FG bans MDAs from transacting business with unregistered firms

FG bans MDAs from transacting business with unregistered firms

Ministries, Departments and Agencies (MDAs) of the government have been banned from transacting business with companies and other corporate bodies not duly registered by the Corporate Affairs Commission, financial authorities announced on Friday.

A statement signed by the Director of Press in the Ministry of Finance, Salisu Na’Inna Dambatta said as part of the directives given by the Finance Minister Kemi Adeosun, companies that have not fully complied with the requirement will not be paid for contracts.
To be eligible to transact business with MDAs, companies and other corporate bodies must use their letterhead which must also bear the Registration Number (RC) as issued by the Corporate Affairs Commission.

The letterhead must also have contact telephone numbers, valid e-mail address and official company address as well as the names and nationalities of the Directors of the company at the bottom of the page.

Quoting from a circular issued by the Office of the Secretary to the Government of the Federation, Dambatta said that the measure is aimed at protecting MDAs from entering contractual obligations with fake or unregistered companies, even as the Minister of Finance warned that payments for contracts by companies that did not comply with the requirements may not be considered.

According to Dambatta, the Circular said: “This is to ensure transparency in the dealings of Government with corporate entities and to ensure compliance with the provisions of the Companies and Allied Matters Act.”

“To strengthen the enforcement of the circular, the Minister of Finance, Kemi Adeosun, has directed the Accountant-General of the Federation to cause all Directors of Finance and Accounts in Federal MDAs to strictly comply with its contents.
“The Minister urged those wishing to engage in transactions with Government entities to comply with the requirements to avoid delay in payment”.

 

Elizabeth Archibong

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