How Dikko Umaru Radda-led SMEDAN disbursed ₦1.3bn to 33 unverified contractors

SMEDAN Director-General

Credit: The Guardian Nigeria

SMEDAN disbursed over ₦2.47 billion in questionable transactions Q1 2020; topping it off by engaging 33 unverified contractors, contravening open contracting guidelines and financial regulations.

Dr Dikko Umaru Radda, the director-general of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) signed cheques worth over ₦2.55 billion in the first quarter of 2020. 

What is more? SMEDAN made these payments while violating open contracting protocols. That’s right, all the payments were without descriptions, a move experts have since condemned for being dubious. c

SMEDAN is the federal agency responsible for monitoring and coordinating the development of Micro Small and Medium Enterprises, MSMEs.

Dataphyte also observed a string of double payments to the same companies within the same month. 

In all, these occurrences not only violate financial regulations and OTP guidelines but question the federal government’s sanction mechanism. After all, this is neither the first nor fifth occurrence of ‘invisible payments’ Dataphyte has noted. Or instances when a federal agency used unqualified contractors. 

SMEDAN’s Payments Without Description (2020)

DateBeneficiary NameAmount (₦)
31/01/2020MA NUMBU GLOBAL INVESTMENT LTD40,307,142.86
18/03/2020G-BOX INVESTMENT NIG LTD6,092,900.57
18/03/2020SANC-ZANG INTEGRATED LTD15,476,590.55
18/03/2020RASWAS NIGERIA LIMITED12,753,951.21
18/03/2020ZOMRITES 24/7 BUSS SOLUTION LTD20,317,878.00
18/03/2020SACRUX GLOBAL INVESTMENTS LTD14,141,999.88
18/03/2020MURAD ENGINEERING NIG LTD19,183,392.61
18/03/2020TG & TG BRIGHT NIG LTD38,286,796.63
18/03/2020ZOMRITES 24/7 BUSS SOLUTION LTD11,259,761.90
18/03/2020SHELTER MADE INTEGRATED NIG LTD17,017,877.25
18/03/2020LANRIT NIG LTD42,545,245.66
18/03/2020HANTSI GLOBAL RESOURCES LTD17,335,961.00
18/03/2020AGR INTEGRATED SERVICES LTD25,514,259.64
18/03/2020FAIRFIELD ENGINEERING LIMITED10,751,400.00
18/03/2020MAIDENHEAD GLOBAL VENTURES LIMITED24,806,157.75
18/03/2020HZ – GANI GLOBAL LTD29,766,369.00
18/03/2020MAIJAKKA AND COMPANY NIGERIA ENTERPRISES LTD80,795,238.10
18/03/2020SANC-ZANG INTEGRATED LTD5,990,652.43
18/03/2020IMDUPA GLOBAL VENTURES LTD40,827,380.96
18/03/2020AMMAR ESTATE MANAGEMENT LTD22,615,557.50
18/03/2020HUX SYNERGY LTD29,105,512.43
18/03/2020SOLIDTEAM INNOVATIVE PROJECTS LIMITED17,009,523.80
18/03/2020SOLID SOIL LTD.37,714,285.71
18/03/2020STONE CREEK GLOBAL VENTURES LTD12,092,142.86
16/03/2020M-SQUARE & FINISHING LTD10,751,400.00
16/03/2020FFA CONTINENTAL CONCEPT LIMITED68,888,520.40
16/03/2020KENNYZOT NIGERIA LIMITED12,092,142.86
16/03/2020WAIZAH GLOBAL RESOURCES NIG LIMITED12,092,142.86
16/03/2020HUX SYNERGY LTD8,550,000.00
16/03/2020LIBERTY DOORS GLOBAL SERVICES LTD33,019,492.00
16/03/2020BABUDAMUWA INTEGRATED SERVICES LTD10,860,000.00
16/03/2020NUR T GLOBAL MANAGEMENT LTD6,183,702.00
16/03/2020TW & PW INVESTMENTS LTD31,245,192.25
16/03/2020SKETCH AND SCAPE NIG LTD8,535,037.50
16/03/2020VOLTRICITY NIG LTD42,543,367.02
16/03/2020K.M KAMBA VENTURES NIGERIA LIMITED16,245,428.57
16/03/2020RASOLAK SERVICES NIGERIA LIMITED10,751,400.00
16/03/2020SHARINGAN RESOURCES LTD16,285,714.29
16/03/2020STOCKLEY AND FRIENDS SERVICES LTD25,714,285.71
16/03/2020TG & TG BRIGHT NIG LTD37,337,142.86
16/03/2020FFA CONTINENTAL CONCEPT LIMITED27,427,857.14
16/03/2020DREAM HOMES CONSTRUCTION LIMITED14,161,244.87
16/03/2020MURAD ENGINEERING NIG LTD6,034,167.87
16/03/2020MIRISTA INTERNATIONAL LTD ABUJA46,706,523.80
16/03/2020M-2 INTERNATIONAL LIMITED6,006,978.20
16/03/2020ATEEYA GLOBAL SERVICES LTD.13,500,000.00
