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Secrets Reporters
Daring investigations into contract awards by various government entities in Lagos State have uncovered a disturbing trend of companies being granted contracts despite not meeting the tax clearance requirement stipulated by the state government. The Lagos State Government mandates that companies must have at least three years of tax history before they can be awarded government contracts. However, several contracts awarded in July 2023 have raised questions about compliance with this rule.
In July 2023, the Special Committee on Rehabilitation of Public Schools awarded a contract for the “Maintenance of Office Building (Framework Agreement)” to Ollykay Venture Nigeria Limited. However, investigations revealed that the company was registered on November 28, 2022, less than a year before the contract was awarded. With less than a year of tax history, Ollykay Venture did not meet the mandatory three-year tax clearance required by the Lagos State Government.
In a similar development, we gathered that the Office of the Chief of Staff also awarded a contract worth ₦14,996,400.00 in July 2023 to Bolad Catering Services for the “Provision of Food for Security Personnel and Complementary Staff Attached to the Governor’s Office.” Despite the substantial contract sum, findings revealed that the company had not completed its required three years of tax clearance at the time the contract was awarded.
In the vein, the Lagos State Emergency Management Agency (LASEMA) awarded a contract worth ₦6,600,000.00 to Mirabliss Global Services Limited in July 2023 for the “Maintenance and Upkeep of the LASEMA Base Station at Igando for the Months of April, May, and June 2023.” Mirabliss Global Services was registered on October 26, 2021, meaning the company had only been in operation for two years at the time of the contract award. This falls short of the state’s three-year tax clearance requirement.
Further investigations revealed that the Ministry of Transportation awarded a contract worth ₦2,290,500.00 in July 2023 to Sasia Stationery Enterprises for the “Procurement of Stationery.” Sasia Stationery was registered on January 7, 2022, giving the company just over one year of tax history. The lack of a complete three-year tax clearance suggests that this contract was also awarded in violation of Lagos State’s tax policies.
Lastly, the Ministry of Health awarded a substantial contract worth ₦114,806,221.00 in July 2023 to Hamibra Integrated Services Nigeria Limited for the “Installation and Renovation of Five (5) LASAMBUS Ambulance Points.” Records show that Hamibra Integrated was registered on January 7, 2022, which is two years short of the tax history required by the Lagos State Government. Despite the significant value of the contract, the company did not meet the tax clearance criteria.
These findings point to potential violations of the Lagos State Government’s rules on contract awards. It is a legal requirement for companies to have a minimum of three years of tax clearance before they are eligible to receive government contracts. It remains to be seen what actions the Lagos State Government will take to address these violations and ensure future compliance with its regulations.
