How Ministry Of Works Under Fashola Inflated Road Project From #9billion To #54billion After Dragging It For Five Years — Contractor Reveals
There was a heated exchange at the House of Representatives Ad-hoc Committee investigative hearing on Thursday after a construction company, DC Engineering Limited accused officials of the Federal Ministry of Works under former Minister, Babatunde Fashola, of inflating a road contract from N9.8billion to N54.3billion.
The road contract in question was the construction and rehabilitation of the 41-kilometre Ijebu-Igbo-Ita-Ibadan Road which had been halted for over five years after its award of contract became a source of deep concern leading to the setting up of an Ad-hoc Committee by the Speaker, Tajudeen Abbas.
The Executive Director of DC Engineering Ltd, Engr. Ade Adedeji who was summoned for appearance by the Chairman of the Committee, Hon. Kwamoti Bitrus Laori, revealed in full glare of the public that the contract was supposed to be completed within two years but it took the Federal Ministry of Works five years (2018 to 2023) before it was able to pay 15 percent mobilisation fund of N1.3 billion.
“The slow pace of work was due to lack of release of funds,” he said.
According to him, the 15 percent mobilisation fee was paid in several instalments until about a few weeks ago when the last instalment of the 15 percent was paid.
Adedeji said his company had approached the Ministry of Works to review the contract sum from N9.8 billion to at least N14 billion due to the high cost of materials, but the ministry of works refused.
He said they were surprised to notice that the same ministry that refused to review the contract upward to at least N14 billion, re-awarded the same contract to AREATECH Construction Ltd at the sum of N54.3 billion without the termination of their contract.
The Director of Highways South, Federal Ministry of Works, Engr. Adedamola Kuti, who represented the ministry before the committee, said the ministry had terminated the contract of DC Engineering since September 2022.
He was, however, silent on why they refused to review the contract sum upward to at least N14 billion as requested by the DC Engineering but went ahead to re-award the same contract to another company, AREATECH Construction Ltd at the sum of N54 billion.
When asked to provide the details – letter of termination of contract with DC Engineering Ltd, certificate of no objection from the Bureau of Public Procurement (BPP) to AREATECH Construction Ltd and Federal Executive Council’s approval letter, he promised the probe panel that he will go and come back.
In the submission of the Solicitor, Tolu Babaleye & Co on behalf of the DC Engineering Ltd, the company alleged that the activities of Hon. Tolulope Akande Sadipe, a member representing Oluyole Federal Constituency of Oyo State, had been frustrating the efforts of his client to execute the project.
The representative of the Public Complaints Commission, Hon. Asuwaju Folawuyo Bello, (Commissioner, Oyo State) blamed the mess of the Nigerian Roads on the activities of the ministry of works officials.
Bello, who said they have received several complaints over the said project, expressed dismay on how a project that is supposed to be completed within 24 months (two years) will take the Federal Ministry of Works five years to pay only 15 percent of the contract sum.
The ad hoc committee chairman, Laori directed the Federal Ministry of Works and all other relevant parties to submit the required documents to the committee’s secretariat before or on Monday 11 September, 2023.
The committee then adjourned sine die.
