FG to Recoup N7bn from Contractors
Spends N187m on two ecological projects
From Josephine Lohor in Abuja
The Federal Government yesterday began the judicial process of recouping about N7 billion from about 131 contractors who were given jobs in four federal ministries.
They are Ministries of Works, Education, Science and Technology and Defence.
This is a fallout of the first quarterly report of the Implementation Committee on Failed and Non-Performing Contracts (1976 to 1998) submitted by the Minister of Works, Senator Adeseye Ogunlewe, to the weekly Federal Executive Council (FEC).
The FEC also approved about N187,880,478.03 for ecological projects in Osun State (Apomu flood and erosion control infrastructure at N149,316,763.28) and another N38,563,714.75 for the construction of Ogbere-Awotunde flood and erosion control structure at Ibadan, Oyo State.
Ogunlewe said that after an extensive review of a white paper by a commission of enquiry established to take stock and assess failed and non-performing contracts at the inception of the Obasanjo administration in 1999, about N7,091,714,527 is expected to be collected back from 65 contractors in the Ministry of Works; 49 from the Education; 11 from Defence and six from Science and Technology.
Although, Ogunlewe noted that "it will not be easy to get the sum total because some of the contracts were denominated in foreign currencies and some in local currency," a cursory look at the amount in a document made available reveals that failed contractors in Ministry of Works would refund about N1,734,251,608, $3,335,175.7 and another 1,53,481,179 in French Francs.
Contractors in the Ministry of Science and Technology are expected to cough out N1,321,500; Defence (N2,372,973) and Education (N792,357,373).
Another document, however, reveals that "some of the defaulting contractors (which include Chief Rochas Okorocha on behalf of Messrs Urashi Enterprises Nig. Ltd, P.W. Nigeria Ltd, Dumez Nigeria Plc, FGN Okoye and Sons Ltd, Mould Nigeria Limited and CIC Construction Company Ltd) had written the committee rejecting the claim for settlement of the outstanding contract sums and making counter demands in some cases.
"Others had also written in response to advert newspaper publication in respect of their companies, prior to the commencement of the assignment."
Other companies who have protested in the committee are Messrs Otokiti Nigeria Ltd, Nigeria Dynamic Ltd, Interban Construction Ltd, Ralawal Construction Company Ltd, Poat Engineering Development Company Ltd and Danz Survey and Consultant.
Giving an insight into the judicial process to be embarked upon, Minister of Information and National Orientation, Chief Chukwuemeka Chikelu, said that "what FEC has requested the Attorney-General to do, is that the Chief Justice of Nigeria or the chief judges of various federal high courts be requested to designate a court within their own judicial circuit to handle these cases of failed contracts. We are not talking of establishing new courts outside of the existing judicial system, but requesting certain courts to handle this matter, so that they can be expeditiously discharged.
"We felt that one option was to have a court that could deal with matters like this. Not just failed contracts, but other such financial matters. We are going to get a report from the Attorney-General as to the feasibility of that. The important thing is that we must recover for the Nigerian treasury, monies that are illegally in the hands of contractors who have abandoned their projects and that is all we are trying to do."
Chikelu also recalled that "when this administration came in, you know that one of the major problems that they decided to confront was the problem of abandoned projects. A lot of projects across the country are abandoned for which mobilisation had been paid, but had not been implemented or had not reached the requisite stage in terms of implementation or execution."
The Minister of Special Duties, Inter-Governmental Affairs and Youth Development, Mr. Frank Nweke Jnr, while speaking on the two ecological projects approved by FEC, noted that "as usual, these projects went through due process certification prior to presentation to the council and the contractors that are going to handle them are as follows: For Apomu Project, the contract is Braff Construction Ltd. The Second contractor is Platform Nigeria Limited. It is expected that these projects will be completed within 12 months."
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