampled Amount  requested (₦)Tendering Direct LabourMDA’s rationale
Number of contracts  providedAmount of  contracts  provided (₦)Number of  contracts  providedAmount of  contracts  provided (₦)
Economy and SME and therefore  would be in a better position to  provide the information for the  contracts. Ministry of Digital Economy and  SME responded to our  circularization letter on 21  December 2023, however the  Ministry did not provide sufficient  records.
Total 233 219,720,085,922.69 85 157,344,353,425.87 10 5,000,683,974.00

 Source: Compiled by KPMG from records provided by ABSG. 

3.3.1 85 contracts amounting to ₦157,344,353,425.87 executed through Tendering process – MDA’s View 

We reviewed the supporting documents provided by the seven56 (7) MDAs for 85 contracts totalling to ₦157,344,353,425.87, awarded to 53  contractors, noting an average non-compliance rate of 65% (i.e., 69% average non-compliance rate in selection of contractors and 61% in award  of contracts), as outlined in Table 3.3.1 below and Appendix 10.14 for details. 

56 Ministry of Works, Office of the Governor, Housing, ASOPADEC, Public Utilities and Water Resources, Youth and Finance.

40 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

Table 3.3.1: Summary of observations on contract award process for sampled contracts 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/85
1SelectionGovernor’s approval 35 83,382,082,143.10 41%
Record of advertisement / Invitation to bid 73 95,225,934,678.78 86%
Record of In-house estimate 33 9,823,996,672.27 39%
Contractors bid documents 69 118,704,268,815.67 81%
Record of bid opening 85 157,344,353,425.87 100%
Ministry’s evaluation report 72 98,570,680,828.07 85%
MTB memo on recommended contractor 43 56,435,196,068.37 51%
8Approval &  Award of  ContractF&GPC memo on selected contractor 62 140,560,158,959.61 73%
Exco conclusion 69 156,838,392,944.87 81%
10 Record of “No Objection” from BPP 82 156,759,362,425.87 96%
11 Award letter 21 97,728,315,044.27 25%
12 Acceptance of award letter 56 64,394,664,822.37 66%
13 Record of signed contract agreement 45 32,492,586,431.07 53%
14 Record of vetting by the MOJ 49 80,101,498,607.67 58%
15 Final Completion Certificate / Goods  Received Note 27 20,785,563,834.91 32%
Average non-compliance rate 64%

Source: Compiled by KPMG from Contracts files provided by ABSG.

41 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.3.1.1 Selection Process 

3.3.1.1.1 No record of Governor’s approval for 35 contracts 

a. Discussion with relevant officials57 in the Ministries58 indicate that the Governor approves  a project prior to the commencement of the contracting process. However, there is no  record that the Governor approved 35 contracts amounting to ₦83,382,082,143.10. 

3.3.1.1.2 Non-adherence to advertisement / invitation to bid for 73 contracts 

Findings relating to the 73 non-complaint contracts totalling ₦95,225,934,678.78 are  documented below: See Appendix 10.14 for details. 

a. No record of advertisement for 73 contracts amounting ₦95,225,934,678.78 

i. Section 26 (1) of the State’s Procurement law states that “all procurement of goods  and works by all procuring entities shall be conducted by open competitive biding.  Section 27 (1) further states that invitation to bid may be either by way of State  Competitive Bidding or Nation Competitive Bidding. 

ii. The Office of the Governor, ASOPADEC, Ministry of Works and Public Utilities and  Water Resources did not provide record of advertisements of tender opportunity for  76 contracts amounting to ₦95,225,934,678.78 on the State’s newspaper, on its  notice board, at least two national newspapers and any official website of the  procuring entity. 

iii. For Ministry of Works, the DPRS stated that where there is no ITT, It could either be  due to missing records or the contracts were solicited through single sourcing or  selective bidding i.e. the Ministry invites selected contractors to bid for the identified  project. However, the DPRS did not provide record or justification to support his  statement. 

iv. The other Ministries are did not provide responses as at the date of this report. 

v. Furthermore, the Ministries did not indicate or provide justification for the contracting  method (i.e. single sourcing or selective bidding) utilised in a contracting process. 

b. Contract awarded to Gemp Engineering despite late submission of bid amounting  ₦1,418,714,000.00 

Ministry of Works awarded for the “Construction of Itukpa to Ossa Ukwu to Mgboko to  Obete to Iheorji Road, Obingwa LGA” amounting to ₦1,418,714,000.00 to Gemp  Engineering despite submitting bids after the due date of the ITT. The Ministry of Works  acted contrary to Section 29 of the Abia State Procurement Law 2012, which states that  “any bid received after the deadline for the submission of bids shall not be opened and  

57 DPRS and DF Ministry of Works, DQS Ministry of Housing, DF, Ministry of Health. 

58 Ministry of Works, Ministry of Housing, and Ministry of Health.

42 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

must be returned to the supplier or contractor which submitted it”. The Ministry did not  provide a justification for the deviation of the policy. 

Table 3.3.1.1.2: Late submission of bids 

S/N Name of Project Contract Value  (₦) Bidder Bid due  dateDate of bid  submissionNumber of  days after bid  submission  deadline
1Construction of  Itukpa to Ossa  Ukwu to Mgboko  to Obete to  Iheorji Road,  Obingwa LGA1,418,714,000.00Mauphil  Company  Enterprises14-Jun 1921-Jun-19 7
Gemp  Engineering  Limited24-Jun-19 21
Admau Integrated  Service15-Jul-1931
Total 1,418,714,000.00

 Source: Compiled by KPMG from Contract files provided by ABSG. 

3.3.1.1.3 No record of In-house estimate for 33 contracts 

a. In-house estimate is a rough approximation of the potential cost of construction or  procurement. It enables the procuring Ministry make informed and data driven decision  when evaluating and selecting a contractor. Per ABSG practice, the In-house estimate  should precede the evaluation of submitted bids. However, there is no record of inhouse  estimate for 33 contracts amounting to ₦9,823,996,672.27. See Appendix 10.14 for  details. 

b. The In-house estimate provided by the Ministry of Finance, Works, Youth, Public Utilities  and Water Resources and the Office of the Governor is not dated, hence there is  insufficient information to determine the timing of the In-house estimate as stated in the  aforementioned practice. 

3.3.1.1.4 Award of contracts to contractors despite incomplete bid documents for 69  contracts 

a. Per section 18 (6) of Abia State procurement law, all bidders in addition to requirements  contained in any solicitation documents shall posess: 

i. Professional and technical qualifications to carry out particular procurements 

ii. Financial capacity 

iii. Equipment and other relevant infrastructure 

iv. Legal capacity to enter into the procurement contract 

v. All its obligations to pay taxes, pensions and social security contributions

43 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

b. Other requirements, in addition to aforementioned requirements, per discussions with  the Ministries59 and the ITT document include: 

i. Proposal / Quotation. 

ii. Record of contractor registration with Abia State Ministry of Works as contractor. iii. Record of payment of non-refundable tender fees. 

c. However, we noted 69 contracts amounting to ₦118,704,268,815.67, which were  awarded to contractors with incomplete bid documents. See Appendix 10.14 for details. 