16/03/2020SY – KINS VENTURES LTD.41,580,000.00
16/03/2020TALAKU INTEGRATED SERVICE LTD7,213,720.50
16/03/2020APEX IMPACT INTEGRATED LTD35,215,714.29
16/03/2020WALKON PRIME HUB LTD17,325,767.50
16/03/2020WESTSQUAD NIG LTD6,428,571.43
16/03/2020SANC-ZANG INTEGRATED LTD10,687,500.00
16/03/2020GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED16,082,550.00
16/03/2020M-2 INTERNATIONAL LIMITED11,292,099.00
16/03/2020GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED35,215,714.29
16/03/2020MARIDIQ NIGERIA LIMITED32,216,793.57
16/03/2020ROYAL UM KM NIGERIA LIMITED17,157,698.25
16/03/2020GUEDEST INVESTMENT LTD6,348,375.00
13/03/2020ZEELAN MULTI-SERVICES LIMITED6,782,525.00
13/03/2020K.M KAMBA VENTURES NIGERIA LIMITED14,850,000.00
13/03/2020WEB-MAG SERVICES NIG LTD10,751,400.00
13/03/2020PINKWELL MULTI-CONCEPT LTD12,092,142.86
13/03/2020IDEAL EXCLUSIVE SYSTEM & PROJECTS LTD9,928,378.85
13/03/2020STRUCTURAL SKYLINE LTD12,138,657.30
13/03/2020TRANS-NUBIAN ALLIED LIMITED28,500,000.00
13/03/2020AASCA NIGERIA LIMITED6,080,000.00
13/03/2020RAJAB ENT. NIGERIA LIMITED9,122,142.86
13/03/2020MUZAKAR PREMIUM INTERNATIONAL LTD15,793,750.00
20/03/2020SUPER DELUXE UNIVERSAL SERVICES LIMITED6,063,309.27
20/03/2020ZANKALIX INTEGRATED SERVICES LTD6,010,295.81
20/03/2020BLUE PEACOCK MULTIPURPOSE RESOURCES LTD6,044,926.91
20/03/2020PENDAC INDUSTRIES LIMITED10,734,428.57
20/03/2020WEB-MAG SERVICES NIG LTD19,898,928.10
20/03/2020GAGURE GLOBAL RESOURCES NIG LTD20,820,977.10
20/03/2020TOPCREST MULTI-FACETED VENTURES LIMITED14,121,160.75
20/03/2020ZANKALIX INTEGRATED SERVICES LTD10,687,500.00
20/03/2020GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED14,319,691.05
20/03/2020ZANKALIX INTEGRATED SERVICES LTD42,543,705.60
20/03/2020GAGURE GLOBAL RESOURCES NIG LTD37,337,142.86
20/03/2020RENNIES WORKS LTD6,266,490.21
20/03/2020NORTHSEAL GLOBAL INVESTMENT LTD9,122,142.86
23/03/2020BAFULATANA NIG LTD46,214,876.20
26/03/2020BONUS GLOBAL CONCEPT AND RESOURCES LIMITED14,154,769.53
26/03/2020GREEN GIANTS CONCEPT & SERVICES LIMITED22,367,441.25
26/03/2020ATTARIQ GLOBAL SERVICES LTD35,215,714.29
26/03/2020FISERV INTERNATIONAL LTD9,360,443.99
27/03/2020BARATA INTEGRATED SERVICES LTD37,337,142.86
27/03/2020J15 NIGERIA LIMITED12,119,285.72
27/03/2020BABUDAMUWA INTERGRATED SERVICES LTD35,571,428.57
27/03/2020HANTSI GLOBAL RESOURCES LTD35,215,714.29
27/03/2020BONUS GLOBAL CONCEPT AND RESOURCES LIMITED25,525,419.23
27/03/2020AJRASHAD GLOBAL CONCEPTS LIMITED68,038,095.07
27/03/2020PROCON GLOBAL SERVICES LTD12,092,142.86
27/03/2020STOCKLEY AND FRIENDS SERVICES LTD64,491,428.57
27/03/2020DALLAYI & BAKORI NIGERIA LTD42,542,078.07
27/03/2020HANTSI GLOBAL RESOURCES LTD13,405,714.29
27/03/2020MARTO GLOBAL LINKS LIMITED16,122,857.14
27/03/2020BSHAM BLOOM CONCEPTS LTD12,092,142.86
27/03/2020SALTINE ENGINEERING SERVICES LTD17,147,468.74
27/03/2020BARATA INTEGRATED SERVICES LTD9,798,756.00
27/03/2020SALTINE ENGINEERING SERVICES LTD26,862,321.17
27/03/2020PINKWELL MULTI-CONCEPT LTD29,604,588.52
27/03/2020ESTIVUS NIGERIA LIMITED37,337,142.86
27/03/2020ZUHAFA NIGERIA LIMITED16,285,714.29
27/03/2020FIRST MULTIPLE MICROFINANCE BANK LTD15,000,000.00
27/03/2020ROYAL SECURITY GUARDS LIMITED17,878,457.14
27/03/2020STONE CREEK GLOBAL VENTURES LTD10,607,142.86
27/03/2020MA NUMBU GLOBAL INVESTMENT LTD40,307,142.86
30/03/2020PINKWELL MULTI-CONCEPT LTD29,604,588.52
30/03/2020ESTIVUS NIGERIA LIMITED37,337,142.86
30/03/2020ZUHAFA NIGERIA LIMITED16,285,714.29
30/03/2020FIRST MULTIPLE MICROFINANCE BANK LTD15,000,000.00
30/03/2020ROYAL SECURITY GUARDS LIMITED17,878,457.14
30/03/2020STONE CREEK GLOBAL VENTURES LTD10,607,142.86
31/03/2020MA NUMBU GLOBAL INVESTMENT LTD40,307,142.86

