By Ekemini Simon 

IN this second and concluding part of this investigation, Ekemini Simon takes a look at multiple contracts awarded to different companies for the yet-to-be-finished reconstruction of Abak-Ekparakwa-Ete-Ikot Abasi road. 

Read the first part HERE.

Regardless of the N5.89bn reconstruction contract awarded to CCECC for the reconstruction of the Abak-Ekparakwa-Ete-Ikot Abasi federal road, the federal government through the Federal Roads Maintenance Agency (FERMA) and Federal Ministry of Works and Housing between 2019 and 2022 budgeted N896.4m for repairs maintenance of this road and awarded contracts to eight companies.

Even as the reconstruction project is yet to address fully the dilapidated condition of the road, at least the repairs and maintenance contract awarded to eight contractors for this project within the last four years and N753 million spent on the repair project should have changed the miserable condition of the road.

Multi-millions spent yearly for shabby repairs of Essene Spur 

Checks into the Open Treasury Portal of the Federal Government reveal that in recent times, funds disbursement for the repairs and rehabilitation of the Abak-Ekparakwa-Ete-Ikot Abasi federal road commenced on December 31, 2019 to the contractor, Sunnex Nig Ltd with N23.40m paid. The contractor specifically had the contract of general maintenance of the spur called Essene in the Ikot Abasi section of the project. Through the aid of Google Map, an Open-Source App that measures distance, TheMail discovered that the road measured 3km.

Findings reveal that this road was shabbily repaired by Sunnex Nig. Ltd under the supervision of FERMA and consequently broke down in less than six months. Checks at the Corporate Affairs Commission (CAC) reveal two Directors of the company; Idris Balogun and Samson Idris.

Seventeen months after the contract in 2019, another firm, I.C.O Engineering Consult Limited was awarded a contract for the maintenance of the road with N31.74m paid on May 3, 2021. When TheMail visited the road in November 2022, community leaders admitted that although repair work was carried out in December 2021, a section of the road measuring about 1km returned to its deplorable state as soon as the rainy season set in around April/May 2022.

A Community Leader in Essene, Otuekong Emmanuel Ekanem, said, ” The company that came under the supervision of FERMA only patched the potholes. It was done haphazardly. After that, as soon as the rainy season arrived, everything was washed away. This is not the first time it has happened. Each time they come to repair this road, it does not last beyond six months. We need a fresh reconstruction else resources would continue to be wasted”.

Checks at CAC reveal Okorie Ifeanyi Clement, Okorie Clement Joel, Chikaodiri Okorie Ezekiel and Humphery Emenogu Ikenna as Directors of the company.

After this newspaper had written a Freedom of Information request to FERMA and the Federal Ministry of Works in Mid December for information and evidence of spending on rehabilitation projects on the road, the Federal Ministry of Works and FERMA awarded contracts to two companies for the emergency repair of this spur.

According to data extracted from Open Treasury Portal, the Federal Ministry of Works and Housing on December 23, 2022, made “Part-payment for the emergency repair work on Abak-Ekparakwa-Ikot Akan Junction (Repair of Essene Road) at N81.53m (Including VAT tax) to A.E. And E. Limited. The company could not be reached at the address provided at CAC nor was there other contact information provided that could have aided the request for information on the evidence of work done.

Yet, eight days after payment was made by the federal ministry of works to repair this particular road, FERMA also made a part payment of N34.15 million for the “major maintenance” of the same road to Delko Holdings Nig Ltd.

Delko Holdings did not respond to the FOI request sent to the company for information and documents on the contract.

TheMail had requested for a contract approval letter, cost of the contract, contract duration, payments received so far from the government including date of payment, kilometres of total project/ kilometres of work executed/cost per kilometre, stage of work executed and location covered, and photos of before and after execution.

When TheMail Newspaper toured the road again on January 20, 2023, the newspaper noticed that repair work had commenced on the bad section of the road.

The newspaper reached the Chairman of the company, Ahuko James, by phone, who told TheMail newspaper that his company is the one undertaking the repairs. He said they had started the repair work immediately after receiving payment but stressed that the N34.15m is only advance payment for their work.

He assured that the company’s manager would respond to the FOI request from the newspaper. But this was not responded to before filling this report.

As stated earlier, A.E and E Limited could not be reached to give evidence on where they executed their contract.

Interestingly, when this newspaper revisited the project in mid-February 2023, the bad section of the road, which spans 1km, has been repaired. Surprisingly, however, De Bently Limited appeared on the signpost as the contractor of the project.

Checks at the Open Treasury Portal reveal that throughout the period under investigation, the company was not awarded the contract in Akwa Ibom state, thus raising suspicion that the project may have been subcontracted to the company.

Yet, background check of the company raises questions about their expertise. Checks at CAC did not yield comprehensive results about the company except that they were registered on June 18, 2010, with an address at 12 Gindiri street, Garki 2, Abuja.

However, analysing information on the company’s address as provided on the signpost at Essene Road raises a red flag. The address is Plot 892, Ngozi Okonjo Iweala Street, Utako District, Abuja. Investigations reveal that the company that occupies this premises is a hospitality outfit called Bently Hospitality Services and Consultancy Services, registered at CAC on October 19. 2022.