3.3.1.1.5 No record of bid opening for 85 contracts 

a. The seven (7) Ministries60 did not provide record of bid opening for the 85 sampled  contracts with a cumulative value of ₦157,344,353,425.87. 

b. Consequently, there is no record that the seven (7) Ministries complied with Section 32  of the State’s Procurement Law, which requires that all bids be opened in public, in the  presence of the bidders or their representative and any interested member of the public.  See Appendix 10.14 for details. 

3.3.1.1.6 No record of Ministry’s Evaluation for 72 contracts 

a. According to Section 34 of the Abia State Procurement Law, “a contract shall be awarded  to the lowest evaluated responsive bid from the bidders substantially responsive to the  bid solicitation. Furthermore, Section 24 of Abia State Procurement Law and Section  3303 of the Abia State Financial Regulations reflect that the relevant tender board has  the responsibility for the evaluation of bids. 

b. The Ministry of Works, Finance, Public Utilities and Water Resources, Office of the  Governor and ASOPADEC did not provide record of bid evaluation for 72 of the 85  sampled contracts with a cumulative value of ₦98,570,680,828.07. 

c. Consequently, there is no record that the Ministries complied with the relevant law and  regulations for the 72 contracts. 

3.3.1.1.7 Non-adherence to MTB recommendation to F&GPC for 43 contracts 

a. According to the relevant law and process understanding discussions held with the  relevant Ministries, where the contract is ₦50,000,000 and above, the MTB forwards  recommended contractor to F&GPC for approval. 

b. However, there is no record that the Office of the Governor, ASOPADEC, Ministry of  Works and Public Utilities and Water Resources forwarded MTB recommendation for 43  contracts, amounting to ₦56,435,196,068.37 for contracts above the ₦50,000,000  threshold. 

59 Ministry of Works, Ministry of Housing, and Ministry of Health. 

60 Ministry of Works, Office of the Governor, Housing, ASOPADEC, Public Utilities and Water Resources, Youth  and Finance.

44 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.3.1.2 Award of Contract 

3.3.1.2.1 Non provision of F&GPC recommendation to the Executive Council for 62  contracts 

a. The Secretary, F&GPC did not provide recommendations to the Executive Council for 62  of 69 sample contracts within the threshold of F&GPC, with a cumulative value of  ₦140,560,158,959.61. 

b. However, we sighted F&GPC recommendation for 7 contracts in line with Section 19 (aiii)  of the State’s Procurement Law. 

c. Consequently, there is no record that F&GPC complied with Section 19 (aiii) of the  State’s Procurement Law and Section 3302 (iii) of the State’s Financial Regulations that  require F&GPC to submit contracts awarded by it to the Executive Council for approval. 

3.3.1.2.2 Non provision of Exco conclusion for 69 contracts 

a. The office of the SSG did not provide the Exco approval on the recommended contractors  for 69 sampled contracts within the threshold of Exco, with a cumulative value of  ₦156,838,392,944.87. 

b. Consequently, there is no record that Exco approved the recommended bidders in line  with the relevant law and regulation. 

3.3.1.2.3 Awarding of the Contracts 

a. No record of Award Letter – 21 contracts 

i. The relevant MDAs61 did not provide award letters for 21 contracts with a cumulative  value of ₦97,728,315,044.27, and thus there is no record that the Ministries adhered  to the section 3317 of the State’s Financial Regulations that require the final award  of contract will be to the parties whose tenders have been accepted. 

b. Award of contract and payment to Spatial Layers Ltd without due process 

i. F&GPC awarded a contract for “Abia State SFTAS Property Enumeration Project  Consultants in ten (10) LGAs of Abia State” to Spatial Layers Ltd with a value of  ₦245,999,142.72 on 11 May 2021 before Ministry of Finance performed the following  procurement activities, which is contrary to the contract award process. 

▪ ITT – Ministry of Finance published an ITT on 23 May 2021 after awarding  contract to Spatial Layers Ltd (i.e. 12 days before ITT). 

▪ Submission of bids – Moreso, Spatial Layers Ltd and other bidders submitted bids  during the period from 4 March 2021 to 10 March 2021 before the award letter  and ITT was published, indicating that the published bids on 23 May 202 is to  

61 ASOPADEC, Ministry of Works and Youth.

45 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

regularize the absence of an ITT in March 2021, when the actual bids were  submitted. 

▪ MTB meeting – Ministry of Finance MTB held on 24 May 2021, after the award  letter has been issued to Spatial Layers Ltd, which is contrary to the relevant laws  and regulation. 

▪ Payments amounting to ₦245,992,142.75 were made on 9 April 2021 to Spatial  Layers Ltd for the contract i.e. (44 days before award of contract).  

ii. Furthermore, the project justification indicates that the successful implementation of  the project would enable the State to access an inflow of $2.5 million from World  Bank. 

iii. The DF, Ministry of Finance and Project Accountant stated that the project was  successfully implemented and the State is expected to receive the inflow from World  Bank into any of the accounts maintained by the State. However, the DF, Ministry of  Finance and Project Accountant did not provide any record of project completion. 

iv. The Chief Accountant, office of the AG stated that the inflow is received into ABSG  Consolidated IGR account with account number “1013892907”.  

v. We verified the receipt of the $2.5 million from World Bank in its naira equivalent  amounting to ₦994,700,000.00 on 28 March 2021. 

3.3.1.2.4 Non-adherence to “Certificate of No Objection” from BPP for 82 contracts 

a. Per the State Public Procurement Law, “Certificate of No Objection” means the document  evidencing that due process have been followed in the conduct of a procurement  proceeding and allowing for the procuring entity to enter into contract. 

b. Furthermore, Section 21 (h) of the Law requires the procuring Ministry to obtain a  “Certificate of No Objection” to contract award from the Bureau within prior review  threshold and Section 18 (4) stipulate that any procurement without a “Certificate of No  Objections” to contract Award would be null and void. 

c. However, discussion with the Special Adviser, Due Process62 reflect that the Bureau was  not functional in Abia state since 2012, and therefore did not issue “Certificates of No  Objection”. 

d. Nonetheless, we reviewed the 82 sampled contracts noting that the Ministry of Public  Utilities and Water Resources obtained “Certificate of No Objection” for three (3)  contracts amounting to ₦584,991,000.00 in 2016, 2017 and 2018, which is contrary to  the assertion by the Special Adviser, Due Process. 

e. Hence, there is no record that 82 contracts amounting to ₦156,759,362,425.87 adhered  to the requirement of the Law. 

62 Formerly Abia State Bureau of Public Procurement.

46 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.3.1.2.5 Acceptance of award letter – 56 contracts 

a. Discussion with relevant officials63 in the Ministries indicate that contractors should  accept contract award letter in writing. However, there is no record that 56 contract  awards amounting to ₦64,394,664,822.37 were documentarily accepted by contractors. 

3.3.1.2.6 No record of signed contract agreement for 45 contracts 

a. The relevant Ministries64 did not provide signed contract agreements for 45 contracts with  a cumulative value of ₦32,492,586,431.07, and thus there is no record that the Ministries  adhered to the section 3317 of the State’s Financial Regulations that require the selected  contractor to sign the contract agreement. 

3.3.1.2.7 No record of ratification by MOJ for 49 contracts 

a. There is no record that the MOJ ratified 49 contract agreements with a cumulative value  of ₦80,101,498,607.67, and thus the Ministries65 did not adhere to the contracting  practice. 

