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Contractors abandon FCT projects over N112bn debt

By BusinessNews Staff on July 28, 2015

Contractors handling projects in the Federal Capital Territory (FCT) have withdrawn their services following the inability of the FCT administration to settle the nearly N112 billion debt owed them, THISDAY investigations have revealed.

It was gathered that most of the contracts were awarded between 2006 and 2013. One of them, ‘Completion of Roads B1, B12, and Circle Road, Abuja Central Area,’ was awarded on May 14, 2003, during the first term of former President Olusegun Obasanjo.

However, a report of the FCTA obtained by THISDAY showed that as at July 20, 2015, the administration had still not paid the contractor Julius, Berger. Plc N1,405,454,551.42.

The pull-out by the firms, it was gathered, had resulted in the companies resorting to sacking their workers by thousands, and, in several instances, placing the remainder on half salary.

An official of the FCT Administration (FCTA) told THISDAY that President Muhammadu Buhari has been briefed of the situation, and that efforts were being made to pay the contractors.

A document detailing FCTA’s “outstanding liabilities” indicated that the indebtedness was for 191 contracts valued at N111,681,186,045.56.

Of the figure, the indebtedness to SCC Nigeria Limited stood at over N27 billion, representing about a quarter of FCTA’s total indebtedness.
The report revealed that the administration was still owing SCC Ltc. N9,370,444,521.07 and N8,882,288,750.76 for the provision of engineering infrastructure for Karshi and Kubwa towns respectively. Both contracts were awarded in May 2007.

Further checks revealed that the company was owed N6, 041,651,417.84 for the dualisation of Usuma Dam-Gurara road awarded in October 2013, and another N3,164,504,609 for the provision of primary water scheme for Karshi satellite town awarded on June 10, 2013,

THISDAY checks revealed that Gilmor Engineering Nigeria Plc was owed N6,904,474,806 for the provision of engineering infrastructure for Guzape district.
Kakatar Ce Limited was owed N9,133,123,898.50 and N1,462, 054,003,50 for the provision of engineering infrastructure for Kyami and Maitama Extension districts.

The report revealed that aside SCC, Gilmor, and Kakatar Ce, other companies owed in excess of N6 billion include CGC Nigeria Limited Julius Berger Plc, Salini Nigeria Limited and Arab Contractors Nigeria Limited.

According to the FCTA report, the least owed is Adbaaf Nigeria Limited which was given a N2,897,271.12 contract on December 6, 2013, to build perimeter fence and some toilets in Bwari council.

An FCTA official told THISDAY that most of the contractors were on account of the contracts indebted to banks, and were certain to incur huge losses after repaying the loans.

[ThisDay]

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