FG Severs Obajana-Benin Road Contracts with Three Companies

Three companies had their contracts with the federal government for the Obajana-Benin Road revoked due to non-performance.

The government terminated contracts with Mothercat Ltd. (6136), Dantata & Sawoe Construction Ltd. (6137), and RCC Ltd. (6138), in that order.

This termination affects the following projects: the dualization of the Obajana-Benin road, section II (Okene-Auchi) in Kogi/Edo State; the dualization of the Obajana-Benin road, section III (Auchi-Ehor) in Edo State; and the dualization of the Obajana-Benin road, section IV (Ehor-Benin) in Edo State, according to a statement released on Monday by the Federal Ministry of Works.

Considering the excessive delay of the impacted enterprises in task performance, “the termination of the said contracts became necessary,” according to Minister of Works Dave Umahi.

The contractors’ “failure, neglect, or refusal to fulfil their contractual obligations as required by the Standard Conditions of Contract, and this has affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.” The minister’s spokesperson, Uchenna Orji, signed the statement.

Despite being granted on December 3, 2012, the minister noted that the contractors had blatantly abandoned the projects and had showed no real dedication or good faith in carrying them out, leaving road users to endure unimaginable agony as a result of the projects’ terrible state.

“The engineers in charge to take the necessary steps to enter upon both the site and the works and take the same over from the affected companies.” Umahi commanded as a result.

He told the relevant engineers to do what was necessary, and then they should coordinate with the affected companies to measure the work they’ve done so far before they take over the locations.

He made it clear that the ministry he is leading will not stand for contractors’ lack of seriousness and sabotage if they try to impede the present administration’s agenda.

Additionally, he cautioned that the government will not hesitate to cancel any sponsored project that fails to meet expectations.