3.3.1.2.8 No record of Completion Certificates for 27 contracts 

a. The Ministry of Public Utilities and Water Resources and the Office of the Governor did  not provide complete information of the status of completion for the 14 of the 85 sampled  contracts. 

b. However, we reviewed the 71 contracts for which we were provided status of completion,  noting no record of final completion certificates for 27 of the 71 contracts, with a  cumulative value of ₦20,785,563,834.91. 

3.3.2 Ten (10) contracts executed through Direct Labour 

a. Direct labour is a method of procurement where the MDA utilizes internal resources to  carry out a specified project. The resources could be fully sourced in-house, partially in house or hire of external labour to the MDA. 

b. The under-listed Ministries provided records for ten (10) contracts amounting to  ₦5,000,683,974.00 executed through Direct Labour. 

i. Ministry of Works (3) – ₦1,761,072,500.00 

ii. Ministry of Housing (7) – ₦3,239,611,474.00 

63 DPRS and DF Ministry of Works, DQS Ministry of Housing, DF, Ministry of Health. 

64 Ministry of Works, Office of the Governor, ASOPADEC, Public Utilities and Water Resources, Youth and  Finance. 

65 Ministry of Works, Office of the Governor, ASOPADEC, Public Utilities and Water Resources, Youth and  Finance.

47 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

c. There is no law or standard operating procedure guiding the execution of contracts through Direct Labour in the State. Consequently, we  have documented the practice of contracts execution through Direct Labour with the Ministries, noting inconsistencies in the two (2) Ministries. 

3.3.2.1 Ministry of Works – Direct Labour 

a. The DPRS stated66 that the practice of contracts executed through Direct Labour in the Ministry is as follows: 

i. The Governor approves a project to be executed directly by the Ministry. 

ii. The Ministry invites selected vendors to submit proposals/quotations for the project due to the ministry not having adequate equipment  and labour to perform the project in house. 

iii. Upon submission of the bids, the MTB meets to evaluate and select the qualifying bidder. 

iv. Thereafter, the Ministry then awards the project to the contractor, and signs an MoU with the contractor rather than the Agreement in the  normal procurement process. 

v. Payments intended for such contracts are made directly into the Ministry’s account. Subsequently, the Ministry settles the contractor. b. Our analysis of the three (3) contracts provided by the Ministry is summarised below 

Table 3.3.2.1: Summary of analysis of two (2) contracts 

Project Name Contractor Name Contract Value (₦)Governor’s  ApprovalBid  DocumentsMinistry’s  evaluation reportAward  Letter /  Jobbing  OrderRecord  of  service  delivery
Construction of Itungwa-Owo  Ohanze Road (8.1km) Effdee Nigeria Limited 996,030,000.00 ✓ ✓ Not applicable due  to single sourcing✓ Ongoing
Rehabilitation/Reconstruction of  Faulks Road, AbaTrack Care Global  Construction Company Limited 720,000,000.00 × ✓ ✓ ✓ 
Rehabilitation of Failed sections  in Azikiwe Raod, Goerges street Track Care Global  Construction Company Limited 45,042,500.00 × ✓ ✓ ✓ Ongoing

66 Exhibit 3 – Confirmation of Understanding between KPMG and the DPRS and DF in the Ministry of Works dated 7 July 2023.

48 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Project Name Contractor Name Contract Value (₦)Governor’s  ApprovalBid  DocumentsMinistry’s  evaluation reportAward  Letter /  Jobbing  OrderRecord  of  service  delivery
and Georges by Ikot Ekpene  road
Total 1,761,072,500.00

 Source: Compiled by KPMG from Contract files provided by ABSG. 

c. We noted the following in the review of the three (3) contracts provided: 

i. No record of Governor’s approval for two (2) contracts 

The filing index reflects that the Governor approved the project through Direct Labour. However, the contract file did not contain the  document evidencing the written approval from the Governor. 

ii. No Ministry’s evaluation report for one (1) contract 

▪ There is no record of Ministry of Works’s evaluation report for the construction of Itungwa-Owo Ohanze road from the MTB, reflecting  the selection of the qualifying bidder. 

▪ There is only one (1) selected vendor for the project, which is contrary to the practice adopted by the Ministry of Works i.e. selective  tendering.

49 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.3.2.2 Ministry of Housing – Direct Labour 

a. Contrary to the practice of Direct Labour in Ministry of Works, the DQS stated67 that the  contract executed through Direct Labour follows the process highlighted below: 

i. Governor selects a contractor and requests the Ministry to supervise the execution  of the project. 

ii. A letter of release of fund is sent to the Ministry from the Office of the Governor for  the contract sum to be paid directly to the contractor. 

iii. The Ministry monitors the completion rate of the project and an issues an Interim  Valuation Certificate to the contractor.  

b. The Ministry provided records of seven (7) contracts amounting to ₦3,239,611,474.00  awarded to Denzos International Construction Nigeria Limited (“Denzos”) through  

Direct Labor. Our review of the seven (7) contracts revealed the following: 

i. One of the seven (7) contracts, “Completion of outstanding, adjusted & renewed  works at ABSG new Government House” with a contract value of ₦1,194,944,221.00 

were awarded to through tendering process. The Ministry invited bids for tenders for  

the project on 27 October 2022, after the Governor instructed the Ministry on 25  

October 2022 to execute the project through Direct Labour. 

ii. The former Governor instructed Ministry of Housing via a release letter to supervise  and pay Denzos for the remaining seven (7) projects. 

Table 3.3.2.2: Details of the seven (7) contracts awarded to Denzos  

S/N Project Name Contract Value (₦)
Completion of Outstanding, Adjusted & Renewed Works at ABSG New  Government House 1,194,944,221.00
Furnishing of the New Government House 852,900,000.00
Landscaping work at New Government House premises, Ogurube Layout,  Umuahia 650,000,000.00
Completion of Drainage, Retaining Wall, Stone Pitch & fence, Gate and  Gate Security House 236,990,285.00
Construction of 2 Storey Security Staff Lodge Complex 219,076,968.00
Painting of and Minor Repair Works in Government Hose Buildings/guest  House 50,000,000.00
Installation and Supply of Brand New 250KVA Generator Set to Abia State  New Government House 35,700,000.00
Total 3,239,611,474.00

 Source: Compiled by KPMG from Contracts files provided by Ministry of Housing. 

67 Exhibit 4 – Per representation of the DQS on 19 July 2023.

50 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with  KPMG International Limited, a private English company limited by guarantee.  

Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4 Contract Award – Contractors’ View 

a. Of the 560 contracts awarded to 23168 contractors, 520 contracts had a cumulative contract value of ₦294,824,123,365.79 awarded to 221  contractors. See table 3.4 for details of the contractors 221 contractor below. 

b. ABSG did not provide sufficient information69 to independently verify and validate the completeness of the total number of contracts awarded  during the period under review. 

