Non-performing contracts, more politics than performance, Umahi tells Senate
By Haruna Salami
The Minister of Works, David Umahi has said that some contractors handling Federal Government road projects play more politics than performance on site.
He made this disclosure to members of the Senate Committee on Works during an investigative hearing.
Some of the construction companies in attendance were Gitto, Setraco, RCC, Senate, CCECC, etc. Unfortunately, construction giant, Julius Berger was absent at the important hearing.
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The Chairman Senate Committee on Works, Senator Mpigi Barinada took exception to the behaviour of Julius Berger, which bided for the road under investigation and was absent for the second time.
He directed that Managing Director of the firm be brought before the committee the next day or “we use our power to issue a warrant of arrest”.
Some of the road projects under the scrutiny of the committee, according to the chairman, include Odukpani-Itu Road, East-West Road, adding that Odukpani-Itu road project was awarded in 1975 to JB, Somatec, CCECC.
He regretted that Julius Berger has been insisting things must be on their own terms.
He said the Eleme road is still in bad state though Port Harcourt Refinery has started production and contract have received N33 billion.
On Odukpani-Itu road, a distance of 22 km, the contractor said 5 km has been completed in 2 years and N12 billion paid, but the minister said it was 4.3 km completed and N15 billion paid.
He vowed that the ministry will remove the Controller of Works in the state and “remove our staff and inject new staff”.
He told the senators that there are lots of problems with NNPCL tax credit scheme as payment is often delayed up to 6 months when in actual sense the agreement says 30 days, adding “any project that the money finishes, the project stops”.
He said “there must be different funding for road projects such as loans, etc.
On East-West Road, the Eleme Junction to Uniport awarded to RCC in 2014 by Ministry of Nigeria Delta at the cost of N156 bn was taken over by the Federal Ministry of Works.
The MD of RCC, Nader Yusuf said the company mobilised to site in 2022 with $10 million asphalt equipment and in January 2023, FMW changed from asphalt to concrete pavement. He said they are waiting for “addendum” of the new scope to be prepared and signed.
According to him, they are doing concrete work by hand as the equipment were not available and it takes about 6 months to arrive.
When the chairman of the committee, Senator Mpigi asked the minister on what he had to say, Umahi said “I had wished this cup pass over me” adding “there is more politics than performance”.
Umahi who said he had any problem signing any agreement with RCC, said he was convinced “RCC has no capacity to finish the job” and will not hesitate to terminate any contract.
