House decries contractors’ refusal to work after N4b mobilisation

The Senate Committee on Works yesterday expressed dismay over the refusal of some 11 road contractors to commence work ‎after collecting a total of N4 billion mobilisation fees.

It therefore, charged the Works, Housing and Power Minister, Babatunde Raji Fashola, to ‎immediately take steps to ensure that those contractors move to sites to ensure completion of those projects.
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The Chairman of the Committee, Senator Kabiru Gaya said a situation whereby contractors collected money and failed to do the work should not be allowed to occur “in this regime of change” in the way we previously do things in the country.

Gaya told the ministry to supply the committee with details of the contracts awarded in 2015 and their status at a later date.

Eleven (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. Mr. 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 doesn’t want to perform,” he said.

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

The Senate committee boss urged the minister to consider some of the roads in view of their link to major cities in the country; however, assuring that the committee would work on the budget proposal to ensure that funds were adequately allocated.

Responding, 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.”

Speaking on the 2016 budget proposal, Fashola said the sum of N10 billion was budgeted for work on the Abuja-Lokoja road.

He also said the sum of N16 billion was voted for Kano-Maiduguri road, while the rehabilitation of Apapa-Oshodi road would gulp N5 billion among others.

According to Fashola, in a bid to do achieve result, the ministry has come up with a plan to implement road projects based on needs.

“The purpose of the plan is to first address economic routes so that a section can at least be completed. For 16 years we have not finished the Lagos-Ibadan road, so we want to work in one place at a time.

“The second Niger Bridge is another project that is of priority because of its importance.