Extrabudgetary spending on ghost repairs, maintenance 

Contract for the repairs and maintenance of the main stretch of the Abak-Ekparakwa-Ete-Ikot Abasi road received more than the budgeted funding in 2021. Checks into the 2021 Appropriation Act show that the total amount budgeted for repairs and maintenance for the road was N162.98m.

Since CCECC has overlaid 27km from Abak to Ibekwe in Mkpat Enin and 1.4km in Ikot Ntot in Mkpat Enin, it implies that the focus on repair and maintenance works should be on the remaining 20 kilometres.

Interestingly, the federal government, through FERMA, paid more than the budgeted amount. FERMA paid two companies, Cossel construction and Ok & Joel Engineering for the rehabilitation and maintenance of the stretch of the federal road in 2021. These two companies received a total payment of N223.17m, which is 36.9 per cent higher than the budgeted amount.

Cossel construction did not respond to the FOI request for information and documents on where the company worked despite acknowledging receipt of our letter in early December 2022.

Checks at CAC reveal Cosmas Anigbogu and Raymond Anigbogu as Directors of the company. The newspaper could not reach Ok & Joel despite several efforts. The company had moved out of its Abuja address published at CAC.

An internet search did not also turn out results of the company’s website or other contact information. Yet, further checks at CAC showed that the Directors of I.C.O Engineering, which were awarded the contract for the 3km spur, the same 2021 control shares at Ok & Joel with the addition of Ifeanyi Okorie Chisom as Person with Significant Interest (PSC) and Christopher Okegbe as Secretary.

In the 2022 fiscal year, although there was no budgetary provision in the Amended Appropriation Act for the repairs of this federal road beside the Essene spur and the Ekparakwa Etinan section, the repairs and maintenance of the Abak-Ekparakwa-Ete-Ikot Abasi road continued to gulp multimillion naira without evidence of project execution. ‘Two other companies, Ken-Next Venture and Omron Construction were reported at Open Treasury Portal to have been paid N359.01m between April and June 2022 for the project.

TheMail had sent FOI requests in December 2022 to the FERMA and the above companies seeking information and documents on implementing their contracts.

The request specifically sought information and documents on the contract approval letter, cost of the project, payments so far received, kilometres of work executed, precise location on the road the project was executed, stage of work implementation, photos of before and after execution, and certificate of completion.

Instead of responding to the request, FERMA Akwa Ibom Office told TheMail Newspaper to write to its head office for the information. Although the FOI puts the responsibility of the writing on the State office, this newspaper still wrote to the Managing Director/ Chief Executive Officer of FERMA in Abuja. Even though the letter was acknowledged by the office in mid-December, 2022, the request was never acceded to by FERMA and the companies.

When TheMail toured the road in November 2022, the newspaper did not see evidence of repairs or maintenance on the stretch by the companies awarded the contract between 2021 and 2022.

Checks at CAC show three Directors at Ken-Next Venture; they are Onah Adaeze Favour, Onah Blessing Omotewho and Onah Kelvin James, who is the only one tagged as Person with Significant Control (PSC). Also, CAC checks reveal the Directors of Omron Construction to be Adesokan Olufunmbi (PSC), Olatunji Adedamola (PSC) and Olatunji Jameel.

‘We have not received any contract or payment’  Ken-Next Opens Up

Although data at Open Treasury Portal shows that Ken-Next Venture was paid N62.78m on April 1, 2022, for the “maintenance of Eket -Ikot Abasi road relocated to Ete-Abak road, an official of the company said that neither a contract was awarded to the company nor the contract fund published to have been paid ever got to the company nine months after the reported payment.

Although staff members of the company rejected the FOI request when TheMail visited their office in Port Harcourt on December 13, 2022, this newspaper went ahead to send the FOI request through the official mail address of the company. This still was not responded to. Yet, through a phone call, the newspaper reached Kelvin Onah which CAC documents show as the only Person with Significant Control in the company.

Kelvin, who admitted to having seen the FOI request, said his organisation thought it was an error since they had not received such a contract and hence did not see a need to respond.

He insisted that neither the contract for the repairs of the road has been awarded to his company nor the amount reported to have been paid to them.

Procurement regulation breached as FERMA awards Contract to splitting companies 

Investigations have also shown that procurement processes were neglected by the procuring entity — the FERMA on the award of the repairs and maintenance of the road project. Findings showed that the agency contravened the public procurement law by awarding the contract for repairing the Abak-Ekparakwa-Ete-Ikot Abasi road to two companies with the same directors.

Enacted in 2007, the public procurement act clearly determines how public procurements should be conducted by ministries, departments and agencies

Section 58 (10 a and b) lists bid rigging among procurement offences.

It notes that “bid-rigging means an agreement between persons whereby offers submitted have been pre-arranged between them; or their conduct has had the effect of directly restricting free and open competition, distorting the competitiveness of the procurement process and leading to an escalation or increase in costs or loss of value to the national treasury”.

