From Tony Osauzo, Benin
It was revealed Thursday that the administration of Governor Godwin Obaseki, which hurriedly commissioned uncompleted projects in its twilight, has left the new administration of Governor Monday Okpebholo with a huge debt burden amounting to about N200 billion, being outstanding commitments to contractors who were only given mobilisation fees.
The chairman of the Assets Verification Committee constituted to investigate some activities of the previous administration, Dr Ernest Afolabi-Umakhihe, disclosed this during a press conference in Benin City.
He said the Okpebholo administration cannot deny Edo people the opportunity of good road networks, especially during this dry season, hence the need for the government to quickly act in good time to complete some of the ongoing road projects.
“There are huge outstanding commitments in respect of road infrastructure. No matter how indecent some of our findings are, the government has to explore the dry season to make an appreciable intervention in road construction.
“Most of the ongoing projects were awarded during the year 2024 and that leaves the new government with a huge burden amounting to about N200 billion being outstanding commitments to contractors who were only given mobilisation, which in some cases were paid back to government officials as disclosed by some contractors,” Umakhihe disclosed.
Besides, he said there was also non-adherence to the Edo State Public Procurement Law in the award of major contracts, which led to several dubious variations of contract sums, adding that, in some cases, the variations were higher than the initial contract sum.
“The transaction on the Radisson Hotel project leaves so much to be desired. Whilst the project was initiated by the State Government by sourcing over N17.5b from the stock market and an initial payment of N2 billion for acquisition of land, it is noted that just before the exit of the immediate past administration, the ownership had changed, leaving Edo State, the core investor, with 20% ownership.
“The Museum of West Africa Arts (MOWAA) is captured as an independent private trust sitting on government land. The Ministry of Arts, Culture, and Tourism has minimal supervision on the project. Till date, Edo State has no equity stake in MOWAA even though the State had spent N3.8b as contribution.
“EDSG committing to paying over N5b for cybersecurity software licences for the EdoGov platform for just three years starting from 2023 to 2025. Out of this sum, N1.7b has already been paid by the immediate past government. These are just some of the snippets of what we have unravelled.
“By 6th January, 2025, when we return, we will be looking at other critical sectors of the State; the housing sector, education (SUBEB and EDOBEST), Ministry of Environment, College of Health Sciences and Technology, College of Nursing Sciences, Ministry of Health, all agricultural projects including grants from donor agencies, Edo Oil Palm Project, EDSOGPADEC, MOWAA, Edo Electrification Agency, sale of shares in BUA Cement, the Modular Refinery, among others,” the Assets Verification Committee Chairman stated.