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Road Projects: Contractor Groans Over Abia Govt’s Refusal To Pay N2.715Bn Debt

...Vows To Seek Justice In Court

The Daily Crucible by The Daily Crucible
December 7, 2024
in Business, News
0
Road Projects: Contractor Groans Over Abia Govt’s Refusal To Pay N2.715Bn Debt

 

By Godwin Akomah, Umuahia

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The Chairman and Chief Executive Officer (CEO) of Worldwide Environmental Technologies Limited, Sir Ako Obioma, has lamented the non – payment of N2.715Bn allegedly owed his firm for the road contract projects executed for the Abia State Government.

 

Sir Obioma particularly lamented that the Umuopara Ring Road and the recently commissioned IBB dual carriageway (Nicknamed Dozie way) by the Abia State Governor, Dr. Alex Otti, allegedly had the contract sum for the project inflated by the state government.

 

Addressing newsmen recently in Umuahia, the Abia State capital, Obioma expressed disappointment that
“Dr. Alex Otti could spend N750 million for only asphalt overlay of a 1.3 km road,” but was unable or unwilling to pay his construction firm for the road work done for the state government.

 

He added that instead of settling the debt owed his company, the governor claimed that the ministry of works spent N750m through direct labour for mere asphalt overlay on 1.3 kilometer stretch out of the 4.4km contract already completed by his company, Worldwide Environmental Technologies Limited.

 

He described the Otti’s action as a flagrant disobedience to court judgments mandating payment for the work done by the company.

 

He indicated that his company had completed the 4.4 km road 100%, save the asphalt binder course, which the ministry claimed to have overlayed only 1.3km at a staggering sum of N750m.

 

While voicing his concerns over the injustice he grapples with from the state government, he vowed to continue to seek legal redress to claim the justice he deserved.

 

Narrating his company’s ordeal in the hands of successive Abia State government, especially with the Labour Party (LP) – led administration in the state with Alex Otti as the Governor, Obioma said: “In 2007, at the swearing-in of Senator T A Orji, he urged me to relocate my construction equipment and plant yard to Umuahia to assist him in developing the state.

 

“Having known him from old Imo State, I have huge respect and trust in him so I obliged his request. During his tenure, my companies completed many roads and other infrastructure with some ongoing road projects.

 

“However, my companies were never at any time paid mobilization before commencing any project and this led to huge debt by the government to my companies.

Due to the inability of successive governments to pay this debt, in 2016, we took the Abia State government to the high court, however, Abia State in turn referred it to the Arbitration Panel.

 

“The arbitration award was released on October 2022 and Abia State government was mandated to pay my companies a total of N2,715,978,167.04 and this was subsequently entered as Judgement of the court by Abia State High Court in May 2024.

 

“It’s pertinent to inform you that Umuopara Ring Road and IBB dual carriageway (Nicknamed Dozie way) which are the focus of this invitation are among the projects in the arbitration.

 

“Umuopara Ring Road was struck out at arbitration because it is ongoing and the government has not shown any unwillingness to pay nor discontinue the project and no certificate has been raised.

 

“However, the Abia state government was mandated to pay us the certified amount of N581m for IBB (Dozie) Way and to raise our completion certificate for the balance of the N930,604,050.00 contract sum.

“In 2019, the government of Dr Okezie Ikpeazu kept to her words at the arbitration panel by reviewing the contracts and flagging off Umuopara Ring Road officially. We returned back to the site and as of 2022, we had completed over fifty (50%) percent of this road project.

 

“However, due to the inability of the government to pay our second interim certificate of N279,312,648.30, we suspended the work.

 

“During the 2023 elections, there was agreement and understanding in which Dr Alex Otti made promises among which were, to offset Abia State Government debts to my companies and continuation of our ongoing projects which includes this Umuopara ring road.

 

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“Six months into his governance, all I kept getting from my elder brother who was his Campaign Director General, was that the Governor was requesting we give him some time to stabilize. One year after, it’s the same story of “there’s money we are expecting very soon”.

