COVID-19: Government fires 2 Service Providers over delay in payments

* We received only 40, not 150 trucks of rice from Nigeria Customs ─Minister

Isola Moses | ConsumerConnect
For apparent lapses in implementing the agreed contractual guidelines, the Federal Government has terminated the contract of two Payment Service Providers (PSPs) for failure in effecting the Conditional Cash Transfer to the poor and vulnerable residents in four states in Nigeria.

It was learnt that the Federal Government had contracted the affected Payment Service Providers to effect payments to the vulnerable individuals in Bayelsa, Akwa Ibom, Abia and Zamfara States of the Federation.

Mrs. Sadiya Farouq, Honourable Minister for Humanitarian Affairs, Disaster Management and Social Development, in a statement Tuesday, April 14, said the project was cancelled following a breach of the agreement by the contractors.

The statement reads in part: “The Minister of Humanitarian Affairs, Disaster Management and Social Development, Mrs. Sadiya Umar Farouq, has directed the immediate termination of the contract of two Payment Service Providers (PSPs) for failure to meet the contractual agreement to commence Conditional Cash Transfer to beneficiaries in four states of the federation assigned to the two PSPs.

“The affected states are Bayelsa and Akwa Ibom in the South-South; Abia in the South East and Zamfara, in the North West.

“The immediate termination of the contract would be with the guidance of the World Bank, and a new procurement process launched using World Bank procurement guidelines to ensure that payment commences in the affected states on or before April 28, 2020.”

Mrs. Farouq stated that the Federal Government would not accept delays in the current payment round of N20,000 stipends to beneficiaries in poor and vulnerable households under any pretext.

“The failure of any payment service provider to meet their contractual agreement is unacceptable.

“The Federal Government through the Ministry cannot allow contractors to derail the immediate Conditional cash transfers to the poor and the vulnerable,” said the Minister.

Recall that President Muhammadu Buhari Monday, April 13, in a nationwide broadcast to Nigerians, had informed the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development to continue the disbursement of cash transfers and food distribution to vulnerable households as efforts at tackling telling effects of COVID-19 pandemic on the nation’s economy.

Meanwhile, the Federal Government has disclosed that it received 40 trucks of rice from the leadership of the Nigeria Customs Service (NCS).

Farouq, Minister for Humanitarian Affairs, Disaster Management and Social Development, has disclosed that her ministry had taken the delivery of 40 trucks of rice out of the 150 trucks seized by the NCS.

She made the clarification at the ongoing daily briefing of the Presidential Task Force on COVID-19 in Abuja, FCT.

“On the 150 from Customs, this is what was pledged by Customs. But so far, we have only 40 trucks available,” the Minister stated.