11 contractors pocketed N4b – Senate‎

The Senate Committee on Works on Wednesday revealed how 11 contractors collected N4 billion from the Federal Government and failed to mobilize workers to sites.
Although the‎ Committee, chaired by Senator Kabiru Gaya, refused to unveil the names of the contractors involved in the act, it described the development as unacceptable.
The Committee however announced the various roads abandoned by the contractors to include dualization of Otupko township roads and others in the South South and South East.
Gaya directed the Ministry of Works to feed the committee with details of the contracts awarded in 2015 and their status at a later date.
Gaya said: “Eleven contractors have collected mobilization fees and there is zero implementation.
“Some collected N500 million and one of the contractors collected N1 billion.
“For instance in the case of dualisation of Otukpo township road, N1 billion was paid to the contractors.
“Minister, you need to check that and give us details at the next meeting.
“There is no point giving a contractor mobilization fee when he cannot perform.”
Speaking on the ministry’s 2016 budget proposal, Gaya pointed out some roads in the country that were given zero allocation.
He urged the Minister of Works, Babatunde Fashola (SAN), to consider some of the roads in view of their link to major cities in the country.
The lawmaker said the committee would work on the budget proposal to ensure that funds were properly and adequately allocated.
He said: “I appreciate your effort and concern Honourable Minister, but we have to know what you are spending every year on the road and how to generate funds and see how we can achieve success.”
Responding to the development, Fashola, who is also the Minister of Power and Housing, explained that not all the contractors who were mobilized had zero performance.
He said: “It is important to take the assessment that the committee has made on mobilization into context.
“In‎ my document, contract performance is not zero.
“My understanding here is that going by the entire contract sum of N9.9 billion, by law,  the contractors should get at least 15 per cent to move to site.
“The part where we have zero performance in the document, if a contractor was supposed to get N1.5 million and he got N500 million, he cannot be mobilised.
“We will check and  get back to you.”
Speaking on the 2016 budget proposal, Fashola said N10 billion was budgeted for work on the Abuja-Lokoja Road.
He also said N16 billion was earmarked for Kano-Maiduguri Road, while the rehabilitation of Apapa-Oshodi Road in Lagos State would gulp N5 billion, among others.
According to Fashola, in a bid to do achieve result, the ministry has come up with a plan to implement road projects based on needs.
He said the ministry would consider Public Private Partnership to adequately generate funds for completion of road projects across the country.
He, however, called for a review of relevant laws to fast-track the processes involved in PPP, adding that the hitches experienced in the course of such partnership had  discouraged investors over time.