2 contractors to refund over N2bn in Bauchi

TWO contracting firms that allegedly abandoned road contracts awarded to them by the immediate past administration in Bauchi State are to refund the sum of N2, 821, 658, 328 .20 paid to them in form of overpayment for the said contracts.

This was revealed by the Asset and Recovery Committee set up by the current Governor Bala Mohammed, which gave the names of the firms as; QUMECS Nigeria Limited and KANNOU Project Nigeria Limited that were said to have abandoned the sites of projects within Bauchi metropolis and Jama’are Local Government Area of the state.

Spokesperson of the committee, Umar Barau Ningi, who briefed newsmen accused the former government of financial recklessness through what it termed alleged illegal upward review of original contract rates.

Ningi further said that one of the two roads in the Bauchi metropolis was awarded to QUMECS Nig Ltdat an initial cost of N1, 957, 519, 297 .53 and was later reviewed upward twice N1, 103, 734, 742 .13 and N1, 237, 202, 468 .13.

He explained that, “The sum of N133, 467, 726 was found to have been added to the contract sum as ‘loss of profit’ to compensate for the omission of asphalt work. This, the committee believes is too much a compensation”.

He alleged further that the volume of work done till date was 21.6 per cent, adding that the contract had been abandoned while the contractor had also left the site, hence the committee established an overpayment of N537, 117, 385 .86.

According to him, the contract for the second metropolitan road was awarded to KANNOU Project Nig. Ltd at original cost of N298, 596, 929 in November 2015,  and was later reviewed upward to N463, 817, 177.75 while the amount paid to the contractor was N412, 771, 115 and the value of work done was worth N298, 715, 521 .21.

“The illegal review of the original contract rate led to the overpayment of N414, 055, 593 .79. There is an established collusion between some government officials and the contractor which resulted in the overpayment. The officials will be treated appropriately while recovery of overpayment is being handled,” Ningi alleged.

According to the committee spokesman, contract for the design and construction of Itas – Atafowa –Magarya road in Jama’are LGA of the state was also awarded to Messers KANNOU Nig. Ltd at the original cost of N1, 455, 001, 214 .90 on November 7, 2016.

“This contract was later reviewed upward to N2, 979, 340, 218 .25. A total of N553, 978, 770 has been paid to the contractor while the value of work done is only N151, 122, 021. With the amount paid, only five per cent work is achieved. This contract is recommended to be determined and the amount of N402, 856, 749 .64 being overpayment to the contractor be recovered”, Ningi concluded.

When Sunday Tribune visited the site of one of the firms on Bauchi-Jos road, the place was under lock and key with only security men on guard and when Sunday Tribune attempted to speak to them they refused saying that they cannot make any comment.