Leaked Memo: Why FEC stepped down Amaechi’s N3.7bn rail security surveillance contract

A leaked Federal Executive Council (FEC) memo has revealed by the N3.7billion rail surveillance contract presented by Minister of Transportation, Rotimi Amaechi was not approved.

Amaechi had while speaking with journalists during his visit to Kaduna after terrorists attacked a Kaduna-bound train said the disaster could have been averted if the recommendation he presented to FEC for the purchase of security equipment wasn’t rejected.

But a leaked memo which was seen by The PUNCH, revealed that the FEC meeting of September 24, 2021, which was presided over by Vice President Yemi Osinbajo rejected the proposal because they “had doubts about the capability” of Mogjan Nigeria Limited, a company just incorporated on August 6, 2019 to handle the N3.7billion worth contract.

“We had doubts about the capability of a company, which was formed less than two years prior and had no track record of handling a contract of N3.7billion or a contract on surveillance systems. The company was also to be paid upfront. Our investigation pointed to a conflict of interest,” The PUNCH quoted a top Presidency official as saying.

The memo said Amaechi had in his presentation stated that the Bureau of Public Procurement had reviewed the process of procurement and had given a certificate of no objection for the contract, adding that the project would be funded from the N71.4billion budget of the ministry.

The minister subsequently asked the council to “approve the award of contract for the procurement and installation of electronic surveillance system and interrogation unit on the Abuja (Idu)-Kaduna (Rigasa) 200km railway monitoring rail intrusion detection system and emergency response system in favour of Messrs Mogjan Nigeria Limited/Cagewox Dot Net Limited in the sum of N3,780,827,410.66 inclusive of 7.5 per cent VAT with a completion period of four months.”

“Some members expressed concern about the quality of the memorandum as there was no description of the surveillance system concept note, brand name, country of manufacture or review by the previous user to enable them to make informed decisions.

“They stated that as sophisticated as the surveillance system was touted to be, there were no indications that it had been demonstrated and tested by the security technology agencies. They equally observed that all the projects were lumped together under one budget line, which they noted was not good enough as each rail line project was supposed to be captured in its individual budget line.

“The Chief of Staff to the President, Prof Ibrahim Gambari, equally asked if the equipment would be installed across all rail lines in the country and if there would be a provision for training to enable staff members to acquire knowledge and build capacity on the use of the surveillance system.

“Osinbajo pointed out that the solution system was described in a generic term and whether it had a brand name, adding that the system, being a rail equipment monitoring solution, ought to have a brand name and a comprehensive description of its functions,” the source added.