Olivia Reyes
Fri, Sep 8, 2023 2:15 PM

Contract Inflation in FCT: A Shocking Revelation

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Contract Inflation in FCT: A Shocking Revelation
The Federal Capital Territory (FCT) Minister, Nyesom Wike, expresses shock at the alarming rate of contract inflation in FCT. Contracts worth billions have been inflated to astonishing figures, raising concerns about accountability and transparency. Wike vows to put an end to these disparities and overhaul the engineering services within FCDA.

The Federal Capital Territory (FCT) Minister, Nyesom Wike, has expressed deep concern over the shocking disparity and inflation of contracts within the Federal Capital Development Authority (FCDA). With contracts originally valued at about 10 billion naira escalating to a staggering 119 billion naira, the scale of the problem is unsettling.

During a press briefing held while inspecting the Ushafa-Bwari road construction project, Wike expressed his astonishment, saying, "I have never seen a thing like this in my life. What we see in FCDA contract variations from 10 billion naira to 119 billion naira and from 50 billion naira to 200 billion naira is alarming, and I am not going to accept this."

Highlighting the scenario of the Ushafa-Bwari road project, Wike revealed its revision and subsequent payment of around 50 billion naira, with only a remaining outstanding amount of 900 million naira. However, the contractors claim this is insufficient to complete the project that they assert is already 90% complete.

"Therefore, asking for another variation, we are not going to accept. Even the engineering services, we are going to overhaul the system," Wike disclosed, emphasizing his determination to combat this growing issue.

Further addressing infrastructure projects, Wike visited the rehabilitation of the Lower Usuma Dam Water Works along the Gurara Road in Bwari. He discovered that the project, initially declared as an emergency contract, had not been awarded in its entirety.

Surprisingly, it was only in August 2022 that the contractor expressed interest by providing a letter of intent. Realizing the importance of the project in supplying water to the city and surrounding areas, Wike announced the reclassification of the project, eliminating its emergency status.

"I knew the importance of this project in supplying water to our people within the city and its environs. Water is very important, and so I have directed that the project is no longer an emergency," affirmed Wike, emphasizing his commitment to rectify the situation.

The revelations by the FCT Minister shed light on a deep-rooted issue that has plagued the capital city's infrastructure development. The stark disparity between initially estimated project costs and the inflated figures raises significant concerns about accountability, transparency, and the credibility of the FCDA.

This alarming trend of contract inflation not only hampers the effective delivery of crucial projects but also drains public funds that could otherwise be utilized for the betterment of society. It erodes public trust in the government's ability to ensure responsible allocation of resources.

The FCT Minister's determination to stop this practice is indeed commendable. By vowing to overhaul the engineering services and scrutinize contracts more closely, Wike aims to ensure that such disparities in project costs will no longer be tolerated.

The responsibility does not solely fall on the government but should also extend to contractors and stakeholders involved in these projects. It is imperative that all parties exercise transparency, ethical practices, and adhere to agreed-upon contractual terms.

Going forward, a comprehensive review of the contracting process and periodic audits must be implemented to curb contract inflation effectively. Additionally, measures to promote competition, fair bidding, and stringent monitoring will enhance accountability and prevent the mismanagement of public funds.

In conclusion, the shocking disparity between estimated and actual project costs within the FCDA necessitates urgent action. With Nyesom Wike at the helm, the Federal Capital Territory can embark on a journey towards transparent, accountable, and responsible governance. The fight against contract inflation requires the collective effort and commitment of all stakeholders to restore public trust and ensure the efficient delivery of critical infrastructure projects.

Source of content: OOO News 2023-09-08 News

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