The FERMA did not give much regard to the Act. Instead, the agency went ahead to award the contract to two companies; I.C.O Engineering Consult Limited and Ok & Joel Engineering Services Limited, which data indicates that they engaged in bid rigging.

Checks into the CAC records revealed that these two companies shared the same Directors; Okorie Ifeanyi Clement, Okorie Clement Joel, Chikaodiri Okorie Ezekiel and Humphery Emenogu Ikenna. In both companies, Okorie Ifeanyi Clement is reported as the person with significant control.

Further analysis of the companies’ data suggests that it would not have been difficult for FERMA to identify the rigging if they had wanted to adhere to the provisions of the procurement. I.C.O Engineering Consult Limited and Ok & Joel Engineering Services Limited share the same registration address provided at CAC; No.9 Port Said Street, Zone Wuse Abuja, Abuja.

What is more, the payment date reveals that the FERMA is complicit in the deal. These two companies were awarded the contract for the road project in the same month in 2021.

Data from Open Treasury Portal shows that while I.C.O Engineering Consult Limited received N31.74m payment on May 3, 2021, Ok & Joel Engineering Services Limited got a payment of N80.23m 24 days after on May 27, 2021 for the same work.

When this newspaper in early December 2022 visited the address provided by the companies to submit a FOI letter requesting information and documents that give evidence of the project execution by the companies, it was gathered that the companies had moved from the facility without an alternative address. Search on the internet neither turned out results on the official websites of the companies nor phone and email address.

FERMA’s suspicious spiral of silence 

Getting information and documents from the FERMA didn’t turn out successful. Every effort was stalled.

An FOI letter was sent to FERMA’s office in Akwa Ibom State.  The Federal Roads Maintenance Engineer, Akwa Ibom State, L.O. Onimago refused to respond and directed the newspaper to request information and documents from its corporate headquarters in Abuja.

The newspaper made the request to FERMA’s corporate headquarters in Abuja in mid-December 2022. The office failed to respond despite acknowledgement. The office also failed to respond to calls to its official phone contact.

The supervising ministry of FERMA, the federal ministry of works and housing did not also respond to requests for information and documents on the contract. The Director (Planning, Research and Statistics), O.B Ode-Martins who responded on behalf of the Minister told this newspaper to obtain the details requested from FERMA under whose purview the project items fall.

The excuse of not acceding to the request is evasive since FERMA is under the supervision of the federal ministry of works and Housing.

Besides, if it is determined that the information sought is domiciled with another agency, the Act also gives the Minister the responsibility to transfer the request to the concerned agency, not the journalist.

Section 5 (1) reads “Where a public institution receives an application for access to information, and the institution is of the view that  another public  institution has greater interest in the information, the institution to which the application is made may within 3 days but not later than 7 days after the application is received, transfer the application, and if   necessary, the information, to the other public institution, in which  case, the institution transferring the application shall give written  notice of the transfer to the applicant, which notice shall contain a  statement in forming the applicant that such decision to transfer the  application can be reviewed by the Court.”

FERMA in a Web of Consistent Fraud, Illegality

This is not the first time FERMA will be caught in the Web of fraud and illegalities.

In March 2022, the House of Representatives was moved to investigate what it alleged as monumental fraud and illegalities going on at FERMA.

The Minority Leader of the House, Ndudi Elumelu had expressed worry that most of the contracts awarded by FERMA are alleged to have been cornered by the management for themselves and their cronies who abandon the site after collecting a reasonable percentage of advance payment of contract sum.

“Further worried that if these spate of unbridled pilfer by top government officials is allowed to fester and unchecked it will not only drain the national purse but discredit the perceived fight against corruption by this government in the eyes of the international community, hence the need for this motion,” he said.

CSJ faults Ministry, FERMA on controversial procurement

The Centre for Social Justice has condemned the procurement method used in the repairs and maintenance of Abak-Ekparakwa -Ete-Ikot road including its spurs.

Briefed by the concerns, the Executive Director of the Centre for Social Justice, Eze Onyekpere noted that using two contractors with same Directors for a particular contract is corruption and grossly against the procurement requirements.

“This is just the same set of people using the mask of incorporation to get the same contract. In procurement, there should be competition.

Onyekpere, who equally condemned the practice of the Ministry of Works and Housing together with FERMA awarding the contract for maintenance of Essene Road during the same period, said the practice gives a leeway for money to be diverted.

“That is double counting so that money can be taken from the treasury. In such a situation, who will actually do the work”, he queried.

He also noted that for eight contractors to be awarded maintenance of a road project without specific information on the particular area or kilometres assigned is a red flag for corruption.

“They are supposed to show different sections they award contracts. For instance, that the contract is divided into lots; 1, 2 or 3 and show the kilometres of the contract awarded to each contractor so that people can know who is doing what and how they are expected to do it.”

The Executive Director said sometimes government officials intentionally fail to include this information in the contract so as to avoid thresholds of approvals hence give the contract to their cronies.

Onyekpere explained that when contracts follow the threshold approvals, it will demand more meticulous consideration of assessment by higher authorities thus the reason officials of the contracting officials make it opaque.

*This investigation is supported by the John D. and Catherine T. MacArthur Foundation and the International Centre for Investigative Reporting*