EXPOSED: Contractors Abandoned Road Projects After Payment Of N184 Billion

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A National Assembly joint committee has revealed the names of road contractors who allegedly failed to complete or commence work despite receiving funds from the government.

This disclosure occurred during the budget defense session for the 2024 fiscal year by the Federal Ministry of Works, where the Minister of Works, David Umahi, led ministry officials to appear before a joint committee of the House of Representatives and the Senate on Works.NYSC Portal

Minister Umahi explained that in the 2023 fiscal year, the defunct Federal Ministry of Works and Housing was allocated a budget of N534.4 billion, with N383.3 billion allocated to the Federal Ministry of Works after the merger. However, only a small sum of N184.16 billion was released by the Federal Government for capital expenditure.

Upon inquiries from committee members, Senator Barinada Mpigi, the committee’s chairman, asked Minister Umahi to provide information on the utilization of the 2023 budget allocation before addressing the 2024 budget performance.

Umahi responded by stating that the funds allocated for 2023 had been effectively used for road and bridge projects. informationguidenigeria

He said: “The sum of N184,165,147,332.29 released up to date to the Ministry from the 2023 Budget Appropriation had been utilised for payments of some certified certificates for executed works on roads and bridges by highway, projects of Engineering Services and Common Services departments.

“It is to be noted that as of the end of November 2023, the ministry had a cumulative unpaid certificate in the sum of N1,507,873,365,516.02 (One Trillion, Five Hundred and Seven Billion, Eight Hundred and Seventy-three Million, Three Hundred and Sixty-five Thousand, Five Hundred and Sixteen Naira, Two Kobo) only for all inherited ongoing highway and bridge projects.”

The chairman of the Senate Committee on Works, Senator Barinada Mpigi, representing Rivers South-East senatorial district, said:JAMB Result

He said: “I want the press to hear me out. The contractor handling Aba-Owerri Road through NNPC Depot Express, Abia State, has been mobilised, and as we speak, he has not done any work. We don’t want to mention his name here. They have collected the sum of N76 million.

“The rehabilitation of roads in Kebbi State is being handled by Setraco. The company collected over N400 million and is presently not on site. In Ogun State, the contractor has collected over N25 million and has not been seen on site since then.

The name of the contractor is HMF Construction Limited; the rehabilitation of the Asaba-Agbor dual carriageway [is being handled] by Heartland Construction Limited. They were paid the sum of N50 million and have not been seen.JAMB Portal

“For the construction of the Bida-Pategi bridge across the River Niger in Niger State, the contractor has collected N400 million and he is not on-site; the construction of two-kilometre asphalt to Nnamdi Azikiwe University Teaching Hospital Nnewi-Oraifite in Anambra State by Zeerock Habitation International Services Nigeria Limited, the company collected over N97 million with zero performance; for the rehabilitation of kilometre 1, Bende road in Abia State linking Akwa Ibom, as we speak, he has been paid over N445 million. The name of the contractor is Defensive and Protective Concept Limited, with nil performance.

“We have more of this in Niger; we have more of this in Nasarawa; and we have it in the North East. In the North East, we have rehabilitation on Maiduguri-Gongola Road. The contractor’s name is Comet Nigeria Limited. The contractor collected over N3 billion. The contractor is not on site. The physical progress of that project is 0.88%.”

He continued: “In Bauchi, construction and rehabilitation of Wuyashi-Kakuri-Yauri Road, the contract number is 7639 which has been mobilised with over N12 billion. The contractor is not on site and so many others.”

Credit: Infoguide Nigeria

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