New Procurement Act will end capital flight – Sen Egwu

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Sponsor of the amendment bill to the 2007 Procurement Act, Senator Sam Egwu, has said that the bill, when signed into law by President Muhammadu Buhari, would help end capital flight in Nigeria.
Senator Egwu, who represents Ebonyi North Senatorial District on the platform of the Peoples Democratic Party, PDP, also assured that it would encourage local manufacturers to invest seriously in local production.
Egwu who made this explanation in Abuja weekend, while shedding light on why he proposed an amendment to the existing Act, said that he was deeply concerned and propelled by the quantum of capital flight taking place in the country on yearly basis.
The bill entitled “A Bill for an Act to Amend the Public Procurement Act to provide for and adopt a Local Content Policy and timely Completion of Procurement Processes and Other Related Matter”, was considered and passed by the Senate on Thursday June 16, 2016.
He explained that the new legislation made it compulsory for ministries, departments and agencies of government to first seek to procure certain percentage of locally made goods before considering foreign products, where such local products are available.
Egwu said, “I was inspired by the fact that I realised that a lot of money is appropriated for capital projects every year and most of these funds end up in the hands of foreign companies that produce the goods and services that we need.
“This is because once a budget is passed, it simply goes for procurement of goods and services. Then you start asking yourself, what is the fate of this huge amount of money that has been appropriated in a local economy?
“You will find out that more often than not, the money so appropriated just ends up in capital flight because the Ministries, Departments and Agencies, MDAs, will end up the procurement with foreign …Read More

Source:: Nigerian Pilot