Senate, Julius Berger Settle Dispute Over Abandoned Projects

The Senate has resolved its ongoing dispute with Julius Berger Nigeria Plc, lifting a warrant of arrest previously issued against its managing director, Engr. Peer Lubasch, for failure to appear before the Senate Committee on Works to explain the abandonment of key projects.

The warrant, issued on December 12, 2024, came after the company repeatedly failed to honour the Senate Committee’s invitation to clarify the state of abandoned projects and the drastic contract variations, including the hike from N54 billion to N195 billion.

Senator Osita Ngwu (PDP, Enugu West), who had moved the motion for the warrant of arrest, was supported by Senators Asuquo Ekpenyong (APC, Cross River South) and Mpigi Barinada (PDP, Rivers South East). The motion highlighted Julius Berger’s failure to attend meetings with the Senate Committee, which raised concerns about project execution and accountability.

However, the matter took a positive turn on Tuesday during plenary when the Senate voted to vacate the arrest warrant following a written apology from Julius Berger.

The letter, dated January 10, 2025, was addressed to the Senate President, Godswill Akpabio, through the Senate Committee on Works Chairman, Senator Barinada Mpigi.

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In the letter, Julius Berger acknowledged its failure to attend the previous hearings, attributing it to miscommunication during a leadership transition. The company respected the Senate and committed to attending future committee meetings.

“We sincerely apologise for missing the previous meeting due to miscommunication during our leadership transition: our new Managing Director, Engr. Dr. Peer Lubasch had just assumed office and was being briefed on ongoing projects,” the letter read in part.

After a voice vote, the Senate accepted the apology, and the Investigative Panel acknowledged the letter.

The panel, headed by Senator Mpigi, warned the company against allowing such issues to escalate to a level where project abandonment and arrest warrants are involved.

Engr. Lubasch, while appearing before the committee, explained that slow payments and significant cost variations were major contributors to the tensions between Julius Berger and the Federal Ministry of Works.

He emphasised the company’s commitment to quality and its long-standing track record in Nigeria since 1965, with over 10,000 direct employees and more than 150,000 indirect workers.

The Senate Committee assured Julius Berger of its support in resolving the disagreements with the Ministry of Works to ensure smooth project execution and timely delivery.