Monday, October 24, 2011

Massive Fraud Uncovered in Road Contracts in Abuja

Senate Committee on Federal Capital Territory (FCT) has uncovered a massive fraud in the Federal Capital Development Authority (FCDA) over duplicity in the award of expansion of Roads in Abuja amounting to about N147 billion. And unless reasonable explanation is offered as to the reason for the 'duplicity', a showdown is imminent in the seat of power.

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The Senator Smart Adeyemi-led FCT Committee discovered that the same road, with the same length and engineering design was awarded to two different companies at the whooping sum of N147 billion. One kilometre of road, it was further discovered, was estimated at N4 billion.

These facts were uncovered by the Senate FCT committee during an oversight on the road projects designed to ease the traffic congestion along the Kubwa–Abuja axis of the nation’s capital. Details showed that FCDA awarded the construction of the 19.5 kilometre road to CGC, a Chinese company at N81.9 billion in June 2009 with the completion date put at November 2011.

The project involves construction of left and right service carriageway, additional lane of main carriage way as well as rehabilitation of existing carriageways of Kubwa Express Road. Thereafter, the second part of the same road was awarded to an indigenous company, Dantata and Sawoe at N66.6 billion. The only difference in both projects, Daily Sun gathered, is that one has to construct a bridge across the road and the other has 800 metros added to its contract.

Completion date of the road project has been shifted to March 2012. Already, the committee has summoned the Federal Capital Territory Minister, Senator Bala Mohammed to explain the discrepancies in the contracts. The contractors have also been summoned to appear before the Senate FCT Committee.

Also invited is the Chinese firm, which is expected to explain to the committee how “it got the N81.9 billion contract with a clear difference of over N16 billion,” said Senator Adeyemi.  Also summoned to appear before the committee within one week is the supervising ministry and the officials from the Federal Capital Development Authority(FCDA).

Speaking with newsmen at the project site at the weekend, Senator Adeyemi who led other members of the committee on the tour, disclosed that he was a member of the same committee in the sixth Senate and discovered same discrepancy when the same contractor was directed to explain in writing to the committee.

“The contractor ignored the directive from this same committee in the last Senate.“Unfortunately, up till the present moment, there has not been any explanation or communication with the committee.”

Adeyemi explained further that, “ Dantata and Sawoe, an indigenous firm got same length of road for N66bn, CGC a foreign company got it for N81bn on the same terrain.“l don’t see any difference on the road. CGC should please and come and explain how it got the N81 billion with a clear difference of over N16 billion.” Speaking directly to CGC officials, Adeyemi said: “You cannot defend N16billion difference. We are going to summon you with the FCT Ministry and if we come to the conclusion that the contract is inflated, you will refund to the Federal Republic of Nigeria.

“It is unjustifiable; it is not acceptable to the Senate. We will get a different consultant to review the project. At the end of the investigation, if we find out that it was inflated, the difference would be refunded and paid into government treasury. The company even imported fabricated street light poles thereby wasting our scarce foreign resources. “This is a thing that could be done in Nigeria, in Nnewi, Anambra State. It would even be done better there. How, then, are we going to grow technologically?”

Members of the committee are alleging sharp practices in the contract, they threatened to deal with the contractor if found guilty, adding that the firm would be required to refund the difference to the nation's purse.
Additional reports by TheSUN.

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