NASS uncovers, begins probe of ghost N19bn 2011 Eastern rail contract
Nigerian Federal House of Representatives has resolved to investigate a contract awarded in 2011 for the rehabilitation of the Port Harcourt-Makurdi section of the Eastern Rail Line valued at N19.2bn. The House is especially probing into the allegation that the contract was awarded to a ghost firm. The Minority Leader, Ndudi Elumelu, moved a motion of urgent public importance at the plenary on Monday, which was unanimously adopted by the House. The motion was titled ‘Need to Investigate the N19.2 Billion Railway Rehabilitation Contract Awarded to Eser Contracting and Industry Company Incorporated.’
The junior brother to the current chairman of UBA, Elumelu said, “The House notes that Eser Contracting and Industry Company Incorporated was awarded the contract to rehabilitate the 463km Port Harcourt-Makurdi section of the Eastern Railway Line for N19.2bn in March 2011.
The railway rehabilitation work was divided into three sections, namely 463km Port Harcourt-Makurdi track, 1016km Makurdi-Kuru track and 640km Kuru-Maiduguri track, and the three sections were awarded to three different companies. “There are allegations that while carrying out due diligence on Eser Contracting and Industry Company Incorporated, it was discovered that the company was not in existence, as it was not duly registered with the Corporate Affairs Commission.
