Julius Berger Owing FG N100bn From Abuja-Kaduna-Kano Road Project Says Umahi

The minister of Works, David Umahi, has disclosed that Julius Berger is still owing the federal government N100 billion from N739 billion payment on the terminated Abuja-Kaduna-Kano road.

He said while N27 billion has been waved, the company was yet to make the N73 billion refund to the federal government.
Umahi while addressing a news conference on Thursday in Abuja also raised serious concerns over massive and persistent vandalisation of critical infrastructure projects across the country.
He said the current administration on assumption of duty met with Julius Berger on the Abuja-Kaduna-Kano road project.
“Don’t forget that that project was divided into four sections and the total cost was N150 billion and it was for rehabilitation and don’t forget that Berger pushed away the rest of the contractors and took over the entire project,”.
He said the project was now fully awarded to Julius Berger at N650 billion.
“And at the time we met them, the total cost of the project and what they had collected was N739 billion
“And that’s where we met them. And out of 350 kilometres, they had completed about 240 kilometres. And that’s about 65 per cent of the project. And so, we now engaged them. Now, the balance of the project, you know, was about 210 kilometers by two, that’s 420 kilometres.”
He said the ministry agreed to review because it was before the floating of the Naira and it was before the lifting of subsidies.
“And with the final decision, Julius Berger offered to do the remaining 230 kilometres for N1.5 trillion, but we offered, N1.1 trillion. And they did not agree.
“We took the matter even before the chief of staff, the president, the national security advisor, the general partner, we went for meetings several times. And when we couldn’t afford, because we didn’t know where to find N1.5 trillion, we had to terminate the contracts,”.
He said all procedures for contract termination, and we followed it, adding “when we terminated the contracts, Berger went to do a meeting with the National Assembly, you know, and they said, look, Minister of Works is terminating our projects.
“Don’t forget that we are still owing government N100 billion. And that was very shocking to us, because Berger went to the National Assembly.
“They reported themselves, that out of this N739 billion, we are owing government another N100 billion. Now, I hope we didn’t know, because the payment was being done by National Sovereign Investment (NSI) So it’s being done by them, so they are paying it,”.
He narrated that the NSI confirmed the payment and “so, we now came back to check our records somewhere and we discovered they were owing N100 billion.
“after everything, the ministry allowed about N27 million claims, made by Julius Berger and so, we now say please return to government N73 billion.
“People are running around, going here and there, you know, damaging our names, but the point is, I told them, that they should not waste their time, that it’s only the president that can write off that amount”.