The Public Accounts Committee (PAC) of the House of Representatives has launched an investigation into how a government factory, a real estate facility (PPE) valued at more than 2 billion naira by the office of the Auditor General of the Federation was sold for only 13.618 million naira.
The transaction was carried out by the Ogun-Osun River Basin Development Authority.
Auction details included an 800 KVA Perkins Diesel generator purchased for an undisclosed amount by the agency in 2006 but sold for N550,000 in 2018 after being declared unusable; a CAT payload loader bought for N70,000 in 1982 but sold for N40,000, while other earth-moving equipment, such as bulldozers, graders and excavators were sold for between N350,000 and N550,000 as items unusable.
The agency’s chief executive, Olufemi Odumosu, who appeared before the committee, said the federal water resources ministry, which approved the public auction of the equipment, also appointed the auctioneers.
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Others included a 2.5L Toyota Camry bought in 2013 for N8.150 million and sold for N22,500; trimmers purchased in 2004 and lawn mowers purchased in 2004 sold for N2,000 and N6,500 respectively. There were also three Peugeot 504 estate vehicles purchased at N2.9 million each but sold for N26,400 each.
Similarly, a Mistubushi gallop truck which cost the agency 8.55 million Naira was also sold as scrap for 80,000 Naira, while a DAF truck (1000) bought for 5 million Naira was sold for N90,000.
Additionally, a Toyota Hilux purchased for N3.75 million was also sold for N187,500.
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