Table 3.4: Details of contracts awarded to contractors – contractors’ view 

S/N Contractor of Interest70Number  of  ContractsContract value per  schedules71 of Contracts  awarded provided by  ABSG (₦)Sample  Number of  Contracts  ProvidedSampled Amount Provided  (₦) Reference
Track Care Global Construction Company  Limited 28 76,005,747,447.92 13 64,330,627,212.61 Section 3.4.1
Tunnel End Investment Company Limited 25,702,628,441.82 14,348,102,844.00 Section 3.4.2
Ferotex Construction Company Limited 13 20,090,274,810.75 6,331,398,692.00 Section 3.4.3
China Zhonghao Nigeria Limited 15,028,209,797.58 6,632,779,351.58 Section 3.4.4
Hartland Nigeria Limited 9,882,752,246.40 9,882,752,246.40 Section 3.4.5
Ekcleen Integrated Services Nigeria Ltd 9,758,491,489.24 7,033,691,688.60 Section 3.4.6
Setraco Nigeria Limited 8,820,045,347.90 8,820,045,347.90 Section 3.4.7

68 Ministry of Works and Industry did not provide sufficient information to determine the contractors for 8 contracts 

69 ABSG does not maintain a schedule of all contracts awarded in the State. However, we requested for a schedule of contracts from F&GPC and other relevant Ministries  involved in major contracts during the period under review as well as downloaded a schedule of contracts awarded from Abia State e-procurement website, noting inconsistencies  in the schedule of contract awards provided by F&GPC and the relevant Ministries. 

70 The contractors of interest are ordered per the contractors who obtained CFF from the banks to finance projects awarded by ABSG. 

71 Schedule of contracts awarded provided by Ministry of Works, Housing, Office of the Governor and Education, F&GPC and downloaded from Abia State E-Procurement  Website.

51 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contractor of Interest70Number  of  ContractsContract value per  schedules71 of Contracts  awarded provided by  ABSG (₦)Sample  Number of  Contracts  ProvidedSampled Amount Provided  (₦) Reference
Rock-Waters Integrated Service Nigeria  Ltd 8,679,437,713.00 5,849,806,876.00 Section 3.4.8
Delhope Resources Limited 5,604,687,544.11 2,906,999,319.11 Section 3.4.9
10 Arab Contractors Limited 3,820,618,639.40 3,820,618,639.40 Section 3.4.10
11 Masta Service Company Nigeria Limited 3,050,000,000.00 – – 
12 Yodel Global Resources Limited 2,811,832,328.79 2,771,832,328.79 Section 3.4.11
13 Sannan Jadoon International Ltd 2,151,886,502.00 – – 
14 Pumeco Industries Nigeria Ltd 2,125,831,856.42 – – 
15 Effdee Nigeria Ltd 22,093,942,120.00 – – 
16 Dawn ‘N’ Daisy Integrated Service Ltd 1,416,977,720.00 – – 
17 Bulletine Construction Company Ltd 1,219,734,140.00 1,219,734,140.00 Section 3.4.12
18 PRO-M Limited 900,000,000.00 900,000,000.00 Section 3.4.13
19 Vision Cars Ltd 854,910,000.00 854,910,000.00 Section 3.4.14
20 Logistics De-Luke Ltd 612,912,925.00 612,912,925.00 Section 3.4.15
21 Innoson Vehicle Manufacturing Company  Ltd 591,000,000.00 – – 
Sub-total 115 201,221,921,070.33 42 136,316,211,611.39 
22 Other contractors summed up 405 93,602,202,295.46 53 26,028,825,788.48 
Grand Total 520 294,824,123,365.79 95 162,345,037,399.87

Source: Compiled by KPMG from records provided by ABSG and the circularized banks.

52 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.1 Track Care Global Construction Company (Track Care) 

3.4.1.1 Contractor’s Profile 

Table 3.4.1.1-1: Profile of Track Care 

Item Details72
Registered Address No 16, Alexandra Crescent Wuse 2, Abuja
Company Type Private Company Limited By Shares
Incorporation date 15 Jun 2015
Incorporation number RC 1267268
Place of Incorporation Nigeria
Status with CACInactive (See Appendix 10.5.7 for a screenshot of Track Care’s inactive status  on CAC’s online portal)
ManagementAs reflected on NG-check, see details of the Directors below: a. Obioma Christian – Director b. Chibuike Charles Iheadindu – Director c. Ugochukwu Amanzenta – Director

ABSG awarded 29 contracts to Track Care through tendering and Direct Labour during the period under review. 28 of the 29 contracts had a  cumulative value of ₦76,005,747,447.92, while information provided by ABSG is not sufficient to determine the contract value for the remaining  one (1) contract. See details in the table below. 

72 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry; TRACK CARE GLOBAL CONSTRUCTION CO. LTD Nigeria company profile – address, contacts,  owners (ng-check.com).

53 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Table 3.4.1.1-2: Summary of contracts awarded to Track Care

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦) Contract Type
Expansion and Dualization of ururuka Road, Phase 2 from  Umuobiakwa, Obingwa L.G.A. to Isicourt Umuahia South L.G.A. 47,418,944,305.00 47,418,944,305.00Tendering
2Reconsruction and Expansion/Dualization of Ururuka Road from  Obikabia to Umuobiakwa LGA as well as Construction of Roundabout  at Obikabia Junction.6,943,053,078.78 6,943,053,078.78
3Rehabilitation/Overlaying and Desilting of Drainage and Rigid  Pavement of final failed sections of Faulks Road, Aba North LGA,  Abia State.2,703,358,912.00 
4Rehabilitation/Reconstruction of Median and Collapsed/Undersized  drain at Ikot Ekpene Road dualized Umuoba Road and asphalt  overlay at Ukaegbu Road Aba, Abia State.2,083,654,621.81 
Rehabilitation/Reconstruction of Nsulu/Olokoro – Ikwuano Road. 2,000,000,000.00 
6Channelization/Drainage Works and Reconstruction and  Rehabilitation of Aba-Owerri Road Phase II from Osisioma Junction to  Union Bank, Aba, Abia State.1,880,394,701.40 1,880,394,701.40
Rehabilitation and Resurfacing of Afor Ibeji-Ubakala Road Dualized  Phase 2. 1,711,608,091.76 1,711,608,091.76
Construction of Umuobiakwa-Umuokatawom-Ossa Okea Road. 1,668,739,300.00 1,668,739,300.00
Construction of Umuopara Amano Isiugwu to Mgboko Itungwa in  Obingwa LGA, with Gully Erosion Remediation. 1,487,674,927.00 
10 Construftion of Ukpakiri Abayi, Okoroato-Umuoru Ntighauzor Road in  Obingwa LGA, Abia State. 1,143,382,325.00 1,143,382,325.00

54 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦) Contract Type
11 Rehabilitation and Desilting of Drain and Reconstruction of Median at  Azikiwe Road, Aba. 1,133,585,890.81 1,133,585,890.81Tendering
12 Construction of Mgboko Umuoria Akpuga –Mgboko Anya Road,  Obingwa LGA. 949,821,970.00 
13 Asphalt Overlay of 1.3km Dualized Aba – Owerri Road on 2.6km  (Single Lane) and Channelized works at Aba – Owerri Road. 657,200,655.00 657,200,655.00
14 Construction of Umuocham-Umuezi-Umuarughi Rd in Obingwa LGA. 650,442,130.00 
15 Construction of Umuobiakwa to Ohanze Road. 609,805,120.00 
16 Reconstruction of Afor Ibeji, Old Umuahia Road. 394,900,000.06 394,900,000.06
17 Rehabilitation/Overlaying and Desilting of Drainage for Clifford Road,  Aba. 341,460,850.00 
18 Rehabilitation of Opobo Junction to Emelogu Road. 337,154,154.80 337,154,154.80
19 Rehabilitation/Reconstruction of Road at Clifford University, Ihie in  Isiala Ngwa North LGA. 326,773,152.00 
20 Construction of Umuola – Umuobasi Estate Road, Aba North and  Obingwa LGAs, Abia State. 276,622,210.00 276,622,210.00
21 Rehabilitation/Overlaying and Desilting of Drainage for Pound Rd,  Aba, Abia State. 150,000,000.00 
22 Reconstruction of Umunkpeyi Road in Isialangwa South LGA and  Umuosu Nsulu in Isialangwa North LGA, Abia State. 125,327,639.70 
23 Reconstruction of Road and Fence wall at Shoe Plaza, Aba, Abia  State. 111,988,642.00 

