/ 31 May 1999

NIGERIA SUSPENDS GOVT CONTRACTS

IN a first move against much criticised spending by the past military regime, Nigeria’s new president, Olusegun Obasanjo, on Monday suspended contracts worth hundreds of millions of dollars. Sworn in on Saturday following February elections, the retired general ordered the creation of a panel to review all contracts, appointments, awards and licences made since January 1, which have been suspended in the interim, his spokesman said in a brief statement. From January to the end of May, the last military regime signed dozens of contracts worth hundreds of millions of dollars covering oil, construction and engineering projects. Among contracts awarded was the building of a new defence headquarters, a domestic terminal at Lagos airport, and Abuja offices for the Central Bank of Nigeria. Contracts worth 600 million dollars were reported to have been signed between February and the mid-April. The regime also awarded licences to operate 11 lucrative oil blocs, allegedly to cronies of the outgoing team.