Ongoing investigation into contracts for railway modernisation by the past administration has further exposed how that very critical project was mishandled, and how the project contractors evaded taxes amounting to N4.907 billion, according to available records.
The consultancy contract was for the implementation of the Eastern Line and Western Line railway project, which was awarded by the Nigerian Railway Corporation (NRC), under former President Goodluck Jonathan’s administration.
The record, for instance, showed how the contract for the design, installation and commissioning of modern signalling and communications for Port Harcourt to Maiduguri awarded for N5.62 billion was later reviewed upward to N10.38 billion, showing a difference of N4.76 billion.
“Other additions like ‘provision for performance bond or indemnity, provision of rented and furnished accommodation for one expatriate consultant, etc, amounted to N368.5 billion.”
According to the report, the unpaid taxes for the design, installation and commissioning of modern signalling and communications for Port Harcourt to Maiduguri contract was N518,753,214.46.
Other unpaid taxes by the contractors handling the railway projects include: N53,086,422.43; N614,669,500 withholding tax for the contract worth N12,293,399,000, and N608,391,328.93 withholding tax for another contract worth N12,167,826,578.67.
Similarly, the contract for consultancy services for rehabilitation of Nigerian railway tract network, awarded to Roughton Consortium at the sum of £2,085,627.40 was unilaterally inflated/reviewed twice to £5,615,836.13 and thereafter to £7,723,794.13.
These increases, according to the Auditor-General of the Federation’s report seen by BusinessDay, were inclusive of Value Added Tax and Withholding Tax worth £772,379.41.
The AGF in the report, also disclosed that the “contract for the rehabilitation of railway, tract network – Port Harcourt to Makurdi 463km awarded to a company incorporated in Ankra, Turkey at N19.165 billion, after the company gave a discount of 4 percent of the original contract sum of N19.963 billion.
“However, valuation of work done was based on the tender documents of N19.963 billion instead of N19.165 billion. It therefore means an overpayment of N798,550,093.23.”
Likewise, “the provisional lump sum of N339 million was inserted without breakdown and others amounting to N359 million.
“Another contract for rehabilitation of railway track – Makurdi to Kuru, including spur lime to His, Kafanchan to Kaduna junction (1,016km) awarded at N24,451,681,626.97.
Additions like ‘provision for performance bond or indemnity, provisional lump sums not broken down totalling N353.5 million,” the AGF report read in part.
Meanwhile, the ad hoc committee investigating the railway modernisation contracts between 2010 and 2014, chaired by John Agbonayinma has summoned the managing director/CEO of Roughton Consortium over the non-execution of the project, two years after the payment of the contract sum.
According to Agbonayinma, the company, which requested 33 months extension for the completion of the consultancy contract, secured undisclosed amount contrary to its position that the request will be at no cost to NRC.
Agbonayinma, who issued the directive, had expressed dismay over the underhand dealings that led to the breach of the contract agreements.
He also frowned at the payment of N554 million to the contractor against the sum of N71 million for a particular project.
Speaking earlier on the consultancy project, Ikechukwu Egbunna, country director for Roughton Consortium, told the Committee that he was not in the position to say whether the extension for the completion of the consultancy project attracted additional cost or not.
KEHINDE AKINTOLA
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