A National Assembly joint committee on Monday revealed the names of road contractors who allegedly failed to complete or start work after collecting money from government.
The revelation was made during the budget defence for 2024 by the Federal Ministry of Works when the Minister of Works and former governor of Ebonyi State, David Umahi, led top officials of the ministry to appear before the Joint House of Representatives and Senate Committee on Works for the budget defence.
In his opening address, the minister explained that the defunct Federal Ministry of Works and Housing was allocated the sum of N534.4 billion for the 2023 fiscal year, with N383.3 billion capital allocated to the Federal Ministry of Works after the merger.
He stressed that out of the capital expenditure, a paltry sum of N184.16 billion was released by the Federal Government.
After remarks by members of the committee comprising lawmakers from the lower and upper legislative chambers, the chairman of the committee, Senator Barinada Mpigi, asked Umahi to explain the budget performance of the 2023 fund appropriated to the ministry before asking for that of 2024.
Responding, Umahi said the amount of releases for 2023 was well utilised on executed roads and bridges.
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 minister’s submission stoked anger as funds disbursed to contractors were not reflected in his submission to the panel.
The chairman of the Senate Committee on Works, Senator Barinada Mpigi, representing Rivers South-East senatorial district, revealed that his committee had visited some road construction and rehabilitation sites and had first-hand information on how contractors were defrauding the Federal Government.
He blankly told the minister that some contractors had been mobilised with various sums of money and had disappeared from sites after collecting money.
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.
“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.”
Mpigi promised to bring the affected contractors and ministry officials to a roundtable for discussion.
‘Contractors abandoned road construction, rehabilitation after payment of N184bn’ – Senator Mpigi