Rundown of Questionable “Double payments” 

Further analysis showed that Zomrites 24/7 Buss Solution Ltd got two payments the same day amounting to ₦33.5 million (₦20.3m and ₦11.25m). The agency also paid  ₦40.31 million to MA NUMBU GLOBAL INVESTMENT LTD on the 27th of March 2020. The same company also received the same amount on the 31st of March 2020. 

On March 27th, SMEDAN paid ₦10.61 million to STONE CREEK GLOBAL VENTURES LTD. The same amount was also paid to the same company three days after. On the same date, it made a fictitious payment to FIRST MULTIPLE MICROFINANCE BANK LTD for the sum of ₦15 million and repeated the same amount on the 30th of the month. Within the same period, ZUHAFA NIGERIA LIMITED received ₦16.29 million on the 27th and 30th of March. Transactions worth ₦37.34 million each were also recorded for ESTIVUS NIGERIA LIMITED on the 27th and 30th of the month.

On March 16th, 27th, and 30th, it also paid ROYAL UM KM NIGERIA LIMITED the sum of N17.16 million, ₦17.88 million, and ₦17.88 million, respectively.

Continuing the trend on March 13, SMEDAN paid PINKWELL MULTI-CONCEPT LTD ₦12.09 million; thereafter disbursing two counts of ₦29.6 on the 27th and on the 30th of March. Overall, there were about 25 instances of these double-payments, all in March. 

SMEDAN did federal business with 33 non certified contractors

Besides the contentious transactions, some of the companies are not qualified to bid or receive federal government contracts. Combining through the Bureau of Public Procurement’s website, Dataphyte found that most of the companies failed to meet basic requirements for bidding federal contracts. These requirements include prompt payment of workers’ pensions, company registration, remittance of federal taxes, among others. 

For instance, G-Box Investment Nig. Ltd, which was paid ₦6.09 million on March 18th, 2020, for an unnamed service, is not tax compliant, according to BPP records. Also, ESTIVUS NIGERIA LIMITED, which got ₦75 million payment failed to meet tax (FIRS) obligations.

Screenshot of BPP website showing G-box Investments as a non-compliant company.

Further findings revealed that PINKWELL MULTI-CONCEPT LTD has no record on the federal government verified list of companies. Yet, SMEDAN paid the company more than ₦72 million in three batches in March.

