ICPC exposes tactics used by contractors, officials to divert public funds

The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Musa Aliyu, on Tuesday detailed the recurring schemes through which contractors and public officials siphon government funds via the procurement system.

Aliyu, represented by the Commission’s Secretary, Clifford Oparaodu, spoke at a one-day procurement engagement workshop held at the ICPC headquarters in Abuja.

He described procurement-related fraud as the largest source of financial leakage in Nigeria, noting that public procurement accounts for an estimated 10–25 per cent of the country’s GDP.

Aliyu outlined common schemes such as contract splitting to evade approval thresholds, over-invoicing, and cost inflation of 200–300 per cent.

Other methods include phantom contracts that exist only on paper, delivery of substandard work amounting to less than half of the project value, and project abandonment after mobilisation payments.

Further tactics include collusion between contractors and procurement officials, duplication of identical projects under different titles, and reappearance of abandoned projects in successive national budgets.

He added that some projects are executed on private property belonging to sponsors or associates, while equipment purchased with public funds is often diverted for personal use.

Aliyu recalled that the ICPC’s Constituency and Executive Projects Tracking Initiative, launched in 2019, has uncovered deep-seated corruption in project planning and execution—including lack of needs assessments, duplication of projects, weak transition between legislative terms, and networks of corrupt actors.

He said transparency in procurement directly improves citizens’ welfare, noting that the tracking initiative has helped restore abandoned schools, health centres, water facilities, and other public services.

The ICPC chairman stressed the importance of strict compliance with the Public Procurement Act, which requires open competitive bidding, publication of procurement processes, standardised contract templates, and independent verification of contractor capacity.

He also underscored the role of e-procurement systems in reducing fraud through real-time monitoring and audit trails.

Aliyu warned that procurement corruption—one of the largest drains on public resources—continues to delay essential service delivery, undermine development, and erode public trust in government institutions.