 

“Surprisingly, in September 2024, I read an advert from Abia State Ministry of Works requesting interested contractors to tender for the construction of the 6.9km Umuopara ring road. I couldn’t get the commissioner for Works on the phone, so I called the permanent secretary Engr Izuchukwu, who confirmed it and even urged me to tender for it.

 

“My lawyer wrote to the Commissioner for Works copying the Governor and urging them to understand the legal implications of what they are doing and to expunge the Umuopara ring road in their tender advertisement.

 

“Next was the Governor’s Press briefing this November where he announced that he has awarded Umuopara Ring Road and subsequent announcement that he is going to flag it off on 3rd December.

 

“On the Umuokpara Ring Road, Dr Otti’s intention to flag it off from Umunwanwa is deceptive, Umunwanwa is the last village where the Umuopara ring road ends. Contract for the ring road was awarded to Worldwide Environmental Technologies Limited which covers five villages, Umuekwule, Umuajameze, Ehume, Ogbodinibe, and Umunwanwa with spur at Amachara.

“Worldwide started the project from Umuekwule and have covered Umuojameze and Ehume remaining only Ogbodinibe to Umunwanwa, which is slightly less than 3km.
Dr Alex Otti’s intention to flag it off from Umunwanwa which is the last village is only to decieve the general masses. Why didn’t he start it from Ehume, where Worldwide stopped work.

“Another shocker was the Governor’s commissioning of the same IBB way nicknamed Dozie way which was a virgin road with 2.2 metre Hill that was awarded to us in 2013 and was completed in 2016 along other adjoining roads to Ahiaeke, Umuana, Lodu, and new timber market at the contract sum of N930,604,050 which we are yet to be paid a kobo against the arbitration and court judgment.

“We understand that the government recently overlayed asphalt on the IBB (dozie) way for a whopping N750m.

“It’s disheartening that Dr. Alex Otti could spend N750m for asphalt overlay of 1.3km of the 4.4km road, yet went to court and filed a stay of execution for pantry N581m the arbitration and court-mandated the state government to pay us as part of the N930m, for the 4.4km road we constructed without mobilization.

“In order to avoid political hullabaloo on this project, I found it necessary to invite you to visit these road projects with me for on the spot assessment and for you to see if the remaining Umuopara road project is 6.9km as alleged by Abia state government and to find out from the government their reason for re-awarding the road project.

‘It’s also noteworthy to inform you that it’s not only this Umuopara ring road and IBB (Dozie) way that I have faced similar fate, there are so many other such roads in the state which the government claimed to have rehabilitated through direct labour and paid themselves. However, we shall continue to dialogue with the government in our demand for professional and constitutional procedure in their decisions and actions but where all fails, we shall take appropriate steps for justice to prevail.

 

“Recently, the Minister of the dissolved Ministry of Niger Delta paid him a visit, I heard Dr Alex Otti in his almost weeping speech complaining of non-payment of a certified certificate for an ongoing road project NDDC is doing across his village home which he attracted and being handled by his friend’s company that was abandoned since 2018.

“How does he compare this to the Army Barracks, Ohafia, The Helipad at Isikwuato, Amaoba road, Ikwuano, etc. constructed by my companies and commissioned by former President Goodluck Jonathan since 2011 without any payment by Abia State Government and now Umuopara ring road and IBB (Dozie) way with debt running in billions of Naira since 2011, yet he found it reluctant to honor arbitration and court judgment to pay us and as well reneging on his own promises.”

•A section of the commissioned Dozie Way (Picture credit: Abia Govt House Press)

 

However, Governor Alex Otti had while inaugurating the  Dozie Way late November this year, said that the project demonstrated his dedication to enhancing economic activities and decongestion of traffic in the State Capital.

Otti disclosed that N750 Million was used to execute the road project through direct labor by the Abia State Ministry of Works, explaining that the direct labour approach saved the State Government significant cost compared to the N2.2 billion quoted by external contractors for the road.

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