Fashola releases names of contractors who failed to complete projects after receiving payments

Fashola



The Minister of Power, Works and Housing, Mr Babatunde Fashola, has released the names of contractors who failed to execute power projects after receiving payment.
In February 2019, SERAP asked court to compel Babatunde Raji Fashola to release names of corrupt contractors.

In a statement on Sunday, May 5, 2019, Kolawole Oluwadare the deputy director of Socio-Economic Rights and Accountability Project (SERAP) said Fashola forwarded the names of the contractors to the organization.

According to Oluwadare, SERAP has been invited to inspect a compendium of verified and paid/outstanding liabilities of contractors, kept at the offices of the Nigeria Electricity Liability Management Limited/GTE.


He said a letter from the ministry with reference number FMP/LU/R2K/2016/T/40 signed by the ministry’s permanent secretary, Louis Edozien on behalf of Fashola showed how Pow Technologies Limited, an Abuja-based company, was awarded a contract in 2014 to the tune of N87,763,302.40 for the supply and installation of test and maintenance equipment relays to various NAPTIN regional training centers (RTCs) (LOT15).

A total of N79,404,892.66 was said to have been paid to Pow Technologies Limited, but only 13 of the 19 items have so far been supplied.

According to Oluwadare, the ministry noted that while the contractors resolved to take remedial action, they still failed to complete the project for which funds have been released.

In its bid to take action against the contractors, the ministry said that it submitted a petition to the commissioner of police, Abuja on January 13, 2016, and that the police instituted a case for the prosecution of Messrs Pow at the upper area court.

The ministry also said it has sought and received legal advice to pursue a civil action at the FCT high court and has also made a report of criminal breach of contract to the Economic and Financial Crimes Commission (EFCC).

The ministry’s letter reads “I write with respect to the Ministry’s letter regarding details of alleged corrupt contractors and to forward the attached responses from some of the Ministry’s Agencies namely: National Bulk Electricity Trading Plc; National Power Training Institute of Nigeria and Nigeria Electricity Liability Management Limited/GTE for your information,”

However, responding to the letter, SERAP said it needed more names of contractors who failed to deliver power projects after they have been paid.

The organisation’s reply to the ministry’s letter reads in part: “We welcome Mr Fashola’s latest response and the information regarding Pow Technologies Limited. But we need details of names of other contractors that have collected public funds yet failed to execute power projects,” SERAP said.

“We will continue to push the Ministry and its agencies to reveal more details of alleged corrupt contractors and companies, as contained in our FOI request. We will continue to pursue our FOI suit at the Federal High Court, Lagos, before Justice Chuka Austine Obiozor, a Professor of Law, who has granted an order for leave in the case.”

You’ ll recall that in February, SERAP asked the court to compel Fashola to disclose names and details of contractors and companies that allegedly collected money for electricity projects but failed to execute any projects.

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