David Umahi
By Funso Alarape
Tuesday May 7, 2024
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Works Minister, David Umahi has replied to former Vice President Atiku Abubakar insisting that the Lagos-Calabar Coastal Highway contract followed the procurement process.
He stressed that the 700-kilometre, 10-lane highway was conceived as an Engineering, Procurement, and Construction plus Financing (EPC+F) project.
Atiku who was the Peoples Democratic Party (PDP) presidential candidate at the last general election had carpeted the federal government for awarding the Lagos-Calabar Coastal Highway contract to a company belonging to the Lebanese-Nigerian family, the Chagourys, a long-time business associate of President Bola Ahmed Tinubu and that Tinubu’s son, Seyi was alleged to be on the board of a sister company executing the project
Atiku had said, “The contract was granted in violation of procurement regulations. The fact that President Bola Tinubu’s son and his surrogates are on the board of companies owned by Gilbert Chagoury constitutes a conflict of interest.
“Tinubu’s son, Seyi, is a director on the board of CDK Integrated Industries, a subsidiary of the Chagoury Group, which manufactures ceramic tiles and sanitary towels.
“The former Vice President restated that it has become obvious even to the undiscerning that the Lagos-Calabar Coastal Highway is being done in a hurry purely because of the business relationship between Tinubu and Gilbert Chagoury, the owner of Hitech, the contractor that was awarded the contract for the highway project in contravention of the procurement laws. It is on record that this project is the most expensive single project ever embarked upon by the Nigerian government.”
However, the Presidency through Bayo Onanuga the special adviser to the president on information and strategy, dismissed the allegation of conflict of interest raised by former Vice President Atiku Abubakar, saying that Tinubu’s
son has the right to pursue any legitimate business.
The road project, regarded as one of the biggest in Africa, was awarded to Hitech Construction Company Ltd and it will link nine states.
Umahi, in a note, said the approval process went through the Bureau of Public Procurement (BBP) after consideration by the Federal Executive Council (FEC) as prescribed by law.
The model, he explained, entails part-funding by the Federal Government.
He said: “This project is an unsolicited bid on EPC+F.
“Under this model, the investor provides all designs, part of the financing, and construction while the Federal Government provides the counterpart funding.
“The ministry received such a bid, worked on it, and sent it to BPP.
“The BPP worked on it according to the Procurement Act and came up with a price slightly lower than the ministry’s price and even lower than the cost of similar projects awarded five years ago like the Bodo-Bonny project.
“BPP issued a certificate of no objection on the project to the Ministry of Works in line with the Procurement Act.
“The Ministry of Works took the certificate of no objection to FEC and FEC debated and approved it. The project followed due process.”
Umahi also cleared the air on the Environment and Social Impact Assessment (ESIA) report, saying that preliminary approval was issued in December 2023 by the Ministry of Environment and renewed in January.
According to him, the ESIA certification is progressive.
“We have a certified ESIA to start the project.
“We have redesigned the route to put a human face to the decision and to minimize demolition of permanent infrastructure.
“The process of ESIA involves constant stakeholders’ engagement of which many have taken place and I even participated in two in Lagos.
“We are doing everything possible to follow the law,” he said.
The minister maintained that the removal of properties along the route is subject to the rule of law.
He clarified only property owners with proven titles will receive compensation.
Shanties and those with property within the 250-meter shoreline setback without a Federal government title would not be compensated as it is a legal matter, he explained.
Umahi added: “The committee is not in charge of ramp or anything else but to verify those to be paid compensation, authenticate and pay.
“But where there is a title problem, it will need a presidential waiver for such to be paid.
“It is only those with proven titles that will be paid after undergoing all the verification processes.
“We have shortened the process. No delayed files, so property owners are assured that within 72 hours, we will do the needful.
“Anyone with a title within 250 meters and it is not a Federal government title, then only the President can give a waiver for the person to be paid.”
The project is said to be a cornerstone of the infrastructure plan of the Tinubu Presidency.
It has received the support of many Nigerians, including governors of the Southsouth states who last week after their meeting described it as laudable.
For instance, the Edo State Governor Godwin Obaseki, Chairman of Southsouth Governors’ Forum, reading the communiqué of the meeting, said: “We thanked President Bola Tinubu, for commencing the construction of the coastal road from Lagos to Calabar and appealed for speedy completion.
“Work should also commence from the Calabar end.”
Seyi Tinubu has the right to pursue any legitimate business – Presidency replies Atiku
The Presidency said Seyi Tinubu has a right to pursue legitimate business interests in any part of the world.
The Presidency stated this in a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga on Monday.
Atiku Abubakar, in a statement, had faulted the award of the contract for the Lagos-Calabar coastal road to Hitech Construction Company Ltd.
The Presidency accused Atiku of being hypocritical on many national issues.
Onanuga said the fact that Seyi Tinubu’s father is now the President of Nigeria does not disqualify him from pursuing legitimate business interests.
He said Seyi Tinubu joined the Board of Directors of CDK in 2018, adding that he is representing the interest of an investor company.
Onanuga said he found it strange that Atiku could accuse Tinubu of a conflict of interest in the award of the Lagos-Calabar Coastal highway to Hitech Construction Company.
He stated, “Is it not amusing that the former Vice President, a man who openly said he formed Intels Nigeria with an Italian businessman when he was serving in the Nigeria Customs Service, a clear breach of extant public service regulations, is now the one accusing someone else of conflict of interest?
“When he was Vice President of Nigeria between 1999-2007, he maintained his business links with Intels that won major port concession deals.
“As Chairman of the National Council on Privatisation, he approved sales of over 145 State-owned enterprises to his known friends and associates and openly said during his failed campaign for the presidency last year that he would do the same if elected.”
He said that contrary to Atiku’s claim that the Chagourys own the CDK, the Chairman of the company and its highest shareholder is respected General TY Danjuma (rtd).
He added that the Chagourys are minority shareholders in the company, adding only one member of the clan is on its five-man board.
“It is important to state clearly that Seyi Tinubu is a 38-year-old adult who has a right to do business and pursue his business interests in Nigeria and anywhere in the world within the limits of the law.
“The fact that his father is now the President of Nigeria does not disqualify Seyi from pursuing legitimate business interests.
“For the records, Seyi joined the Board of Directors of CDK in 2018, more than six years ago.
“He is representing the interest of an investor company, in which he has interest. He is not a board member because his father is a friend of the Chagourys.
“Information about owners and shareholders of CDK is a matter of public record that can be openly accessed from the website of the Corporate Affairs Commission and CDK.
“Atiku and his proxy did not need a little-known journal to recycle open-source information to make a fallacious argument.
“The Chairman of CDK and the highest shareholder of the company is respected General TY Danjuma (rtd).
“The Chagourys are minority shareholders in the company, and only one member of the clan is on its five-man board.
“We wonder how Seyi’s membership of the board of CDK conflicts with Hitech Construction Company’s work on the Lagos-Calabar Coastal superhighway,” the statement read in part.
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