55 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦) Contract Type
24 Construction of Okon-Aku Main Bridge. 63,154,570.00 Tendering
25 Rehabilitation and Resurfacing of Stella Maris Church Road. 56,657,700.80 
26 Reconstruction of Ahiaudele Box Culvert and asphaltic concrete  overlay of surround. 15,000,000.00 
27 Reconstruction of Seventh – Day Adventist Church Str. Off Udeagbala  Road. – 
Subtotal 75,240,704,947.92 63,565,584,712.61
28 Rehabilitation/Reconstruction of Faulks Road, Aba. 720,000,000.00 720,000,000.00Direct Labour
29 Rehabilitation of failed sections in Azikiwe Raod, Goerges street and  Georges by Ikot Ekpene road. 45,042,500.00 45,042,500.00
Subtotal 765,042,500.00 765,042,500.00
Total 76,005,747,447.92 64,330,627,212.61

Source: Compiled by KPMG from schedules of contract awards provided by ABSG. 

3.4.1.2 Selection and award of contracts to Track Care 

a. We reviewed the supporting documents provided for 13 sampled contracts totalling to ₦64,330,627,212.61, i.e., 11 contracts through  tendering and 2 contracts through Direct Labour, vis-à-vis the contract award and Direct Labour processes, noting the following: 

3.4.1.2.1 Non-adherence to selection and award of contracts 

a. Our review of the 11 sampled contracts amounting to ₦63,565,584,712.61 through tendering, revealed an average non-compliance rate of  58% as outlined, in table 3.4.1.2.1 below, which indicates that Ministry of Works did not adhere to the required contracting process, before  awarding the contracts to Track Care.

56 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

Table 3.4.1.2.1: Summary of observations on contract award process for sampled contracts 

S/N Contracting Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/11
1SolicitationGovernor’s approval 61,765,001,732.61 82%
Record of advertisement / Invitation to bid 9,875,548,435.24 36%
Record of In-house estimate 276,622,210.00 9%
Contractors bid documents 13,291,649,990.85 82%
Record of bid opening 11 63,565,584,712.61 100%
6EvaluationMinistry’s evaluation report 14,389,481,717.81 64%
MTB memo on recommended contractor 7,783,582,793.83 64%
8Approval & AwardF&GPC memo on selected contractor 10 61,853,976,620.85 91%
Exco conclusion 11 63,565,584,712.61 100%
10 Record of “No Objection” from BPP 11 63,565,584,712.61 100%
11 Award letter 51,743,001,253.02 45%
12 Acceptance of award letter 5,655,642,093.22 36%
13 Record of signed contract agreement – 0%
14 Record of vetting by the MOJ 50,231,065,930.00 27%
15 Closure Final Completion Certificate / Goods  Received Note 671,522,210.06 18%
Average non-compliance rate 58%

Source: Compiled by KPMG from Contracts files provided by ABSG.

57 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.1.2.2 Direct Labour – No record of Governor’s approval 

a. As required by ABSG’s practice, there are no records indicating that the Governor approved the two (2) contracts amounting to ₦765,042,500.00 through Direct Labour. 

3.4.2 Tunnel End Investment Company Limited (Tunnel End) 

3.4.2.1 Contractor’s Profile 

Table 3.4.2.1-1: Profile of Tunnel End 

Item Details73
Registered Address No 14B, Osisioma Industrial Layout Osisioma, Aba, Abia
Company Type Private Unlimited Company
Incorporation date 29 Jul 2008
Incorporation number RC 763213
Place of Incorporation Nigeria
Status with CACInactive (See Appendix 10.5.8 for a screenshot of Tunnel End’s inactive status on  CAC’s online portal)
ManagementAs reflected on NG-check, see details of the Directors below: a. Nwafor Enyinnaya Chima – Director b. Dr. Mrs Kelechi Enylnwafor – Director c. Dame Gladys Nnenwafor` – Director d. Chiekezie Enyinwafor – Director

73 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry; TUNNEL END INVESTMENT CO. LTD Nigeria company profile – address, contacts, owners (ng check.com).

58 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

Item Details73
e. Nwafor Chimaeze Dike – Director
PEP Statusa. Nwafor Enyinnaya Chima is the son of the former deputy Governor of  Abia state (1992 -1993, 2003 – 2006) and Governorship Candidate of  the Young Progressives Party (YPP) in the 2023 Abia Gubernatorial  election.

ABSG awarded 11 contracts to Tunnel End, with a cumulative value of ₦25,702,628,441.82 for or nine (9) of the 11 contracts, during the period  under review, while the information provided by ABSG is not sufficient for us to determine the contract value for two (2) contracts. See details in  the table below. 

Table 3.4.2.1-2: Summary of contracts awarded to Tunnel End

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
Expansion/Reconstruction of Obikabia Road. 5,520,000,000.00 5,520,000,000.00
Construction of Umuene to Obikabia Roads. 4,647,434,398.82 
3Construction of Link Roads to Major Economic Zones of Abia State:  a. Amaise-Umuobiakwa-Ohanze Road b. Owo-Ahiafor Agburike-Ohanze c. Umuaro-Umuanunu-Ekwereazu-Nto-Border Road d. Ovom/Umuogele Junction, Ukuenyi-Abala-Ika (Akwa-Ibom Border).3,370,832,840.00 3,370,832,840.00 
4Construction of Link Roads to Major Economic Zones of Abia State:  a. Eziama-Nvosi-Eketa Rd. 10.0km b. Mgbokonta-Amachi-Umunkpeyi 5.0km c. Umunkpeyi-Amaiyi-Okpokiri-Umuehim-Umuru Road 9.5km3,249,572,590.00 3,249,572,590.00 

59 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
Reconstruction/Rehabilitation of Obohia Road, Aba, Abia South LGA, Abia State. 2,940,738,180.00 
Construction of Umuchiala/Abayi –Ihie Road in Isiala Ngwa South LGA (14.5km). 2,573,537,048.00 
Construction of Abayi-Ariaria-Umuojima-Umuakpara Road with a Spur to Umuidiagha. 2,207,697,414.00 2,207,697,414.00
Construction/Rehabilitation of Adaelu-Unity Garden Estate Road, Osisioma LGA. 314,062,428.00 
Construction of BIR/Bureau of Public Procurement Building. 878,753,543.00 
10 Construction of Umuene-Omoba Roads. 
11 Construction of Asa Umunka – Ugwunagbo LGA Headquarters. 
Total 25,702,628,441.82 14,348,102,844.00

Source: Compiled by KPMG from schedules of contract award provided by ABSG. 

