How Reps’ member, FG officials inflated major road’s contract to N54bn

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Reps’ member, FG officials inflated
House of Reps

How Reps’ member, FG officials inflated major road’s contract to N54bn – Contractor

DC Engineering Ltd, a civil engineering company has alleged that a lawmaker at the House of Representatives and officials of the Ministry of Works inflated the contract for the construction of Ijebu-Igbo/Ita Ibadan Road.

Mr Ade Adedeji, Executive Director, DC Engineering Ltd, said this when he appeared before the House of Representatives ad hoc committee on the non-construction and rehabilitation of Ijebu-Igbo/Ita Ibadan Road in Abuja on Friday.

He said that the contract was inflated from N9.8 billion to N54.3 billion, saying that the 41km road project was awarded to the company in 2018 at N9.8 billion with a completion period of two years.

Adedeji said that it took the ministry five years from 2018 to 2023 to release the 15 percent mobilisation fee of N1.3 billion.

He said that the non-release of funds was responsible for the slow pace of work, saying that the 15 percent mobilization fee was paid in installments.

He added that the last installment was paid a few weeks ago.

Adedeji said that the company approached the ministry to review the contract from N9.8 billion to N14 billion due to inflation, but the ministry refused.

He said, however, that the company was surprised to notice that the same ministry had re-awarded the contract to another company N54.3 billion without terminating the original contract.

Mr Adedamola Kuti, the Director, of Highways South, Ministry of Works, who represented the ministry, in his presentation, said the ministry terminated the contract in September 2022.

He was, however, silent on the request to review the contract to N14 billion by DC Engineering.

Kuti also denied the allegation that a lawmaker was involved in the review of the contract sum.

Rep. Kwamot Laori, the Chairman of the committee, said it was not out to witch-hunt people but to ensure the root causes of the failure of the road project were dug out.

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