The Nation Newspaper

Tag: Contractor

  • ‘How contractor got billions illegally’

    ‘How contractor got billions illegally’

    A  Federal High Court in Abuja yesterday heard how the Federal Ministry of Works allegedly paid billions of naira to a contractor illegally.

    The court, presided over by Justice Adamu Bello, was told how the ministry “side-stepped provisions in an agreement to accommodate an incompetent concessioneer”.

    The ministry’s Deputy Director, Highways, Dominic Tarzaa Abishigh, made the disclosure in his testimony as the second prosecution witness in the trial of former Minister of Works Hassan Muhammed Lawal and nine others.

    The others are Adeogba Ademola; his company, Digital Toll Company Limited; Dave Enejoh; Okala Yakubu; Thahal Paul; Swede Control Intertek Ltd; Promon Vital Ventures Ltd; Wise Health Services Ltd and Abbey Building Society.

    The defendants are on trial for alleged irregularities in the award of the N24.36 billion contract for the construction of a bridge across the Benue River from Buto (Nasarawa State) to Bagana (Kogi State).

    Lawal is accused of authorising the payment of about N3 billion to the contractor, Digital Toll, an act said to be in breach of the contract agreement.

    Abishigh, who was led in evidence by prosecution lawyer Wahab Shittu, said the concessionaire was expected to contribute 60 per cent of the contract sum; the Federal Government 20 per cent; Nasarawa and Kogi states 10 per cent each.

    The witness, who said he had been a deputy director in the ministry for eight years, said the Federal Government, Nasarawa and Kogi states contributed about N6.4 billion in May, but the concessionaire made no contribution.

    He said in view of Digital Toll’s failure to meet its obligation, parties reached a compromise to pay contractors and consultants engaged for the projects from funds contributed by public partners.

    The witness said the compromise agreement, reached at a July 6, 2010, meeting presided over by Lawal, was in breach of the contract since it (the contract) was not amended.

    Abishigh said: “It was because of the concessionaire’s failure to perform his obligation that the compromise decision was taken, with a caveat that the concessioneer should pay up within a given time.

    “From the progress report made by the ministry’s Public Private Partnership (PPP) Unit, I am not aware of any payment made by the private partner into the Joint Account”

    The witness said the public partners were wrong to have paid the concessionaire and consultants without its contribution.

    The case was adjourned to October 21.

     

     

     

     

     

     

     

  • Imo to confiscate equipment abandoned by contractor

    Imo to confiscate equipment abandoned by contractor

    Imo State Governor Rochas Okorocha has said the equipment abandoned at several construction sites by J-Pros Int’l Nigeria Ltd will be confiscated as part of measures to recover the money paid to the erring contractor.

    The firm was paid N1.2billion by the government for the construction of the Sam Mbakwe road, which it abandoned after allegedly paying gratification of N458 million to former Deputy Governor Jude Agbaso.

    Agbaso was impeached by the House of Assembly after the firm’s Managing Director accused him of collecting the money, which led to the stoppage of work due to paucity of funds.

    According to the governor, who addressed reporters while inspecting the Sam road, “the State Executive Council will confiscate equipment abandoned at the site by J-PROS.

    “The Attorney-General will take every necessary legal action to ensure that government recovers the unmerited fund paid to the company.

    “We are determined to ensure the completion of this project. Recall that it was among the very first project we embarked upon shortly after we came on board, but due to the unfortunate incident involving the contractor and the former deputy governor, we are yet to complete it.

    “However, the State Executive Council had resolved that the Ministry of Works takes over the project and ensure its completion through direct labour and by engaging genuine contractors.”

    Work has resumed on the dual carriage road project under the supervision of the Ministry of Works.

  • Contractor resumes work on abandoned Abuja road

    Contractor resumes work on abandoned Abuja road

    The Diamond Construction Limited has resumed work on the abandoned Gosa dumpsite access road in the FCT, the News Agency of Nigeria (NAN) reports.

    A NAN correspondent who visited the site, reports that machines which were earlier removed from the site had returned and that the company’s vehicles were seen moving materials back to site.

    NAN also recalls that the 12km contract which was awarded by the Federal Capital Development Authority (FCDA) at the cost of N422 million in 2010 to be executed in six months had been abandoned since early 2012.

    Mr Kingsley Obiakor, the Group Managing Director of the company told NAN on Thursday in Abuja said the company’s return to site was sequel to FCDA directive that work should resume and with a promise that payment would come subsequently.

    Obiakor attributed the delay in the completion of the project to the lack of payment.

    According to him, FCDA had paid N112 million as part of its mobilisation fee and no more thereafter.

    His words: “We were given this job to execute it for a period of six months and we started work immediately.

    “ FCDA, after paying us the initial N112 million, have not paid us any more money as approved by the procurement Act.

    “So, it is not our fault to have stopped work; but today we have resumed again because they have asked us to come back to site and they have promised to pay.’’

    The contractor also said the authorities had accepted to review the work in line with the current price of items in the market.

    Obiakor also said that the FCDA was to consider the contract sum due to the encroachment of the rail line corridors on the road project, which was not envisaged while awarding the contract.

    “We have sought for a review of the contract in line with the current prices of items in the market, considering that the job was awarded in 2010 and we are now in 2013.

    “Another area is the encroachment of rail line corridors on the road project in which the FCDA consultant did not take into cognizance while designing the project,” he said.

    Alhaji Ahmed Bello, the FCDA, resident Engineer supervising the project, in a telephone interview, told NAN that paucity of funds prevented the worked from being completed as earlier planned.

    Bello, however, gave an assurance that FCDA would ensure quick completion of the job even before the next rainy season.

    He expressed the authority’s concern over the 2012 experience where waste evacuation trucks could not access the dumpsite.

    NAN recalls that waste evacuation trucks had the problem of accessing the dumpsite during the last rainy season due to bad road, making the evacuation of refuse from the city difficult.