3.4.2.2 Selection and award of contracts to Tunnel End 

3.4.2.2.1 Non-adherence to selection and award of contract 

a. We reviewed the supporting documents provided for four (4) contracts totalling to ₦14,348,102,844.00, noting an average non-compliance  rate of 57% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before awarding the  contracts to Tunnel End in table 3.4.2.2.1 below. 

Table 3.4.2.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/4
1SolicitationGovernor’s approval 5,520,000,000.00 25%
Record of advertisement / Invitation to bid 14,348,102,844.00 100%

60 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/4
Record of Inhouse estimate 3,370,832,840.00 25%
Contractors bid documents 5,520,000,000.00 25%
Record of bid opening 14,348,102,844.00 100%
6EvaluationMinistry’s evaluation report 14,348,102,844.00 100%
MTB memo on recommended contractor 8,890,832,840.00 50%
8Approval &  AwardF&GPC memo on selected contractor 6,620,405,430.00 50%
Exco conclusion 14,348,102,844.00 100%
10 Record of “No Objection” from BPP 14,348,102,844.00 100%
11 Award letter 3,370,832,840.00 25%
12 Acceptance of award letter 6,620,405,430.00 50%
13 Record of signed contract agreement 5,520,000,000.00 25%
14 Record of vetting by the MOJ 8,890,832,840.00 50%
15 Closure Final Completion Certificate / Goods  Received Note 5,520,000,000.00 25%
Average non-compliance rate 57%

Source: Compiled by KPMG from Contracts files provided by Ministry of Works.

61 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.3 Ferotex Construction Company (Ferotex) 

3.4.3.1 Contractor’s Profile 

Table 3.4.3.1-1: Profile of Ferotex 

Item Details74
Registered Address Km 17 Port Harcourt/Aba Road, Portharcourt, Rivers
Company Type Private Unlimited Company
Incorporation date 3 May 2006
Incorporation number RC 652228
Place of Incorporation Nigeria
Status with CACInactive (See Appendix 10.5.9 for a screenshot of Ferotex’s inactive status on CAC’s  online portal)
ManagementAs reflected on NG-check, see details of the Directors below: 1. Onuh Festus Oshaba – Director 2. Chidera Pascal Oshaba Onuh – Director 3. Chukwemeka Clinton Oshaba – Director 4. Nweke Ejikeme – Director

ABSG awarded 16 contracts to Ferotex, with a cumulative value of ₦20,090,274,810.75 for 13 of the 16 contracts, during the period under review,  while the information provided by ABSG is not sufficient to determine the contract value for three (3) contracts. See details in the table below. 

74 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry, FEROTEX CONSTRUCTION COMPANY LIMITED Nigeria company profile – address, contacts,  owners (ng-check.com).

62 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Table 3.4.3.1-2: Summary of contracts awarded to Ferotex

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
Construction of Various Roads and Supervision of Execution of Existing Road Contracts in Abia  State. 10,000,000,000.00 
Reconstruction and Construction of Uratta-Umuezeke-Umuekechi-Ogwe Road, Aba North and  Ukwa West LGAs. 2,916,138,452.50 2,916,138,452.50
Construction of Umuaro-Isikor-Umunkiri Owo-Ahiafor. 2,618,431,328.00 2,618,431,328.00
Reconstruction umuaro-Nenu Obot-Akara Road. 894,260,640.00 
Channelization/Drainage and Rehabilitation of Aba-Owerri from Brass Junction to Railway  Crossing, Aba. 796,828,911.50 796,828,911.50
Rehabilitation/Reconstruction of Opobo Junction – Ikot-Ekpene Road. 776,110,407.75 
Construction of Obingwa-omumazor Abbatoir Road, Uratta. 622,438,200.00 
Reconstruction/Rehabilitation of 3 No Roads in Umuahia: Afara, Umuobasi and Ezeogbulafor  Streets. 458,719,490.00 
Rehabilitation/Reconstruction of Umule Road, Aba. 398,023,440.00 
10 Rehabilitation of Failed Sections of 9 No Roads in Aba Area. 315,615,441.00 
11 Rehabilitation of Asa Road from Bata/Ikot Ekpene Junction to St. Michaels By Asa Road Aba. 120,981,000.00 
12 Rehabilitation of Umuocham Road, Aba. 98,825,000.00 
13 Amelloration of Bad Sections of Port Harcourt Aba Expressway from Boundary to Army  Checkpoint/Barrack Asa. 73,902,500.00 
14 Construction of Itungwa – Amairi – Omoba Road. – 
15 Construction of Ohuru Ndoki – Obohia Road. – 

63 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
16 Rehabilitation of 25Nos roads by Seven contractors. – 
Total 20,090,274,810.75 6,331,398,692.00

Source: Compiled by KPMG from schedules of contracts award provided by ABSG. 

3.4.3.2 Selection and award of contracts to Ferotex 

3.4.3.2.1 Non-adherence to selection and award of contract 

a. We reviewed the supporting documents provided for a sample of three (3) contracts totalling to ₦6,331,398,692.00, noting an average non compliance rate of 58% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before  awarding the contracts to Ferotex in table 3.4.3.2.1 below. 

 Table 3.4.3.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/3
1SolicitationGovernor’s approval 796,828,911.50 33%
Record of advertisement / Invitation to bid 6,331,398,692.00 100%
Record of Inhouse estimate – – 0%
Contractors bid documents 2,916,138,452.50 33%
Record of bid opening 6,331,398,692.00 100%
6EvaluationMinistry’s evaluation report 3,712,967,364.00 67%
MTB memo on recommended contractor 3,712,967,364.00 67%
F&GPC memo on selected contractor 3,415,260,239.50 67%

64 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/3
9Approval &  AwardExco conclusion 6,331,398,692.00 100%
10 Record of “No Objection” from BPP 6,331,398,692.00 100%
11 Award letter 2,618,431,328.00 33%
12 Acceptance of award letter 2,618,431,328.00 33%
13 Record of signed contract agreement 3,415,260,239.50 67%
14 Record of vetting by the MOJ 2,618,431,328.00 33%
15 Closure Final Completion Certificate / Goods  Received Note 796,828,911.50 33%
Average non-compliance rate 58%

 Source: Compiled by KPMG from Contracts files provided by Ministry of Works.

65 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.4 China Zhonghao Nigeria Limited (China Zhonghao) 

3.4.4.1 Contractor’s Profile 

Table 3.4.4.1-1: Profile of China Zhonghao 

Item Details75
Registered Address Plot No 7, Inuwa Abdulkadir road, Kaduna South, Kaduna
Company Type Private Unlimited Company
Incorporation date 07 Feb 2002
Incorporation number RC 441280
Place of Incorporation Nigeria
Status with CAC Active
ManagementAs reflected on NG-check, see details of the Directors below: 1. Beijing Zhonghao Globe Engineering Consltancy Service – Director 2. Zhonghao Overseas Construction Engineering Co.ltd – Director 3. Zhang Yingju – Director 4. M. Ali Abubakar – Director 5. Lanli Jia – Director

ABSG awarded four (4) contracts to China Zhonghao, with a cumulative value of ₦10,830,494,574.58 during the period under review. See details  in the table below. 

75 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry, CHINA ZHONGHAO NIGERIA LIMITED Nigeria company profile – address, contacts, owners (ng check.com).