Here’s a list of other unqualified contractors, 33 in total, viz:

S/NCompaniesAmount (₦)
1STONE CREEK GLOBAL VENTURES LTD₦33.3 million
2ROYAL SECURITY GUARDS LIMITED ₦35.76 million
3FIRST MULTIPLE MICROFINANCE BANK LTD ₦30 million 
4SALTINE ENGINEERING SERVICES LTD ₦43.9 million
5BARATA INTEGRATED SERVICES LTD  ₦47 million
6ATTARIQ GLOBAL SERVICES LTD ₦35.2 million
7GREEN GIANTS CONCEPT & SERVICES LIMITED₦22.4 million
8BONUS GLOBAL CONCEPT AND RESOURCES LIMITED ₦39.6 million
9GAGURE GLOBAL RESOURCES NIG LTD ₦58.1 million
10ZANKALIX INTEGRATED SERVICES LTD ₦59 million
11GOLDEN WHALE & PENGUIN INTEGRATED INVESTMENTS LIMITED ₦65.3 million
12HANTSI GLOBAL RESOURCES LTD ₦66.03 million 
13MURAD ENGINEERING NIG LTD ₦25.3 million
14SACRUX GLOBAL INVESTMENTS LTD ₦14.1 million
15TG & TG BRIGHT NIG LTD₦55.5 million
16SHELTER MADE INTEGRATED ₦17 million
17HANTSI GLOBAL RESOURCES LTD ₦66.03 million 
18AGR INTEGRATED SERVICES LTD ₦25.5 million 
19FAIRFIELD ENGINEERING LTD ₦10.7 million
20MAIDENHEAD GLOBAL VENTURES ₦24.8 million 
21HZ – GANI GLOBAL LTD ₦29.8 million
22MAIJAKKA AND COMPANY NIGERIA ENTERPRISES LTD ₦24.8 million
23PINKWELL MULTI-CONCEPT LTD₦72 million
24SOLID SOILS LTD ₦37.7 million 
25M-SQUARE & FINISHING LTD ₦10.75 million
26FFA CONTINENTAL CONCEPT LIMITED ₦96.2 million 
27KENNYZOT NIGERIA LIMITED ₦12.1 million 
28WAIZAH GLOBAL RESOURCES NIG LIMITED ₦12.1 million 
29BABUDAMUWA INTEGRATED SERVICES LTD ₦46.4 million
30ESTIVUS NIGERIA LIMITED₦75 million
31G-Box Investment Nig. Ltd₦6.1 million
32STOCKLEY AND FRIENDS SERVICES LTD₦90.1 million
33DALLAYI & BAKORI NIGERIA LTD ₦42.5 million
Total₦1.33 billion

SMEDAN remains silent over queries on OTP violations 

Efforts to reach SMEDAN for comments proved abortive. An official of the company who picked the reporter’s call hung up and failed to pick several calls after listening to the reporter’s questions on the fictitious and questionable companies. Several messages sent to the line were also not answered.

More so, Dr Dikko Umaru Radda, the Director-General of the agency, did not reply to messages sent to his official Twitter account.

Actions violate financial regulations 2009 and OTP guidelines 

SMEDAN fictitious payments to unverified companies violated Section 113 (i) of the Financial Regulations 2009 and the Public Procurement Act, 2007. The Procurement Act mandated all procurement to pass through the “National Competitive Bidding’ and bidders must be registered or incorporated to carry on business under Nigerian law. 

Moreover, SMEDAN omission of crucial details on the OTP continues to defeat the transparency and accountability initiative of the Federal Government’s open portal.

The Open Treasury Guidelines mandated all Ministries, Departments, and Agencies of government to ensure strict compliance with all reporting parameters. These are for payments MDAs make above ₦5 million. The parameters include Payment No, Payer Code, Agency, Beneficiary Name, Amount, and Description.

Source: Open Treasury Portal

Despite this, several government parastatals continue to ignore this crucial aspect of the guidelines. In 2019, Dataphyte raised alarms over zero description transactions worth ₦510 billion. So far, in 2020, payments worth ₦210.4 billion have been masked by President Buhari’s administration.

Experts call for sanctioning of erring MDAs

These developments strengthen opaque processes in MDAs, and in turn corruption. And as a consequence impedes civil society and media organisations from tracking budget items and public procurement. 

Giving opening remarks at the #FollowCOVID19Money Mega National Town Hall Meeting on Tuesday, December 8th, 2020, Hamzat Lawal, founder of Connected Development (CODE), urged governments at all levels to ensure that strict measures are in place for MDAs flaunting financial regulations.

Mr Iyanu Bolarinwa, Civic Hive’s Community Manager, also urged the Federal Government and the anti-corruption agencies to ensure proper sanctioning for any MDA erring against the Open government transparency initiative.

“It is not enough to release data on OTP and NOCOPO, but ultimately important to follow various procurement and open governance regulations. MDAs need to understand this and follow it to the letter,” Mr Bolarinwa added.

……..

This report is part of the fulfilment of the ATUPA fellowship by Civic Hive in collaboration with the US Embassy.

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