Huge protest greet cancelation of N147.6bn road contract in Katsina

…works minister reported to Tinubu

Some residents of communities along Katsina-Kankara-Dutsinma-Maraba Kankara road in Katsina State have appealed to President Bola Ahmed Tinubu to direct a reversal of the cancellation of a N147.6 billion contract for the full rehabilitation of the road.

They accused the Minister of works, David Umahi, of maliciously cancelling the contract which was awarded to an indigenous firm, Vipan Global Resources Limited, after fulfilling all the requisite requirements, has a completion period of 24 months.

Mallam Saidu Zaharadeen, a community leader in Yantumaki community one of the communities where the road passes through, said that the road project was awarded to the Firm on April 5, 2024 with contract number 8489 after a certificate of no objection was duly issued by the Bureau of Public Procurement as well as an approval by the Federal Executive Council (FEC).

Also, documents sighted by our correspondent include all the bidding documents, an award letter, Federal Executive Council (FEC) approval, acceptance letter, Engineer’s Order to begin work, and site handover letter, among others.

The Engineer’s Order signed by Engr O.U Bakare, instructed the Firm to commence work with effect from 15 April, 2024 with a directive that the work be completed on 14 April, 2026.

Also, in an official letter duly signed by one Engineer Tahir B.G, Federal Controller in Katsina State, the federal ministry of work handed over the road to the contractor on 24 April 2024.

A credible source confirmed that the Managing Director of the Company and officials of the federal ministry of works jointly signed an agreement for the road project on 10th May 2024.

Our source who is a staff of the works ministry said that the firm wrote a letter of request for advance payment guarantee to the ministry and mobilised to site and commenced work in line with the contractual terms.

It was while waiting for payment that Umahi’s ministry issued a letter on 16 July, 2024 asking the firm to stop the road project and vacate the site immediately.

In the letter signed by Engr Goni Mohammed, Director of Highways North West, on behalf of the federal ministry of works, the ministry stepped down the contract citing lack of funds, a claim many faulted because there is a N10.9billion budgetary provision for it in the 2024 budget.

Dissatisfied with the directive, residents of communities along the road alleged that the federal ministry of works’ action, taken at the instance of minister, was politically motivated even as they lampooned the minister for condoning acts that could saw a seed of discord between the federal government and residents of the area.

They wondered why Umahi cancelled a project in the north and did not cancel any from the south as if he is trying to pit the north against the president.

While accusing Umahi of witch-hunting, castigating, molesting and terrorizing opposition, they however appealed to President Tinubu, whom they described as a father to all, to direct Umahi to immediately reverse the cancellation of the road contract in the interest of justice and fair play.

But a source said Umahi claimed that the president directed him to cancel the contract after Katsina state governor, Umaru Dikko Radda and SA political to the president, Ibrahim Masari complained to the president that the man linked to the company has been giving the ruling APC tough time in Katsina state and so his company should not be allowed to do any business in the country.

“They even vowed to do everything possible to bring him down”, our source added.

According to the source, the firm has sunk huge sums of money into the project and was not prepared to incur losses.

When contacted, a senior staff of the works ministry confirmed that there are similar road projects awarded by the works ministry most of which have less budgetary provisions than the one in question.

These projects include the rehabilitation and dualization of Enugu-Abakaliki-Ogoja road awarded to Reinforced Global Resources Limited for N183.6bn with a budgetary provision of N2.5bn in the 2023 supplementary budget with 24-month completion period.

There is also the rehabilitation of Ugep-Abaomoge-Opkosi road in Cross River state awarded to Reinforced Global Resource Limited for N54.6bn with a budgetary provision of N2.5bn in the 2023 supplementary budget with 24-month completion period.

Another one is the contract for the construction of a 23-span flyover bridge project at Ele-Obinagu Junction, along Enugu-Abakaliki Road awarded to Reinforced Global Resources Limited for N19.4bn with a budgetary provision of N2.5bn and a 24-month completion period.

There is also the contract for the reconstruction of Bida-Lemu-Wushishi-Zungeru Road in Niger state awarded to Gerawa Global Engineering for N66.9bn for which there is a budgetary provision of N2bn in the 2023 supplementary budget and a 24-month completion period; construction of Otukpo-Nasarawa road in Benue state awarded to Wizchino Engineering Limited for N198.8bn in the 2023 supplementary budget with a 36-month completion period.

Ohers are contract for the rehabilitation of Abeokuta-Ibaro/Ilaro road in Ogun state awarded to Strabic Construction Company at N57bn with about N71.7m budgetary provision; and, rehabilitation of Ore-Ondo-Akure Road in Ondo state awarded to Civil &Building Construction (CBC) Global for N134.8bn with provision for N4.7bn made in the budget.

Another official of the works ministry even alleged that Minister Umahi has interest in Reinforced Global Resource Limited and most of the companies’ awarded contracts by the ministry.

Meanwhile, it was gathered that Umahi advised the Federal Executive Council to cancel the contract citing provisions of section 28(b) of the Public Procurement Act which he claimed confers the procuring entity ‘the authority to halt any procurement process at any stage without incurring liability’.

However, a deeper reading of the said section showed that the minister merely misled FEC as the provision he quoted applies only at the bidding stage not when the contract was awarded.

For instance, section 28 (a) of the BPP Act provides that a procuring entity may reject all bids at any time prior to the acceptance of a bid without incurring any liability to the bidder.

Also, section 43.1 of the Act provides that the procuring entity can reject all bids at any time “prior to acceptance of a bid without incurring any liability to the bidder”. The law also provides that “the rejection of all bidders requires prior approval of BPP.

Therefore, it is clear that the section cited by Umahi is not applicable to the road contract in question since the project is at the execution stage.