Road Project Abandonment: Senate Withdraws Warrant of Arrest on Julius Berger’s Boss

Sunday Aborisade in Abuja

The Senate yesterday withdrew its proclamation on warrant of arrest on the Managing Director of Julius Berger Nigeria Plc, Dr. Peer Lubasch, for persistently refusing to appear before its Committee on Works.

This was sequel to a letter of apology from the company which was read at plenary by President of the Senate, Godswill Akpabio.

The Red Chamber had last December passed a resolution to issue the warrant following a motion.

The motion was moved by the Senate Minority Whip, Senator Osita Ngwu and co-sponsored by Senators Asuquo Ekpenyong (APC, Cross River South) and Mpigi Barinada (PDP, Rivers South-East).

In his motion, Ngwu had informed the Senate that Julius Berger Nigeria Plc had consistently failed to honour invitations to provide explanations regarding project abandonment and an alarming increase in contract costs from N54 billion to N195 billion.

Ngwu, in the motion had said, “Julius Berger Nigeria Plc has neglected and refused to honour invitations to provide details of their role in the Odukpani-Itu Highway project, despite receiving substantial public funds amounting to over N18 billion.”

At a meeting with the Senate Committee on Works yesterday led by Mpigi Barinada, the Managing Director of Berger read same letter to the hearing of members of the Committee.

The Julius Berger boss enumerated forex volatility, delay in payment by the federal government, and lack of access to the rights of ways as major encumbrances to the completion of the road project.

He said the development culminated in the mutual termination of the project and recalled that the construction company had in 2003 requested for contract variation for the job that was awarded in 2017.

Barinada in his opening remarks told the team led by MD of Berger that the Odukpani- Itu- Ikot Ekpene highway was not only for the Niger Delta indigenes but a major artery for Nigerian road users.

He said, “We are aware of your leadership transition but you must meet the expectations of Nigerians.

“As you have tendered a formal apology, the President of the Senate ruled in your favour.

“Your letter of apology shows a positive attitude to respond to our concern.

“Our concern is about efficiency, accountability transparency in all projects. We want to seize this opportunity to warn other companies that this is just a warning sign.

“Since 2015, contactors have been mobilised and they have abandoned sites. We are determined to recover taxpayers’ money. No one is above the law.

“Our aim is not to disrupt progress but to ensure that jobs are done. Nigerians look up to us.”

The Chairman of the Senate Committee told management of the construction company that severely ugly incidents have occurred on the abandoned federal highways.

He said, “This Senate won’t fold our arms.  If anybody is terminating a project, we must be involved.

“There must be shared commitment to national projects.”

Barinada maintained that it was wrong for the “Ministry of Works to terminate the contract without recourse to the Senate where funds for these jobs are being appropriated.”

Senator Seriake Dickson who described Julius Berger as a reputable construction company cautioned it against indifference towards summon by the National Assembly.

He said, “Your company has a good reputation, don’t let things get out of hand next time.

“From my days in the House of Representatives, we have been talking about this road. That was over eight years ago. I am surprised that we are still talking about this road.”

Senator Asuquo Ekpeyong in his submission said the motion seeking for the reprimand of the German construction company was, “because of the hardship we have suffered for years.”