Contract Row: Imo govt terminates N1.3bn project

• Governor reneged on agreement –Contractor

Imo State Government has terminated the N1.3 billion project for the construction of a seven-floor ultra modern state judiciary headquarters awarded to Nnutouch Global Ventures Limited for alleged non-performance and breach of contractual agreement.

According to a statement issued by the Commissioner for Lands, Survey, Housing and Urban Development, Uche Nwosu and made available to Daily Sun, the contract, which was awarded to the company at the tune of N1.32billion for the office area of 15,000 square meter calculated at the rate of N88, 000 only per square meter, was agreed by both parties to be executed and completed within the stipulated period of 12 months.

But the Chairman of the company, Dr. Osita Okereke dismissed the allegation, insisting that it was the state government that reneged on the contractual agreement, especially on the terms of payment.

He disclosed that out of the 30 per cent mobilization agreed with the state government, his company received only 15 per cent, which was plunged into the job.

However, the commissioner revealed that an initial sum of N200 million was released to the company to enable it to complete the foundation level of the building.

“Subsequently, the contractor upon his inability to actualise that level of job, requested for additional payment of N24 million, with a promise to complete the foundation of the building, but again failed to deliver,” he said.

Nwosu further disclosed that the contract was terminated “because after collecting N224 million from the state government, Okereke abandoned the building without completing the foundation as agreed.”

He stated that evaluation carried out by his ministry, which was saddled with the responsibility of supervising the project, had shown that the contractor could not do a job commensurate to the amount committed to the project, pointing out that the government had concluded plans to institute a legal action against the company for defaming the governor.

But Okereke too threatened to expose the governor, who he blamed for the failure of the project.