The Oyo State House of Assembly has launched a probe into the delay in the completion of a 10,000mt Silo worth N1.29 billion located in Awe, Oyo State.
The Assembly, at the Plenary on Tuesday, directed its Committee on Agriculture and Rural Development to commence the probe on the contract, which was awarded to Messrs Rahvet Int’l Ltd in 2014.
The Speaker, Rt. Hon. Adebo Ogundoyin, gave the directive when the house was receiving the report of the Committee.
The contract, valued at N1,294,076,000, was initially scheduled for completion within 10 months.
However, despite the contractor receiving N1,277,126,745, the project remains incomplete.
According to the contractor, the delay was caused by a breach of agreement by their banker, who failed to remit necessary funds to a Chinese company responsible for manufacturing the silo components.
The contractor also claimed that the issue is currently being litigated in court.
In an effort to rescue the project, Governor Seyi Makinde opted for an out-of-court settlement and approved a contract variation of N350,000,000 in November 2019.
The completion deadline was extended to 22 May 2021.
Despite this, the contractor reported that the necessary components had not arrived, and work had not commenced as of the committee’s visit.
The Speaker said the House Committee on Agriculture will probe the matter, seeking to understand the causes of the delay and the alleged breach of contract.
He said the investigation is aimed at ensuring that the project is completed efficiently and effectively, serving the best interests of the people of Oyo State.
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