SAN FRANCISCO, September 17, (THEWILL) – The bubble finally blew in the public glare on Tuesday as a can of worms was opened at the commencement, on Tuesday, of the trial of former Minister of Works, Dr. Hassan Muhammed Lawal, and nine others over alleged irregularities committed in the N24.36 billion contract for the construction of a bridge across the Benue River from Buto in Nasarawa State to Bagana in Kogi State.
A Federal High Court in Abuja was told how the Federal Ministry of Works allegedly paid out billions of naira to contractors without due diligence and in breach of the terms of their contract agreements.
The presiding judge, Justice Adamu Bello, was also told how the ministry, under Lawal, allegedly acted contrary to the provisions of a contract agreement to accommodate an “incompetent” concessioner.
Deputy Director, Highways, Federal Ministry of Works (FMW), Dominic Tarzaa Abishigh, who opened the can of worms at the court, testified as the second prosecution witness in the case.
The ex-Minister, Lawal, who is being charged along with Dr. Adeogba Godwin Ademola; his company, Digital Toll Company Limited; Dave Enejoh, Okala Philip Yakubu, Thahal Paul, Swede Control Intertek Ltd, Promon Vital Ventures Ltd, Wise Health Services Ltd and Abbey Building Society, is accused of allegedly authorising the payment of about N3billion in breach of the contract agreement.
Abishigh, who was led in evidence by prosecution lawyer, Wahab Shittu, informed the court that by the agreement of the concession contract awarded to Digital Toll, the concessioner was expected to contribute 60 per cent of the contract amount; the Federal Government 20 per cent with Nasarawa and Kogi States contributing 10 per cent each.
The witness, who said he had been a Deputy Director in the Ministry since 2005 told the court that while the Federal Government, Nasarawa and Kogi States made substantial contributions of about N6.4billion by May this year, the concessioner made “zero contribution.”
The court was told that the private partner to the contract – Digital Toll – failed to make payment into the Joint Account dedicated to the project as required under the contract agreement.
The witness said in view of the alleged failure of the concessioner to meet its side of the agreement, parties agreed on a compromise to pay contractors and consultants engaged for the projects from the funds contributed by the public partners.
He said the compromise agreement, reached at a July 6, 2010 meeting presided over by Lawal, was in breach of the contract as the decision varied the provisions of the contract, without the contract being amended.
“In spite of this (the failure of the concessioner to make payment), money was disbursed from the joint account based on the compromise reached at the meeting of July 6, 2010 involving all parties to the contract.
“It was because the concessioner’s incompetence to reach financial closure that the compromise decision was taken, with a caveat that they (the concessioner) should reach financial closure within a given time.
“From the progress report made by the Public Private Partnership (PPP) Unit of the FMW, up till now, I am not aware of any payment made by the private partner into the Joint Account,” he said.
When cross examined, the witness said the public partners (Federal Government, Nasarawa and Kogi States) were wrong in acting outside the contract agreement when they decided to pay the concessioner, consultants and contractors even before the concessioner could make its contribution.
When asked to disclose how much the Federal Government has committed to the project so far, he said it was only the Director of Finance that could confirm that.
However, further hearing in the case has been adjourned to October 21.
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