Agric Ministry Clarifies N2.5bn Spent on Bush Clearing

•Lawmakers write CAC, FIRS, vow to unmask identities of companies involved in alleged N18bn contract

James Emejo and Udora Orizu in Abuja

The Federal Ministry of Agriculture and Rural Development yesterday clarified that contrary to speculations that it spent N18.9 billion on bush clearing and land preparation during the COVID-19 lockdown, the actual amount spent was N2.5 billion.

It said media reports which emanated from the House of Representatives Committee on Public Accounts’ sitting, alleging that the sum of N18.9 billion was used for bush clearing during the pandemic was misrepresented.

This was just as the Public Accounts Committee of the House of Representatives yesterday resolved to unmask the real identities of the owners of the companies which it maintained took contracts valued at the sum of N18.9 billion from the Federal Ministry of Agriculture and Rural Development for clearing of bushes, land preparation, rehabilitation of soil plant lab and others during the COVID-19 lockdown in the country.

However, the Ministry’s Director of Information, Dr. Joel Oruche, in a statement contended that the ministry at no time received any audit query to warrant summon by the committee.

Oruche said, “The ministry only carried out bush clearing and land preparation of 3,200 hectares in eight states of Osun, Ekiti, Edo, Cross River, Kaduna, Kwara, Plateau and Ogun States as allocated by respective state governments at a total cost of N2.5 billion.

“In addition, other projects executed by the Ministry during the COVID-19 period that sums up to the total sum quoted included the following:

“Construction of rural roads in the six geo- political zones of the country, soil sampling and mapping, farmers’ registration as well as rehabilitation and the equipping of four National Soil laboratories in Umudike, Ibadan, Kaduna and FCT Abuja.”

The statement added that “All these projects were successfully executed and verified by relevant government agencies and were part of stimulus package under the Agriculture for Food and Jobs Programme of the federal government to generate employment and grow the economy to mitigate the effect of COVID-19 pandemic in 2020.”

According to reports, the House Committee had frowned at the N18.9 billion worth of contract for bushing clearing, land preparation, rehabilitation of soil plant lab and others by the ministry.

Consequently, the committee has reportedly launched an investigation to ascertain the true situation.

Chairman of the committee, Hon. Oluwole Oke, had said the House was interested in finding out the location and significance of such projects.

He also said the committee had invited the ministry and the companies involved.

Meanwhile, the Public Accounts Committee of the House of Representatives yesterday resolved to unmask the real identities of the owners of the companies which took the contracts.

The resolution of the lawmakers was sequel to the appearance of representatives of two out of the 20 affected companies at the resumed investigative hearing of the committee on queries to Ministries, Departments and Agencies of the federal government by the office of Auditor General of the Federation.

The two companies were: Easy Construction Company Limited and NUKAAG ventures Limited, while 18 others failed to show up.

The Chairman of the Committee, Oke said the two representatives of the companies (Johnson Philip and Taiwo Idowu) were of the managerial level and as such not competent to appear before the Committee going by the House rules.

Responding to a question by the lawmakers on whether they were familiar with the submission to the Committee on the award and execution of the contracts, the duo said no.

To this end, the Committee directed the duo to leave immediately and that the Managing Directors or Chairmen of the companies should personally appear before it and answer questions regarding the contract.

Oke also directed the Clerk of the Committee to write to the Registrar of the Corporate Affairs Commission (CAC) to furnish the Committee detailed information of the 20 companies, including year of incorporation, corporate offices, names of the owners, shareholders, amongst others.

He assured that the parliament would properly investigate the matter to find out the location of the projects and the significance of such projects to the country.

“We are not concerned about who won the contracts, what we are after is the value for money paid out and the sites of the projects, and we will carry that mission to the letter. The Clerk should also write the Federal Inland Revenue Services to furnish the Committee the financial status of the companies,” he said