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Home»General News»Alleged contract inflation: Reps committee visits Ibadan road projects
General News

Alleged contract inflation: Reps committee visits Ibadan road projects

Alleged contract inflation: Reps committee visits Ibadan road projects
NewsdeskBy NewsdeskSeptember 22, 2023Updated:September 22, 2023No Comments2 Mins Read
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The House of Representatives ad hoc committee investigating alleged slow pace of Ijebu-Igbo Ibadan road project, and inflation of the contract sum from N9.8 billion to N54 billion, has visited the project site.

The visit by the committee is to ascertain the alleged inflation of the contract sum.

The chairman of the committee, Rep. Kwamoti Laori, led other members to assess the level of work done against the backdrop of Messrs DC Engineering company’s allegations over contract sum inflation.

During investigative hearing, DC Engineering alleged that a lawmaker connived with officials of the Federal Ministry of Works to re-award the contract.

Engr. Ade Adedeji, the Executive Director, DC Engineering Ltd., had alleged that the contract was re-awarded to another contractor from its original contract sum of N9.8 billion to N54 billion.

He said in spite of his company’s request and plea, officials of the ministry refused to heed their plea for an upward review of the project to at least N14 billion.

He, however, lamented that the ministry rather went ahead to re-award the contact to another company, Areatech Construction Ltd. for N54 billion.

The Bureau of Public Procurement (BPP), cancelled its certificate of ‘No Objection’ it earlier issued Areatech Construction Ltd., maintaining that DC Engineering was the original contractor and was still on site.

BPP based its action on the ground that no project shall be re-awarded to another company without the termination of the initial contact.

BPP confirmed its withdrawal of the no objection certificate to Areatech Construction Ltd. in its letter of May 10, and addressed to the Solicitor of DC Engineering Ltd.

Meanwhile, during the lawmakers’ oversight visit, the chairman of the committee assured the community and DC Engineering Ltd. that they were on tour of the project site for an assessment.

The chairman said the House of Representatives would ensure that everything was settled amicably road ensure completion of the project.

The tour covered the entire 41km road project which included Iyana Shehu, Ile-Epo Lucas Station, Ile-Epo Inukan, Olunde Junction, Fatusi bridge, Arogo, Aiyegun Market, Lanfa Bridge among others.

Some officials of the Federal ministry of works as well as DC Engineering Ltd. and several other workers were in attendance during the lawmakers’ visit to the site. 

House of Representative
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