Toba Owojaiye Reporting
A construction company known as DC construct Engineering Limited, has accused officials from the Federal Ministry of Works of significantly inflating the cost of a road contract.
The company made the allegation during an investigative hearing conducted by the House of Representatives Ad-hoc Committee.
The contract in question is for the 41-kilometer Ijebu-Igbo Ita Ibadan Road, which has experienced prolonged delays since its award.
DC Engineering Ltd’s Executive Director, Engr. Ade Adedeji, revealed that the original contract, which was supposed to be completed in two years, was initially priced at N9.8 billion. However, the Ministry of Works took five years to disburse the 15 percent mobilization fund of N1.3 billion, citing a lack of funds as the reason for the slow progress.
Adedeji presented documents, including the contract award letter, to support his claim of inflation. He stated that his company had requested a contract sum review to at least N14 billion due to rising material costs, but the Ministry refused. Surprisingly, the Ministry then re-awarded the same contract to AREATECH Construction Ltd for a staggering N54.3 billion without terminating DC Engineering’s contract.
Engr. Adedamola Kuti, representing the Ministry, acknowledged the termination of DC Engineering’s contract but provided no explanation for not approving the requested sum increase. He promised to return with the requested documents.
DC Engineering Ltd alleged that a member of the House of Representatives, Hon. Tolulope Akande Sadipe, had interfered with their project execution efforts and promoted AREATECH Construction Ltd for the contract. Both Kuti and Sadipe denied any wrongdoing.
The confusion deepened when DC Engineering Ltd’s Executive Director claimed that the Ministry had paid them a portion of the 15 percent mobilization fee just two weeks ago, contradicting the Ministry’s termination claim.
The Olojuoro Road Joint Communities Forum clarified that only DC Engineering Ltd’s equipment was on-site in July 2023, conducting what they termed “palliative work.”
Recent events include a warning from the Minister of Works, Senator David Umahi, against irregularities during a meeting with contractors and ministry officials. The Public Complaints Commission’s representative blamed the ministry for the project’s delays.
Chairman Laori directed all relevant parties to submit required documents to the committee’s secretariat by September 11, 2023, as the committee adjourned sine die. The nation awaits further developments in this unfolding saga.