Fashola names alleged corrupt contractors – TheNigerialawyer

The Minister of Power, Works and Housing, Mr Babatunde Fashola
SAN has forwarded to Socio-Economic Rights and Accountability
Project (SERAP) documents from some of the Ministry’s agencies
providing some level of details regarding the names of contractors
that allegedly collected money for electricity projects but failed
to execute any projects, and inviting SERAP to “inspect a
compendium of verified and paid/outstanding liabilities of
contractors, kept at the offices of the Nigeria Electricity
Liability Management Limited/GTE.”

This development was disclosed today in a statement by SERAP
deputy director Kolawole Oluwadare.

The Ministry’s letter with reference number FMP/LU/R2K/2016/T/40
and signed on Mr Fashola’s behalf by the Permanent Secretary
(Power) Louis O.N. Edozien, was sent to SERAP last week. The letter
reveals that: “Pow Technologies Limited, an Abuja based company,
was in 2014 awarded a contract for the supply and installation of
test and maintenance equipment relays, etc to various NAPTIN
regional training centers (RTCs) (LOT15), with the total contract
sum of N87,763,302.40, out of which N79,404,892.66 was paid to Pow
Technologies Limited.”

According to the Ministry’s letter, although the contract was
awarded in 2014, only 13 of the 19 items have so far been supplied,
with 6 items outstanding. The details of the 6 items that Pow
Technologies Limited has allegedly failed to supply are not
provided by the Ministry but the letter indicates some of the
action the Ministry said it has taken to ensure: “completion of the
project, address criminal breach of contract and take remedial
action.”

The Ministry said that while the contractors undertook to take
remedial action, they have failed to complete the project for which
funds have been released. The Ministry pointed out that it
submitted a petition to the Commissioner of Police, Abuja on 13th
January 2016, and that the police instituted a case for the
prosecution of Messrs Pow at the Upper Area Court.

The Ministry also said it has sought and received legal advice
to pursue a civil action at the FCT High Court while a report of
criminal breach of contract has been made to the Economic and
Financial Crimes Commission (EFCC).

SERAP said: “We welcome Mr Fashola’s latest response and the
information regarding Pow Technologies Limited. But we need details
of names of other contractors that have collected public funds yet
failed to execute power projects. We will continue to push the
Ministry and its agencies to reveal more details of alleged corrupt
contractors and companies, as contained in our FOI request. We will
continue to pursue our FOI suit at the Federal High Court, Lagos,
before Justice Chuka Austine Obiozor, a Professor of Law, who has
granted an order for leave in the case.”

Mr Fashola’s latest letter to SERAP reads in part: “I write with
respect to the Ministry’s letter regarding details of alleged
corrupt contractors and to forward the attached responses from some
of the Ministry’s Agencies namely: National Bulk Electricity
Trading Plc; National Power Training Institute of Nigeria and
Nigeria Electricity Liability Management Limited/GTE for your
information.”

It would be recalled that Mr Fashola had earlier said in
response to SERAP’s FOI request that: “the Ministry has searched
for the requested information on details of alleged contractors and
companies that collected money for electricity projects and failed
to executive any projects, but we could not find it from our
records.”

However, SERAP disagreed with the response, saying: “The public
expectation is that government information, when in the hands of
any public institutions and agencies, should be available to the
public, as prescribed by the FOI Act. The FOI Act should always be
used as an authority for disclosing information rather than
withholding it.”

Mr Fashola in a follow-up letter dated 4th March, 2019, to
SERAP’s reaction promised to: “refer the request for details of
alleged contractors and companies that collected money for
electricity projects and failed to executive any projects to the
Ministry’s agencies for necessary action and appropriate response.
There may be instances of part-payment against certification of
commensurate value for materials and services in achieved contract
milestone even though the entire contract is not 100%
performed.”

Mr Fashola’s initial response followed SERAP’s FOI request and
suit number FHC/L/CS/105/19 filed in February at the Federal High
Court, Lagos. The suit is seeking “an order of mandamus directing
and/or compelling Mr Fashola to provide specific details on the
names and whereabouts of the contractors who collected public funds
meant for electricity projects but disappeared with the money
without executing any projects.”

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