Business Hilights

Tracking Nigeria's Headline Business News Online

Tinubu Bola Ahmed

Why FG sacked some road construction contractors

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More facts have emerged on why the federal government terminated the road construction projects awarded to three companies. Key reason for the termination was due to their non-performance in line with the contractual obligations as required by the Standard Conditions of Contract. This was disclosed in a statement issued by the Special Adviser (Media) to the Minister of Works, Barr. Orji Orji, in Abuja. According to the statement, the affected contract numbers are 6136, 6137 and 6138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd respectively. The projects affected by this termination are the dualization of Obajana – Benin road, section II (Okene – Auchi) in Kogi/Edo State; the dualization of Obajana – Benin road, section III (Auchi – Ehor) in Edo State and the dualization of Obajana – Benin road section IV (Ehor – Benin) in Edo State.

“The Federal Ministry of Works has terminated contract numbers 6136, 6137 and 6138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd and RCC Ltd respectively.”

The statemeny noted that the termination of the said contracts became neccessary in view of the inordinate delay of the affected companies in job performance and their failure, neglect and or refusal to fulfill their contractual obligations as required by the Standard Conditions of Contract and this has affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.

“The projects which were awarded on 3rd December 2012 were advertently abandoned by the contractors and no genuine commitment or good faith was shown towards executing the projects after accepting the considerations offered by the Federal Government and thereby exposing the road users to untold hardship due to the deplorable condition of the projects.

“The Minister has therefore directed the engineers in charge to take necessary steps to enter upon both the site and the works and take the same over from the affected companies.”

He further directed the engineers concerned to, upon doing the needful, arrange with the affected companies for a joint measurement of work so far done by the said companies preparatory to taking over the sites from the said companies, and this directive is without prejudice to the exercise of other rights of Federal Government under the contract.

He warned that the Federal Ministry of Works under his watch will not condone acts of unseriousnes and sabotage by contractors 2 is determined to change the ugly narrative of Nigeria’s road infrastructure.

He further warned that going forward, the government will not hesitate in terminating all projects that are funded but are non-performing.

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