Alleged N54bn contract inflation: Counter accusations rock ministry as Reps committee summons Director

The Hon. Kwamoti Bitrus Laori ad hoc committee had last Thursday, visited the project site in Ibadan, Oyo State, and parts of Ogun State before inviting the Federal Ministry of Works and the contractor for a meeting with the lawmakers on Tuesday.

However, about three weeks later, neither Kuti nor any official of the ministry was able to make a copy of the termination letter available. The ministry officials were also unable to provide any letter regarding the approval by the Federal Executive Council and Bureau of Public Procurement authorizing the re-award of the project to another contractor at N54 billion. They did not also provide any piece of information regarding the bidding process.

When the lawmakers asked the representatives of the Ministry of Works, led by Engr. Agboola Olajide, Deputy Director, Highway, to justify the re-award of the project, there was confusion among them. Olajide later said the termination letter had not been issued, but the project has been rewarded to another contractor, Areatech Construction Ltd, since September 2022. He noted that it is the duty of the legal department to issue such a letter.

During the inspection of the project by the lawmakers last Thursday, it was observed that a company, Duhu & Sons Construction, was handling 7km out of the 45km road. The company was awarded 14km and mobilized in 2011, but it was reviewed to 7km in 2013 and still paid some money. After five years of neglect, 45km was awarded to DC Engineering, inclusive of that of Duhu & Sons.

In the documents sighted by our correspondent, a final warning letter was given to DC Engineering Ltd on December 26, 2022, while Engr. Kuti told the committee that the Ijebu-Igbo Ibadan road contract was re-awarded to two companies in September 2022. He claimed it was awarded to two companies to work from both ends, Oyo and Ogun States.

Similarly, a letter referenced, BPP/S./CCM/23/VOL./358 dated May 10, 2023, from BPP indicated that the ‘Certificate of No Objection’ granted to the Ministry of Works in favour of ‘Areatech’ has been suspended. BPP based its decision that a letter of termination is required before a certificate of no objection will be issued to another company.

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