THE Executive Secretary of Tertiary Education Trust Fund (TETFund), Arc. Sonny Echono has offered insights into why the Fund’s management has adopted Memorandum of Understanding (MoU) instead of contract in execution of academic/professional development (training) programmes.
He condemned what he described as “baseless allegation on social media,” allegedly being employed to distract and malign the management of the Fund without an iota of evidence.
Echono in a parley with newsmen in Abuja, listed numerous benefits of adopting the Framework Agreements and Memorandum of Understanding (MoU), saying MoU involves partnering, collaboration and cooperation while contracts are strictly an exchange of equal values.
He revealed that TETFund has, through the use of MoU, saved millions of dollars for the country as assistance, support and facilitation were provided without proportionate financial consideration.
He said it was a deliberate misrepresentation and mischief the constant and deliberate attempt in some quarters to present the academic/professional training programmes being implemented under Framework Agreements (MoUs) as procurement contracts.
He said this attempt to draw parallels with the provisions of the Public Procurement Act on approval thresholds and payment terms for contracts to insinuate wrongdoing is condemnable in view of the inherent benefits and flexibility provided by MoUs.
Echono listed some of the programmes entered into through MoU by the Fund, which have saved the country millions of dollars to include, BLACKBOARD, explaining that the normal cost is 12 dollars per user and that TETFund was able to get it at 2 dollars 90 cents per user as a result of the MoU for two million users.
The other programme according to him, is EDUNET, which is 15 dollars per user per course but TETFund got it at two dollars per user, per course (three courses were taken at six dollars per user).
He said: “Contracts have fixed terms and conditions with respect to scope, duration (contract period) and cost which are binding and enforceable. Framework Agreements/ (MoUs) are more flexible with only a single or few constants making it more favourable for the Nigerian environment and its peculiarities.
“In the MOUs for communication skills training and Blackboard digital learning platform, only the tuition/access fee per student/ trainee is fixed, thus allowing variability during implementation, without attendant penalties.
“When the MoUs were executed, there were 253 beneficiary institutions, which has now increased to 271 in scope change. Under a contract, an addendum contract will be required with same or different conditions/cost.
“Service contracts involving access or licence fees are typically based on availability, that is whether it is used or not and are subject to renewal on an annual basis with the possibility of price adjustment (increase).
“The MoUs under reference have 3-5 years duration and the cost per trainee remains fixed for the entire period. Both parties in an MoU are also interested in the utilisation/consumption of the product and work collaboratively to achieve the project objectives.”
He added that companies or firms adopt the MoU method as a penetration strategy when they desire to break into new markets, expand market share or build long term relationships.
“The implementation of the ICT Road Map which commenced in 2016 was predicated on the report of a study on the state of readiness and relative level of adoption of ICT by beneficiary institutions.
“It showed that various schools were at different levels, with some requiring additional investments in infrastructure, systems transformation and personnel training. Some schools are in remote locations with little or no broadband penetration.
“It is also common knowledge that Nigerians are slow in accepting and adapting to change. Recall slow response to Independent National Electoral Commission (INEC) voters registration and collection of PVCs, BVN, NIN, drivers license, passports and constant appeals for extension of time for JAMB UTME registrations, WAEC and NECO examinations among others,” he stated.
The TETFund boss, therefore, said it would not be in the national interest to enter into annual fixed contracts, when there is likelihood of a slow start and possible default with stiff penalties adding that Nigeria is replete with examples of such wastages.
“Predictably, the biggest challenge with the implementation of the two projects is getting credible student data, particularly current email addresses. Those presented at the point of registration have mostly been changed but the records were not updated resulting in multiple back and forth.
“The challenge is now being addressed by involving the Director of ICTs, Registrars and Students Union Government of each beneficiary institution to update the students records and speed up implementations,» he said.
According to him, since the inception of the Fund, particularly from 2011, content interventions including academic staff training, research and development among others, have had a different funding profile from infrastructure projects.
He added that the Fund also established the practice that payment of tuition fees and access charges for digital training in respect of academic staff development and professional training are made at the point of registration, usually in full.
“Even students in our beneficiary institutions pay fees and charges at the point of registration and not after the completion of their courses/programmes or after passing their examinations.
“To ensure compliance with its enabling law, the Fund negotiated the concession to retain at least 15 percent payment until after the completion of the entire task to allow for effective monitoring and certification of satisfactory performance/execution,” he stated.
Echono urged the public to ignore the constant and deliberate attempt by some individuals to create falsehood and malign the leadership of the Fund.
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