66 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Table 3.4.4.1-2: Summary of contracts awarded to China Zhonghao 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

S/N Contract Contract Value (₦) Sampled Amount Provided (₦)
Construction of Osisioma Flyover Bridge in Aba. 4,755,156,538.44 4,755,156,538.44
Construction of Flyover concrete Bridge at Ariaria Junction, Enugu/PH  Expressway, Aba. 4,197,715,223.00 
Construction of Flyover Concrete Bridge at Ala Oji Junction, Enugu/PH  Expressway, Aba. 4,197,715,223.00 
Reconstruction/Construction of 3 No Roads in Aba (Udeagha, Spur from  Umueze to UBA to Mall). 1,877,622,813.14 1,877,622,813.14
Total 10,830,494,574.58 6,632,779,351.58

Source: Compiled by KPMG from schedules of contracts award provided by ABSG. 

3.4.4.2 Selection and award of contracts to China Zhonghao 

3.4.4.2.1 Non-adherence to selection and award of contract 

a. We reviewed the supporting documents provided for two (2) contracts totalling to ₦6,632,779,351.58, noting an average non-compliance rate  of 67% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before awarding the contracts  to China Zhonghao in table 3.4.4.2.1 overleaf. 

Table 3.4.4.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non compliance  rate (%) A/2
1SolicitationGovernor’s approval 4,755,156,538.44 50%
Record of advertisement / Invitation to bid 6,632,779,351.58 100%
Record of Inhouse estimate – – 0%

67 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non compliance  rate (%) A/2
Contractors bid documents 4,755,156,538.44 50%
Record of bid opening 6,632,779,351.58 100%
6EvaluationMinistry’s evaluation report 6,632,779,351.58 100%
MTB memo on recommended contractor 6,632,779,351.58 100%
8Approval &  AwardF&GPC memo on selected contractor 6,632,779,351.58 100%
Exco conclusion 6,632,779,351.58 100%
10 Record of “No Objection” from BPP 6,632,779,351.58 100%
11 Award letter 4,755,156,538.44 50%
12 Acceptance of award letter 6,632,779,351.58 100%
13 Record of signed contract agreement – – 0%
14 Record of vetting by the MOJ – – 0%
15 Closure Final Completion Certificate / Goods  Received Note 4,755,156,538.44 50%
Average non-compliance rate 67%

Source: Compiled by KPMG from Contracts files provided by Ministry of Works.

68 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.5 Hartland Nigeria Limited (Hartland) 

3.4.5.1 Contractor’s Profile 

Table 3.4.5.1-1: Profile of Hartland 

Item Details76
Registered Address No 100, Warrake Road, Auchi, Edo.
Company Type Private Company Limited By Shares
Incorporation date 23 Oct 1995
Incorporation number RC 280974
Place of Incorporation Nigeria
Status with CAC Active
ManagementAs reflected on NG-check, see details of the Directors below: 1. Abu Inu-umoru – Director 2. Thelma Inu-umoru – Director 3. Afizu Carlton Inu-umoru – Director 4. Shadi Kawerma – Director 5. Laurant Bancod – Director 6. Kadir & Co Oluwakemi – Secretary

ABSG awarded one (1) contract to Hartland, with a cumulative value of ₦9,882,752,246.40 during the period under review. See details in the  table below. 

76 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry, HARTLAND NIGERIA LIMITED Nigeria company profile – address, contacts, owners (ng check.com).

69 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Table 3.4.5.1-2: Summary of contracts awarded to Hartland 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

S/N Contract Contract Value (₦) Sampled Amount Provided  (₦)
Reconstruction/Dualization of Port-Harcourt Road with Services Lane on both sides. 9,882,752,246.40 9,882,752,246.40
Total 9,882,752,246.40 9,882,752,246.40

Source: Compiled by KPMG from schedules of contract award provided by ABSG. 

3.4.5.2 Selection and award of contracts to Hartland 

3.4.5.2.1 Non-adherence to selection and award of contract 

a. We reviewed the supporting documents provided for one (1) contract totalling to ₦9,882,752,246.40, noting an average non-compliance rate  of 53% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before awarding the contracts  to Hartland in table 3.4.5.2.1 below. 

 Table 3.4.5.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/1
1SolicitationGovernor’s approval – – 0%
Record of advertisement / Invitation to bid 9,882,752,246.40 100%
Record of Inhouse estimate – – 0%
Contractors bid documents – – 0%
Record of bid opening 9,882,752,246.40 100%
6EvaluationMinistry’s evaluation report 9,882,752,246.40 100%
MTB memo on recommended contractor – – 0%
F&GPC memo on selected contractor 9,882,752,246.40 100%

70 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/1
9Approval &  AwardExco conclusion 9,882,752,246.40 100%
10 Record of “No Objection” from BPP 9,882,752,246.40 100%
11 Award letter 9,882,752,246.40 100%
12 Acceptance of award letter 9,882,752,246.40 100%
13 Record of signed contract agreement – – 0%
14 Record of vetting by the MOJ – – 0%
15 Closure Final Completion Certificate / Goods  Received Note– – 0%
Average non-compliance rate 53%

Source: Compiled by KPMG from Contracts files provided by Ministry of Works.

71 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.6 Ekcleen Integrated Services Nigeria Limited (Ekcleen) 

3.4.6.1 Contractor’s Profile 

Table 3.4.6.1-1: Profile of Ekcleen 

Item Details77
Registered Address No 18B, Billy Avenue off Timothy lane rumuola, Port Harcourt, Rivers
Company Type Private Company Limited By Shares
Incorporation date 6 Sep 2013
Incorporation number RC 1140435
Place of Incorporation Nigeria
Status with CACInactive (See Appendix 10.5.10 for a screenshot of Ekcleen’s inactive status on CAC’s  online portal)
ManagementAs reflected on NG-check, see details of the Directors below: 1. Onu Onyedikachi – Director 2. Onu Chijioke – Director 3. Enebeli Anwuli – Director 4. Uzoma Emeka Onuoha – Secretary

ABSG awarded ten (10) contracts to Ekcleen, with a cumulative value of ₦9,758,491,489.24 for eight (8) of the 10 contracts, during the period  under review, while the information provided by ABSG is not sufficient for us to determine the contract value for two (2) contracts. See details in  the table below. 

77 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry; EKCLEEN INTEGRATED SERVICES NIG LTD Nigeria company profile – address, contacts, owners  (ng-check.com).

72 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Table 3.4.6.1-2: Summary of contracts awarded to Ekcleen

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
1Reconstruction of Link Roads in Aba:  a. Sacred Heart-Chibuike-Uzonikpa-Omuma Link Road Off Faulks Road, Aba with Concrete  Pavement; b. Ngozi Avenue-Nwokocha Link Road Off Faulks; c. Imo Avenue-Ogbiyi-Omuma Link Road.3,760,765,027.00 3,760,765,027.00 
Reconstruction of Omuma Road off Ama Ogbonna. 2,374,890,239.60 2,374,890,239.60 
3Reconstruction of 4No Roads in Aba:  a. Mbieri Str. off Ngwa Road with Concrete Pavement b. Victoria Str. Off Ngwa Road with Rigid Pavement and Surfacing c. Okoro-Ibadan-Ohanku Link Roads with Rigid Pavement d. Onyebuchi-Ibere-Ohanku Link Road with Rigid Pavement.898,036,422.00 898,036,422.00 
4Reconstruction of Link Roads in Aba:  a. Orlu Str. Off Ngwa Road b. Arodizuogu Str. Off Ngwa Roads c. Ndiuche Str. Off Ngwa Road d. Akokwa Str. Off Ngwa Road.864,499,899.64 
Reconstruction of Linked Roads: Ibadan, Agharandu, Emejiaka and Onyebuchi Street in Aba. 617,892,368.00 
Reconstruction of Osusu Road, Aba 588,820,000.00 
Construction of Umuokpo-Owo Ahiafor Link Road in Obingwa LGA. 489,862,533.00 
Reconstruction of Akalanna Street Off Okigwe Road, Aba 163,725,000.00 
Maintenance/Rehabilitation of Ururuka Road. – 

73 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contract Contract Value (₦) Sampled Amount  Provided (₦)
10 Rehabilitation of some sections of Ururuka road with Concrete Pavement. – 
Total 9,758,491,489.24 7,033,691,688.60

Source: Compiled by KPMG from schedules of contract award provided by ABSG. 

