DC Engineering Ltd, a civil engineering company has alleged that a lawmaker at House of Representatives and officials of Ministry of Woks of inflated the contract sum for the construction of Ijebu-Igbo/Ita Ibadan Road.
Mr Ade Adedeji, Executive Director, DC Engineering Ltd, said this when he appeared before the House of Representatives ad hoc committee on non-construction and rehabilitation of Ijebu-Igbo/Ita Ibadan Road in Abuja on Friday.
He said that the contract was inflated by N44.5 billion, from N9.8 billion to N54.3 billion, saying that the 41km road project was awarded to the company in 2018 at N9.8 billion with a completion period of two years.
Adedeji said that it took the ministry five years from 2018 to 2023 to release the 15 per cent mobilisation fee of N1.3 billion.
He said that the non-release of funds was responsible for the slow pace of work, saying that the 15 per cent mobilisation fee was paid in installments.
He added that the last installment was paid few weeks ago.
Adedeji said that the company approached the ministry to review the contract from N9.8 billion to N14 billion due to inflation, but the ministry refused.
He said however, that the company was surprised to notice that the same ministry had re-awarded the contract to another company, AREATECH Construction Ltd at N54.3 billion without terminating the original contract.
Mr Adedamola Kuti, the Director, Highways South, Ministry of Works, who represented the ministry, in his presentation said the ministry terminated the contract in September 2022.
He was however, silent on the request to review the contract to N14 billion by the DC Engineering.
Kuti also denied allegation that a lawmaker was involved in the review of the contract sum.
Rep. Kwamot Laori, the Chairman of the committee, said it was not out to witch-hunt people but to ensure the root causes of failure of the road project were dug out.
