Corruption Web: Lagos State Ministry of Justice Awards N53 Million Contract To Non-Existing Company As Two Other Agencies Award Contracts To Unqualified Companies

Secrets Reporters

It appears that despite the strict laws guiding the conduct of public servants, some high profile officials within the Lagos State civil service have made it a duty to operate using their personal policies as against the code of conduct.

This is evident in the contract racketeering series that has been ongoing by this online media. Fresh documents exclusively obtained by SecretsReporters revealed that the Lagos State Ministry of Wealth Creation and Employment, Lagos State New Towns Development Authority, and the Lagos State Ministry of Justice were all complicit in contract illegality.

In July 2023, the Lagos State Ministry of Wealth Creation and Employment awarded a contract worth N2,110,000 to Mklab Global Enterprises for the “2023 First Quarter Stakeholders Engagement and Advocacy Programme in Six Pilot LGAs.” The contract, intended to drive engagement with key stakeholders across selected local government areas, appeared to meet the government’s initiative for inclusive economic growth. However, records indicate that Mklab Global Enterprises, registered only on February 15, 2022, did not meet the stipulated requirement of holding three years of tax clearance certificates. This discrepancy calls into question whether the contract was awarded in adherence to Lagos State’s financial compliance policies, which mandate that companies must show tax clearance for at least three years prior to receiving public contracts.

In a separate transaction, the Lagos State New Towns Development Authority (NTDA) awarded Mklab Global Enterprises another contract valued at N14,954,500. This contract aimed to cover the maintenance of the authority’s operational development monitoring vehicles, including several Toyota Hilux and JMC Vigus models, necessary for the monitoring and development efforts of the agency. Despite the sizable investment, which underscored the authority’s commitment to sustaining operational capacity, Mklab Global Enterprises again fell short of the tax clearance requirement. With the company’s registration dating back only to February 2022, the lack of three-year tax documentation raises concerns over adherence to the established guidelines for contractor eligibility under Lagos State’s procurement laws.

In August 2023, the Lagos State Ministry of Justice awarded a significantly larger contract, valued at N53,954,206, to Eyitayo Temidayo Enterprises. The contract, marked for executing the Lagos State Office of Public Defender’s (OPD) mandate and activities for the year, sought to bolster the department’s capacity to provide legal support to vulnerable populations across the state. However, investigations revealed that Eyitayo Temidayo Enterprises does not exist in official business registries, casting doubts over the authenticity of the contract and raising questions about how a non-existent entity could secure such a high-value agreement from a critical government body. This finding has drawn attention to the screening processes employed by the Ministry of Justice, given the implications for transparency and accountability.

Additionally, in August 2023, the Ministry of Wealth Creation and Employment awarded a contract worth N4,500,000 to Josolfat Investment Ltd. The contract was designated for “Stakeholder Engagement with Artisans and MSMEs for the Development of the Lagos State Industrial Leather Hub in Matori, Mushin.” Intended to support Lagos State’s industrial expansion goals and improve the livelihoods of local artisans, the project carried substantial importance within the ministry’s economic empowerment agenda. However, Josolfat Investment Ltd., registered on August 3, 2020, was also found to lack the required three-year tax clearance certification, falling short of compliance with the state’s procurement guidelines.

The three years of tax clearance requirements are firmly established within Lagos State’s procurement and contracting processes to ensure transparency, accountability, and financial track record among contractors. The discovery of these non-compliant awards highlights a potential lapse in the enforcement of these protocols across various ministries. Each contract, while aimed at advancing different facets of the state’s developmental agenda, faced lapses in due diligence that may have compromised the integrity of the public contracting process.

Industry experts have expressed concern over the oversight in awarding contracts to companies that fail to meet basic eligibility criteria, emphasizing the risks associated with non-compliant contractors, especially regarding the potential for financial mismanagement or project delays. In a procurement environment designed to support businesses with a credible tax history, deviations from these norms may inadvertently promote irregularities that weaken public confidence in government operations.

Furthermore, the involvement of multiple state ministries—each ostensibly bound by the same procurement guidelines—suggests a broader issue that may warrant deeper investigation to determine if these instances reflect isolated lapses or more systematic irregularities.