Senate faults payment of N4bn to road contractors
Thu Feb 11, 2016 10:16:am National
2.8K By sosa hills
The Senate Committee on Works yesterday said 11 road contractors collected N4 billion last year from the federal ministry of Works and did not mobilize to sites.
The committee insisted the contractors didn't deserve to be paid because they did not work on the roads last year.
The Chairman of the Committee, Senator Kabiru Gaya disclosed this when the Minister of Power, Works and Housing, Babatunde Fashola appeared before the house committee for the defence of his ministries 2016 budget.
According to him, some contractors collected N500 million while one of the contractors collected N1 billion. He gave an instance of the dualisation of Otukpo township road, in Benue State where the contractor was paid N1 billion.
Gaya demanded the minister to check the details of such contracts and report back in the next meeting noting that there is no point giving a contractor mobilization fee when he cannot perform.
Responding, the minister Mr. Babatunde Fashola, promised to check and get back to the committee.
Also the House of Representatives committee on aviation yesterday queried the Nigeria Meteorological Agency (NIMET) over a double allocation of N180 million for a single project.
The committee observed during a budget defence session with NIMET yesterday in Abuja that the agency proposed N85 million under the main budget and another N95 million from its Internally Generated Revenue (IGR) both for capital expenditure with similar sub-head in the proposed budget.
The committee chaired by Rep Nkeiruka Onyejeocha (PDP, Abia) also frowned at a practice by the agency where it would generate funds through US Dollars and remit to the Federation Account via naira.
Ministry of interior and Accident Investigation Bureau (AIB) also defended their budget yesterday at the National Assembly.
The committee insisted the contractors didn't deserve to be paid because they did not work on the roads last year.
The Chairman of the Committee, Senator Kabiru Gaya disclosed this when the Minister of Power, Works and Housing, Babatunde Fashola appeared before the house committee for the defence of his ministries 2016 budget.
According to him, some contractors collected N500 million while one of the contractors collected N1 billion. He gave an instance of the dualisation of Otukpo township road, in Benue State where the contractor was paid N1 billion.
Gaya demanded the minister to check the details of such contracts and report back in the next meeting noting that there is no point giving a contractor mobilization fee when he cannot perform.
Responding, the minister Mr. Babatunde Fashola, promised to check and get back to the committee.
Also the House of Representatives committee on aviation yesterday queried the Nigeria Meteorological Agency (NIMET) over a double allocation of N180 million for a single project.
The committee observed during a budget defence session with NIMET yesterday in Abuja that the agency proposed N85 million under the main budget and another N95 million from its Internally Generated Revenue (IGR) both for capital expenditure with similar sub-head in the proposed budget.
The committee chaired by Rep Nkeiruka Onyejeocha (PDP, Abia) also frowned at a practice by the agency where it would generate funds through US Dollars and remit to the Federation Account via naira.
Ministry of interior and Accident Investigation Bureau (AIB) also defended their budget yesterday at the National Assembly.
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