Contract revocation: Contractor pledges to return to site
Revocation
By Monday Ijeh
Abuja, Aug. 13, 2018 (NAN) The contractor handling section III of the Abuja-Lokoja road project, Bulletine Construction Company Limited has pledged to return to site soon, following the Federal Government’s threat to revoke the contract.
Mr David Anchaber, the Financial Controller of Bulettine, made the pledge in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.
NAN reports that the 49.36 kilometre section III of the project covers from Abaji to Koton-karfe of Abuja-Lokoja road.
The Federal Government had threatened to revoke the project on the ground that the contractor had been out of site against the stipulated period in the contract terms.
Mr Kajogbola Jimoh, the Federal Controller of Works in Kogi told NAN that the contractor had been duly mobilized, adding that the Federal Government was not indebted to the contractor.
He said the contractor had been issued various warning letters and had not demonstrated commitment to return to site in spite of threat to revoke the contract.
“We noticed the contractor’s presence on site when the threat of revocation was tense but he abandoned the site again after two weeks and as I talk to you, he is no longer on site.
“We have recommended that the project be revoked since the contractor is not ready to deliver after due mobilisation,” he said.
However, Anchaber expressed dismay that the 53kilometres road project awarded in 2006 with a completion period of 30 months had lingered for over 144 months and currently 53 per cent completion.
The Bulettine financial controller told NAN that the ministry was currently not indebted to the company but added that, poor funding at the inception of the project was responsible for the delay.
He said the company was doing its best to ensure that the project was not revoked, which according to him, would not be good for both the employer and the contractor.
“We don’t want to lose the job and I assure you that in a couple of weeks, we will go back to site fully.
“We are appealing to the ministry and the road users with all good intention that the project is not abandoned and that they should to be patient with us.
“We have applied for an extension time for the completion of the job and we are waiting for the ministry’s response.
“We are doing all we can to ensure that the funding aspect which is the major obstacle is handled appropriately,” he said.
He explained that the company borrowed money at the inception of the project to lease equipment, pay two digit interest and now, paying salaries and wages for 144 months against the 30 months expected.
He said the money was borrowed from AfriBank, Spring Bank and UBA in 2006 and 2007 to buy equipment for the project.
According to him, as a result of the poor budgetary allocation at the initial stage of the project, we ran into difficulties because we could not service the loans.
“With the establishment of the Assets Management Company (AMCON) in 2010, the non-performing loans were sold to it and we entered into an agreement on modalities for the repayment.
“The delay in the payment of certificates that were raised between 2008 and 2014 because of non-budgetary allocation and government bottlenecks contributed greatly to our problems.
“We have instances where the Federal Ministry of Works spent over 1040 days on a certificate without payment.
“Creditors were there, salaries have to be paid, material cost was also there and maintenance of equipment has to be done.
“Because of those non-performing loans with AMCON, no bank is ready to borrow us money,” he said.
Anchaber said the company had opened doors for investment basket for alternative funding options, adding that some firms were coming to partner with the company to complete the project.
He said the firms would assist the company in the funding of the project to avoid the revocation.
The financial controller said the company had replied the warning letters issued by the ministry and had asked for extension of time. (NAN)
IMC/GOM/AFA
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Edited by Gregory Mmaduakolam/Felix Ajide