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NDDC Revokes Contracts of Non-Performing Projects

Leadership
Jonathan Ezeanochie
28th Jan. 2008

The Governing Board of the Niger Delta Development Commission, NDDC, has revoked the contracts of 40 non-performing projects spread across the Niger Delta region and directed the affected contractors and their guaranteeing banks to refund all mobilisation fees paid to them or face prosecution.

The Commission's Executive Director, Projects, Engr. Beniah Elemchukwu Ojum who has already conveyed the Board's decision to the affected contractors and their guaranteeing banks, said the move has become necessary as a result of the inability of the affected contractors to achieve appreciable progress in the execution of their contracts despite written warnings.

He said the commission has commenced the process of re-awarding the contracts, in line with due process, pointing out that the Board was forced to invoke clause 15 of the contracts agreement because the extent of work done fell short of the NDDC standards.

"By NDDC valuations, extent of work stands below acceptable level. This is a clear breach of the contract agreement contractors entered into with the Commission", Ojum stated.

He warned that if the Commission did not receive a bank draft in the entire sum collected by the contractors as mobilisation with respect to the projects, NDDC would have no choice than to "proceed against the company and its principal officers in recovery proceedings, while any criminal conduct connected with it will be referred to the relevant law enforcement authorities."

Describing the exercise as ongoing, Ojum further warned that the NDDC would not hesitate to revoke the contract of other companies that fail to live up to expectation, and advised them to always be at their project sites as extensive inspection of all projects are being carried out to ascertain non performing projects.

A breakdown of the projects shows that 17 of them are classroom blocks, 9 water projects, 4 electricity projects and one each of canalisation, jetty, and shore protection projects. Others are: two road projects, three university hostels, one lecture hall, and one primary health centre project.

Delta State has the highest number of projects revoked with 11, followed by Akwa Ibom State 10, Bayelsa 9, Rivers 4, Ondo 3, Edo 2, while Abia has 1 revoked project.

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