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11 Contractors Pocketed N4 Billion after mobilisation – Senate

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Senate on Wednesday unveiled 11 companies which recorded zero execution in 2015 budget performance after over N4 billion have paid to the companies as mobilisation.

Image: Minister of Power, Works and Housing, Mr Babatunde Fashola

Senate on Wednesday unveiled 11 companies which recorded zero execution in 2015 budget performance after over N4 billion have paid to the companies as mobilisation.

 

The Senate Committee on Works, chaired by Senator Kabiru who made this known during 2016 budget defence said that the development is unacceptable to the Committee.

Affected roads according to the committee were Otukpo township road, in which N1b was paid to the contractor but the level of execution is zero.

The same goes for Alessi Obe road in Cross River state where N500m was paid as mobilisation, N500m was also paid in Ogoja road while N1b was paid for the dualisation of Kano-Katsina road with zero performance.

 Gaya vowed to unravel the names of the companies that collected mobilization fees and failed to start work.

Gaya said,”11 contractors have collected mobilization fees and there is zero implementation, some collected N500 million and one of the contractors collected N1 billion.

“For instance, in the case of dualisation of Otukpo township road, N1 billion was paid to the contractors.

“Minister you need to check that and give us details in the next meeting. There is no point giving a contractor mobilization fee when he cannot perform,’’ he said.

Speaking on the ministry’s 2016 budget proposal, the chairman pointed out some roads in the country that were given zero allocation.

He urged the minister to consider some of the roads in view of their link to major cities in the country.

The lawmaker said the committee would work on the budget proposal to ensure that funds were properly and adequately allocated.

“I appreciate your effort and concern hon. Minister  but we  have to know what u are spending every year on the road and how to generate funds and see how we can achieve success,’’ he said.

In his response, the Minister of Power, Works and Housing, Mr Babatunde Fashola, explained that not all the contractors who were mobilized had zero performance.

“It is important to take the assessment that the committee has made on mobilization into context. In my document, contract performance is not zero.

“My understanding here is that  going by the entire contract sum of N9.9 billion, by law,  the contractors should get at least 15 percent  to move to site.

 

“The part where we have zero performance in the document, if a contractor was supposed to get N1.5 million and he got N500 million, he cannot be mobilised. We will check and  get back to you,’’ he said.

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