THE House of Representatives have set a Monday, September 11 date, for the resumption of hearing into the alleged inflation of the 41km Ijebu Igbo-Ita-Ibadan road contract from N9.8 billion to N54.3 billion.
The Chairman of the Ad-hoc Committee, Hon. Kwamot Laori, while speaking to all interested parties at the start of the hearing last week Thursday, called for evidences as the only solution to the ongoing investigation.
“Investigative hearing was organised to probe the consistent failure of the contractor to fulfil the contract obligation for the construction of Olomi-Oloju Oro road also referred to as Ijebu Igbo – Ita – Ibadan road,” Laori said.
“It is our desire to hear from all sides and I want to tell you, Ladies and Gentlemen, we are not here to pass judgement.
“We are here to find out what happened and the judgement will be delivered in the plenary because we have to go to House where the decision will be taken.
“I want to implore us to be frank so as to get to the root of this problem for it to be solved and I want us to be concise.
“We are not here to witch-hunt anybody, we are not here to trample on the rights of anybody.
“Everybody that appears here has an equal right to be heard and we will really do so,” the Chairman emphasized.
While speaking on the investigation, the Executive Director of DC Engineering Limited, Engineer Ade Adedeji, explained that the reason the contract wasn’t completed within two years and dragged on for 5yrs, was down to the inability of the Federal Ministry of Works to pay the 15% mobilisation fund of N1.3 billion.
According to him, after 6 months of the commencement of clearing and earthworks, the company was mobilized with the payment of N452 million against the N1.4 billion sum, which amounts to 15% of the N9.8 billion.
Adedeji further explained that the contract was awarded on 3rd July 2018, with the company mobilized to the Ijebu Igbo site and operation being carried out for about three months.
After a period, factors such as the demolition of residential apartments, mosques, churches and economic trees, as well as the villagers’ request for compensation, saw the operation moved to the Ibadan section, he explained.
While presenting the relevant documents such as the letter of the award of contract, among others, the Engineer claimed that Ministry of Works failed to fund the contract after DC Engineering Limited put in a request for upward review of the contract sum from N9.8 billion to at minimum of N14 billion owing to the high cost of materials.
Adedeji expressed his shock at the Ministry re-awarding the same contract to AREATECH Construction Limited at higher sum of N54.3 billion form theirs.
This, he went on, was despite the company’s contract not yet been terminated by the Ministry.
In his reaction, however, the Director of Highways South, Federal Ministry of Works, Engineer Adedamola Kuti, argued that the ministry had terminated the contract of DC Engineering in September 2022.
On why the Ministry refused to review the contract sum up to a minimum N14 billion as requested by DC Engineering, the Director had no reply.
The Director also had no reply as to why the Ministry re-awarded the same contract to another company, AREATECH Construction Ltd, at a far higher sum of N54 billion.
The Director also didn’t have at hand relevant details, like the letter of termination of the 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, when queried by the Reps panel on it.
Legal Counsel to DC Engineering Ltd, Tolu Babaleye & Co., claimed that his client had issues regarding the execution of the project due to the “activities” of Hon. Tolulope Akande Sadipe, a member representing Oluyole Federal Constituency of Oyo State.
“Our Client is also very much aware of the activities of Hon. Tolulope Akande Sadipe, a member representing Oluyole Federal Constituency whom our client informed us has turned to a torn in its flesh and who has been promoting AREATECH Construction Ltd as a contractor to the Federal Ministry of Works and Housing for the contract to be re-awarded to the said company for a reason best known to her.
“This vexed issue is known to everyone in the ministry, especially two particular directors working hand in hand with them and all attempts have been made to re-award the contract for the sum of 54.3 billion Naira from the initial contract of 9.8 billion Naira to AREATECH Construction Ltd whom we understand had signed an agreement with the ministry and had submitted advance payment guarantee from its bank.
“This is a big distraction to our client. Please note that our client wrote for an upward review of this contract sum to an amount far below 54.3 billion Naira but the request was ignored and yet some people in the ministry wanted to re-award the job to someone else for 54.3 billion Naira all in a desperate attempt to defraud the Federal Government of Nigeria,” the statement of DC Engineering Ltd’s legal team to the ad hoc committee read.
The Director of Highways South, Federal Ministry of Works, Engineer Adedamola Kuti, has, however moved to dispel suggestions of a deal with Hon. Sadipe.
Hon. Sadipe also distanced herself from claims of any relationship with the said contractor, AREATECH Construction Ltd.
Note that Hon. Sadipe’s motion gave rise to setup of the Ad-hoc Committee.
This has given birth to fears by the contractor that the panel might become biased as a result.
Hon. Laori has now moved to downplay such claims, stressing instead that Hon. Sadipe is not a member of the committee and plays no part in its activities.
