The Oyo State House of Assembly has summoned the contractor handling the circular road concession project, ENL Consortium Limited over threat to drag the state government to Court of Arbitration.
The House alleged that the road project has been politicized and there is need for the contractor to appear before it to unravel perceived irregularities surrounding the project.
The House described the step not only as embarrassing to the people of Oyo State, but also an insult on the sovereignty of the nation.
The ENL had threatened to drag the state government to the Court of Arbitration in London on the allegation that the firm jerked up a road project cost from N14 billion to N67 billion.
The lawmakers made the resolution during the plenary during the week after Deputy Speaker, Hon. Mohammed Abiodun Fadeyi raised a motion under Mater of Urgent Public Importance “On the Need To Call Attention of the People Issue Surrounding the Circular Road Project.”
The Deputy Speaker said that there is need to call the attention of the people of the state to the issue surrounding the project, alleging that it has been politicized.
Hon. Abiodun clarified that the suspension order by the Governor, Engr. Seyi Makinde does not translate to revoking of contract. He added that the order was based on the assessment of the governor on the project, which he said was about 5.5 percent over two and half years ago when the contract was awarded.
Hon. Adeola Bamidele representing Iseyin/Itesiwaju state constituency, in his submission, noted that ENL Consortium should have sent appreciation letter to the Oyo State government and the people of Oyo State for their magnanimity instead of threatening to sue.
He pointed out that the extremely slow pace of work on the contract which meant that only 5.5 percent of work had been done in two and a half years does not justify the company’s readiness to ease the suffering the people are facing due to poor road network.
He said, “The work was stopped initially because a number of issues don’t look straight on the project, ranging from the cost of the contract to the capacity of the consortium and eventual value for money realities.
“Now, Governor Seyi Makinde has ordered ENL to go-ahead and complete the project by May 2020 as specified in the contractual agreement signed with Oyo State Government, because he prioritizes provision of infrastructures for the comfort of our people above any fact-finding processes that may take longer than expected.”
The Speaker of the House, Hon. Adebo Ogundoyin expressed shock over the threat from ENL Consortium after the review meeting between the contractor and officials of the state government which led to the back to work order.
“If as a contractor, you signed a three years contract in 2017, in 2019 you’ve not delivered up to 10 percent of the project, then we need to invite such company to come and explain to our people the reason behind this inefficiency.
“The Chairman of ENL, Prince Clement Haastrup has shown interest in clearing his name as he did not want to be derided as one of those that messed up the country.
“Therefore in the interest of our people and the Oyo state government, we will be inviting ENL Consortium to come before this honourable house and furnish us with details around the Ibadan circular road concession project,” he added.
The 32-kilometre road contract awarded by the immediate past administration of Senator Abiola Ajimobi under a Build Operate and Transfer arrangement at the cost of N67 billion ENL Consortium.
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