3.4.6.2 Selection and award of contracts to Ekcleen 

3.4.6.2.1 Non- adherence to selection and award of contract 

a. We reviewed the supporting documents provided for three (3) contracts totalling to ₦7,033,691,688.60, noting an average non-compliance  rate of 60% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before awarding the  contracts to Ekcleen in table 3.4.6.2.1 below. 

 Table 3.4.6.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/3
1SolicitationGovernor’s approval 4,658,801,449.00 67%
Record of advertisement / Invitation to bid 7,033,691,688.60 100%
Record of Inhouse estimate – – 0%
Contractors bid documents 7,033,691,688.60 100%
Record of bid opening 7,033,691,688.60 100%
6EvaluationMinistry’s evaluation report 7,033,691,688.60 100%
MTB memo on recommended contractor 4,658,801,449.00 67%
F&GPC memo on selected contractor 3,272,926,661.60 67%

74 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance  rate (%) A/3
9Approval &  AwardExco conclusion 7,033,691,688.60 100%
10 Record of “No Objection” from BPP 7,033,691,688.60 100%
11 Award letter 4,658,801,449.00 67%
12 Acceptance of award letter 3,760,765,027.00 33%
13 Record of signed contract agreement – – 0%
14 Record of vetting by the MOJ – – 0%
15 Closure Final Completion Certificate / Goods  Received Note– – 0%
Average non-compliance rate 60%

 Source: Compiled by KPMG from Contracts files provided by Ministry of Works.

75 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings March 2024 

3.4.7 Setraco Nigeria Limited (Setraco) 

3.4.7.1 Contractor’s Profile 

Table 3.4.7.1-1: Profile of Setraco 

Item Details78
Registered Address Plot 526 Shehu Yaradua Way, Abuja, FCT
Company Type Private Unlimited Company
Incorporation date 22 Aug 1977
Incorporation number RC 22039
Place of Incorporation Nigeria
Status with CAC Active
ManagementAs reflected on NG-check, see details of the Directors below: 1. Umoru Abu Inu – Director 2. Khalaf Said – Director 3. Khalaf Fayez – Director 4. Mastrocinque Michelangelo – Director 5. Umoru Afizu Inu – Director 6. Mouannes Ziad – Director 7. Libbos Ghassan – Director 8. Baron Camille – Director 9. Chaudhuri Ray – Director

78 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry; SETRACO (NIGERIA) LIMITED Nigeria company profile – address, contacts, owners (ng check.com).

76 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

ABSG awarded one (1) contract to Setraco, with a cumulative value of ₦8,820,045,347.90 during the period under review. See details in the  table below. 

Table 3.4.7.1-2: Summary of contracts awarded to Setraco 

S/N Contract Contract Value (₦) Sampled Amount Provided  (₦)
Rehabilitation/Expansion of Faulks Road and Rehabilitation/Expansion of  Ifeobara Pond (Flood Control) 8,820,045,347.90 8,820,045,347.90
Total 8,820,045,347.90 8,820,045,347.90

Source: Compiled by KPMG from schedules of contract award provided by ABSG. 

3.4.7.2 Selection and award of contracts to Setraco 

3.4.7.2.1 Non-adherence to selection and award of contract 

a. We reviewed the supporting documents provided for one (1) contract totalling to ₦8,820,045,347.90, noting an average non-compliance  rate of 73% as outlined, which indicates that the Ministry of Works did not adhere to the required contracting process, before awarding the  contracts to Setraco in table 3.4.7.2.1 below. 

 Table 3.4.7.2.1: Summary of observations on contract award process for sampled contracts

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/1
1SolicitationGovernor’s approval – – 0%
2Record of  advertisement /  Invitation to bid8,820,045,347.90 100%
Record of Inhouse  estimate – 0%

77 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/1
Contractors bid  documents 8,820,045,347.90 100%
Record of bid opening 8,820,045,347.90 100%
6EvaluationMinistry’s evaluation report 8,820,045,347.90 100%
7MTB memo on  recommended  contractor8,820,045,347.90 100%
8Approval &  AwardF&GPC memo on  selected contractor 8,820,045,347.90 100%
Exco conclusion 8,820,045,347.90 100%
10 Record of “No  Objection” from BPP 8,820,045,347.90 100%
11 Award letter 8,820,045,347.90 100%
12 Acceptance of award  letter – – 0%
13 Record of signed  contract agreement 8,820,045,347.90 100%
14 Record of vetting by the  MOJ 8,820,045,347.90 100%
15 ClosureFinal Completion  Certificate / Goods  Received Note– – 0%

78 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential

Abia State Government 

Provision of Forensic Audit Services 

Project Azumini – Final Report of Factual Findings 

March 2024 

S/N Contracting  Phase RequirementsNumber of non compliant contracts AValue of non- compliant  contracts (₦)Non-compliance rate  (%) A/1
Average non-compliance rate 73%

 Source: Compiled by KPMG from Contracts files provided by Ministry of Works. 

3.4.8 Rock-Waters Integrated Services Nigeria Limited (Rock-Waters) 

3.4.8.1 Contractor’s Profile 

Table 3.4.8.1-1: Profile of Rock-Waters 

Item Details79
Registered Address 22, Vattern crescent off Amazon Street, Maitama, Abuja, FCT
Company Type Private Company Limited By Shares
Incorporation date 12 Oct 2012
Incorporation number RC 1071414
Place of Incorporation Nigeria
Status with CACInactive (See Appendix 10.5.11 for a screenshot of Rock waters inactive status on  CAC’s online portal)
ManagementAs reflected on NG-check, see details of the Directors below: 1. Enyi-nwafor Kelechi Amarachi – Director

79 Retrieved on 3 November 2023 from CAC – Nigerian Corporate Registry; ROCK-WATERS INTEGRATED SERVICES NIG LTD Nigeria company profile – address, contacts,  owners (ng-check.com).

79 

© 2024 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.  Printed in Nigeria All rights reserved. 

Document: KPMG Confidential 

Do you have any information or event for candid reporters to publish or cover? Kindly Call us on 09019260726 or send us message on Whatsapp number 07034623382 or send us an email contact@candidreporters.com

Disclaimer: Candid Reporters publishes news, information, sports, opinions, and Interviews. The site includes both reported and edited content. Unmoderated posts and Comments expressed here do not reflect the opinions of Candid Reporters or any employee thereof..

LEAVE A REPLY

Please enter your comment!
Please enter your name here