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Monday, 6 May 2013

Ogun road contract fraud: CACOL calls for probe



Coalition Against Corrupt Leaders (CACOL) has called on the Chairman, Economic and Financial Crimes Commission (EFCC), Mr.Ibrahim Lamorde, to investigate the alleged road contract fraud against Ogun state government.
CACOL said this in an open letter signed by its national chairman, Debo Adeniran, to the EFCC chairman asking him to investigate and expose the in-house engineer and external consultant that did the tender bid evaluation and recommended the China Civil Engineering Construction Company for the eventual award of construction of federal Ejinrin road.
The alleged road contract fraud against Ogun state government is contained in a report in the Nigerian Compass publication of Monday, 08 April, 2013, detailing the allegations of fraud being perpetrated by the Ogun State government led by Governor Ibikunle Amosun on road construction in the state.
According to the newspaper report, the Ogun State government in a memo, entitled: “Re: Request for Information on Capital Projects”, received at the Office of the Clerk of the Ogun State House of Assembly, which was signed by the Permanent Secretary in the Ministry of Works and Infrastructure, Department of Planning, Research and Statistics, Engineer Ademolake K.A, had given details of its total contract commitments as N96 billion (N96,016,704,187.58). Of the sum, the government claimed to have made advance payments of N18 billion (N18,231,940,850.00) to 14 contractors.
The government disclosed that it awarded the Sagamu-Benin Express Junction/Oba Erinwole Junction Road to a contractor, P.W. Nig. Ltd., for N8 billion (N8,046,000.000.00), out of which N2 billion has been released as Advance Payment. The government also indicated that the length of the road is seven kilometres and put the completion period of the contract at 15 months. The start date of the project was said to be 26th November 2012 and the expected date of completion is 26th February, 2014, whereas the percentage completion as at the date of the memo, according to the government, is 20.
This indicated that the government would spend a sum of N1.1 billion per kilometre on a township road, whereas the immediate past administration, within the same topography, spent N46 million per kilometre on the dualisation of the Bobasuwa junction of the Ejinrin road –Mobalufon, with median and street lights.
Furthermore, the state government said it awarded the construction of Ejirin/Folagbade/ Ibadan Road in Ijebu-Ode, Ogun State to China Civil Engineering Construction Company (CCECC), whereas the federal government has awarded the construction of this same federal road to the same CCECC following the request of the Ijebus to President Goodluck Jonathan during his campaign tour to Awujale of Ijebuland. The mind-boggling question is how can the CCECC enter into a contract with the state government on the road project when it already has a subsisting contract with the Federal Government on the same road?
Some of the residents complained that despite the demolition of hundreds of building complexes, stores and shops along the Ejinrin road, leaving thousands of the people homeless, work has not commence on the road in the last five months, while It has also been established that no single equipment has been moved to the Oba Erinwole Junction Road for which the government claimed it has paid N2 billion to the contractor.
It is worthy of note that the N18 billion claimed to have been spent on the road projects was borrowed from banks which means the state government would continue to service the loan from the state funds plunging the hapless Ogun State masses into quagmire of socio-economic enslavement.
Coalition Against Corrupt Leaders (CACOL) in it prayer urged EFCC to investigate the appropriateness or otherwise, of rehabilitating a-seven kilometre road with over N8 billion, as it suspect the case of contract inflation. “We urge you to also file appropriate charges against anyone found to have abused his office in this matter at the end of investigation,” he added.

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