Bill to jail contractors that abscond after receiving mobilisation fee passed 3rd reading

Bill to jail contractors that abscond after receiving mobilisation fee passed 3rd reading

A new changes in public procurement act has recommended two years imprisonment for any contractor that abscond after being paid mobilisation fee.

The “Bill for an Act to Amend the Public Procurement Act, 2007,” passed the third reading in the House of Representatives in Abuja on Thursday.

Read also: Bill protecting dead bodies from ritualists passed

Other new changes into public procurement bill are the shorting of contract processing and execution period, and the raising of mobilisation fee on contracts from 15 per cent to not more than 50 per cent.

Another changes is in Section 35(3) where a contractor who has been paid the mobilisation fee but abandons the project, faces a prison term of two years on conviction.

It notes, “Any person or authority who accesses mobilisation fee and absconds or does not carry out the services or works commensurate to the fee paid, shall be guilty of an offence and punishable with 2 years imprisonment or a fine equivalent to the fee paid or both.”

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