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Julius Berger tenders apology for failure to honour prior invitations
From Adesuwa Tsan, Abuja
The Senate Committee on Works has warned that it will no longer tolerate the cancellation of federal road contracts without its notice.
Chairman of the Committee Senator Mpigi Barinada (PDP, Rivers Southeast) made this known on Tuesday during a meeting with the Managing Director of Julius Berger Nigeria PLC, Dr. Peer Lubasch, and his team regarding the termination of the Odukpani-Itu-Ikot Ekpene highway contract and other contracts by the Ministry of Works.
He explained that the National Assembly allocates funds to such projects on behalf of their constituents and, as such, must also be consulted before a decision to terminate them is made.
The lawmaker said, “On the termination, the National Assembly that provides, that gives all the budget for these projects, we’ve not been contacted but we have been told that most of these jobs have been terminated. This Senate will not fold our hands. It is like a double-edged sword: we provide the budget, and if anybody is terminating the job, we also need to be contacted accordingly because our people cannot be suffering just like that.”
Similarly, he cautioned construction companies working in Nigeria against failure to deliver on the terms of their agreements with the government on the implementation of their contracts.
Mpigi warned, “Let me use this opportunity to warn all other companies doing business in Nigeria, especially in the construction industry, that this is just a warning sign because we are aware of lots of projects that have been awarded in this country since 2015. Some contractors have collected money and not turned up on site.
“This committee will take action. We will go from north to south, from east to west, and we must make sure that we recover all taxpayers’ money, irrespective of how they defend themselves. The National Assembly is endowed with constitutional powers, and we will not hesitate to deploy them against those who disregard its authority. No institution or entity is above the law.”
At the meeting, Dr. Lubasch read a letter of apology to the committee for shunning its earlier invitations, saying it was not done with ill-intentions but due to miscommunication. The letter had earlier been read in plenary by Senate President Godswill Akpabio.
He was accompanied by JBN’s Director of Administration, Dr. Abdulaziz Isa Kaita; Executive Projects Coordinator, Mr. Kal Uwe Kohter; Executive Projects Director (Civil), Engr. Benjamin Lott; Head of Contract Management, Mrs. Omo Brown; and Head of the Legal Department, Mrs. Adenike Obisan.
He said, “On behalf of Julius Berger, I tender my sincere apologies for our absence at the earlier scheduled meetings. As stated in my letter to the Senate President, Distinguished Senator (Dr) Godswill Akpabio, GCON, and transmitted through the Chairman of this Committee, Senator Barinada Mpigi, the absence was not ill-intentioned or a sign of disregard, but rather the unfortunate outcome of miscommunication during my leadership transition.
“At Julius Berger, we understand ourselves as partners in Nigeria’s progress, and we are deeply committed to supporting this administration’s aspirations for the benefit of each and every citizen.”
Explaining what led to the cancellation of their contracts, he told the lawmakers, “I understand the frustrations that delays and challenges in project delivery may bring.
“We always adhere to contracts and strive to meet agreed project schedules. The trust that our clients, communities, staff, and shareholders have placed in us over the years is of utmost value to us.
“I assure you, Julius Berger is as invested in Nigeria’s development as the committee we stand before, and we continue to put in place every measure to achieve progress. Yet at times, our progress is hindered by challenges outside our control—especially for overaged projects.
“And even more so in recent years due to market realities and pressures from the macro-economic environment. Inflation, Naira devaluation, higher interest rates, and general price increases have introduced extra challenges, resulting in the need to address augmentations to the contract rates to ensure the viability of projects… again, especially for those that are overaged.
“This is also the case for the project we have been invited here to discuss, the Odukpani-Itu-Ikot Ekpene Road, where the unit rates were negotiated in 2016, but due to underfunding and serious delays in payment, the project timelines have overstretched.
“On this project specifically, for example, since 2016 to date, the cost of bitumen has increased by 800%, diesel by 700%, cement by 350%, and reinforcement by 600%.
“I don’t want to go into further details here, as we are sure to discuss the project during the session. Respectfully, I close with a request to the Senate to safeguard the industry as a whole… as the issues we are here to discuss are not unique to the Odukpani-Itu-Ikot Ekpene Road or to Julius Berger. Specifically, to protect due process and adherence to contractual cooperation.
“Proactive Senate intervention may resolve the challenges and send a strong signal to investors and stakeholders. We look forward to working closely with this Committee, the Federal Ministry of Works, and other stakeholders to resolve outstanding issues and deliver progress.”
Responding, Sen. Mpigi disclosed that the committee would embark on oversight visits to all their projects for on-the-spot assessments.