JUST IN: FG Terminates Okene-Auchi, Obajana-Benin, Two Other Road Contracts Due to Delay in Completion

The federal government has announced the termination of four major road contracts awarded to Raynolds Construction Company (RCC), Mothercat Construction Company and Dantata and Sawoe.

The contracts were terminated due to “delays” and “failure to adhere to stipulated standards.”

The Minister of Works, Eng. David Umahi in a statement he personally signed on Monday announced the termination of the contracts for the road projects that cut across Kogi and Edo states.

Umahi revealed that the road contracts have been given to other contractors,  but did not reveal their identities.

The minister’s statement read:

“Under my leadership as the Minister, the Federal Ministry of Works has terminated its contracts with Mothercat, Dantata and Sawoe, and RCC companies due to delays and non-performance in the dualization of the Obajana-Benin Roads, specifically sections II, III, and IV. We have also issued a warning that all funded but non-performing contracts will be terminated.

 

“The projects affected by this termination include:

 

1. The dualization of Obajana-Benin road, section II (Okene-Auchi) in Kogi/Kogi States.

2. The dualization of Obajana-Benin road, section III (Auchi-Ehor) in Edo State.

3. The dualization of Obajana-Benin road, section IV (Ehor-Benin) in Edo State.

 

“The termination of these contracts became necessary due to the significant delays and the contractors’ failure to meet their contractual obligations as stipulated by the Standard Conditions of Contracts. This non-performance has hindered the timely completion of the projects, leading to the expiration of the contracts due to effluxion of time.

 

“Awarded on December 3, 2012, these projects were unfortunately abandoned by the contractors, who showed no genuine commitment or good faith toward executing the projects despite accepting the Federal Government’s considerations. This neglect has subjected road users to severe hardship due to the deplorable conditions of the roads.

“In light of these circumstances, we have decided to terminate the contracts and direct other bodies to take over from the affected companies to ensure the projects’ completion.