Tuesday 16 February 2016

Obasanjo in $841.6m project scandal

The Project Manager of a Chinese civil engineering and construction company, Etim Abak, on Monday told the Senate Committee on the Federal Capital Territory that former President Olusegun Obasanjo awarded the Abuja Rail Project in 2007 without an engineering design or a Memorandum of Understanding.

The Minister of FCT and current governor of Kaduna State, Mallam Nasir el-Rufai, allegedly signed the $841.645,898m contract based on an uncalculated estimate.
The committee was also told that the contract, which was for 60.67-kilometre rail project, was inflated by $10m per km and that the length was later reduced to 45km without refund of the cost for the 15.67 km that was dropped off from the project.
The Senate committee, led by Dino Melaye, who were at the site of the project to carry out oversight functions, therefore, demanded the refund of $195,878,296.74 being the amount for the 15.67km that was cut out, from the Chinese firm handling the project.
Abak said, “The contract was awarded based on conceptual design and estimates were not properly done. There was no formal design submitted and rail bridges and crossover bridges were not captured in the contract.”
 -Punch

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