Ekiti: Fayemi blames Oni for paying billions for uncompleted contracts

The government of Ekiti State paid billions of naira to contractors for jobs not executed, it has been revealed.







The payments were made by the ousted Segun Oni administration.

In most instances, the contractors were paid in excess of work done. Besides, some had their contracts terminated after receiving between 20 and 50 per cent payment of the contract sum without any refund.
Some abandoned the contracts after receiving part payment.

These facts are contained in a report by the Contract and Consultancy Review Committee (CCRC) set up by the Dr. Kayode Fayemi administration to review contracts awarded between May 2007 and October 2010.
The report is published by the state as an advertorial in this newspaper. It contains the committee’s work as at March 31. The committee examined about 89 projects awarded to 63 companies. 

According to the report, contractors, in most cases, were paid in excess of work done. Many of the contracts lie uncompleted.

They include the dualisation of Ado–Iworoko–Ifaki road, awarded to Messrs Hajaig Construction at N7, 471,743,345.46. 

The committee found that while only 30 per cent of the project was executed, the contractor was paid N5,116,380,847.42 (69 per cent), indicating that it earned N2,924,857,838 "in excess of work done."

In the case of the Emure–Supare road (13.3km), Igede-Ilawe road (9.5km) and Ipole-Iloro–Ogotun road (11.8km), awarded to Messrs Dortmund Construction Limited, a substantial part of the contract sum was released, but the project was not completed. The committee noted that the drainage part of the three projects was not done.

The committee also noted that the contract in respect of the Iludun-Eda Oniyo-Obo Ayegunle road (Kwara State), Isinbode-Iro-Irun roads (Ondo State), awarded to Borino Prono and Co. Ltd, was allegedly over valued to the tune of 82 per cent (about N73,192,894.45).

On the contract for Ijesa-Isu-Ode road, awarded to Konstruja Ltd. at N312, 053,806.53, the committee said "it was terminated on May 26, 2007, as a result of poor performance," after the contractor had collected N40, 122,456.48" for work not done."

The committee also noted that majority of solar powered street light projects, particularly those at Fajuyi Police Headquarters, Ojumose junction, NTA road, Old Motor Park-Ministry of Works, were abandoned after funds had been released by the state. The contracts were awarded at N1.35 million per pole.

The committee said the Ijesa-Isu -Ode road awarded to Parsons Science Engineering at N384,390,592.90 was re-awarded in 2008 and reviewed upward.

It discovered that although the project was 73 per cent completed, "the excess of N40,122,450.48 hitherto paid to Konstruja Ltd in respect of the same contract should be recovered."

On the contract for the Egbe-Imesi road, also awarded to Parsons Science Engineering, the committee recommended that from what it had been paid, "the excess sum of N4,000,000 should be deducted from the retention sum of N18,066,058 due to the contractor.


The committee recommended the cancellation of some contracts, the renegotiation of some and the need for some contractors to be reimbursed to enable them perform.

• Facebook
• Twitter
• Linkedin
• Pinterest

Click to signup for FREE news updates, latest information and hottest gists everyday


Advertise on NigerianEye.com to reach thousands of our daily users

You Might Also Like

« PREV

NEXT »