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N450 million Contracts Scam Rock Ogun Osun Rivers Basin as Senate Orders Refund

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The Senate Public Account Committee (SPAC) on Tuesday how Officials of Ogun Osun Rivers Basin inflated the construction of water dams, overhead tanks totaling about N450 million

The locations of the overpaid projects are Agbado- Isoye Ogun state, Egbado South Local government, Ajinipa in Orire local government, Oyo state, Igan Alade Igua, Yewa North Local government, Panseke in Abeokuta, Asa in Suru-lere local government in Oyo state and many more .

The Agency while appearing before the Senate Committee on Public Account chaired by Senator Mathew Urhogbide were unable to justify allegations of over payment raised against Ogun / Osun Rivers Basin in the 2016 Report of Auditor General’s of the Federation.

The Committee members were irked by consistent overpayment to the contractors by the agency as the officials of Rivers Basin failed to give convince explaination to issue of overpayment in the various contracts being handled .

For instance in the construction of Asa Dam about N58 million was overpaid to the contractor which the Committee ordered refund.

On the construction of mini–water scheme at Ajinapa, Orire local government in Oyo state N187 million was over paid to the contractor

Also, on the construction of the
construction of mini-water supply scheme at Ipetu–Ijesha, Osun State, a total N37 million was paid for the contingency, compensation, purchase hilux vehicles that was not cited on ground. .

In addition, N110 million was over paid for the contract of Agbado- Isoye Ogun state

The Committee also observed that Toyota Hilux vehicles were purchased and provided for the contractors part from the money collected for the contracts by the contractors and in addition contingency fee was paid for all contacts which put question to the authenticity of the payments made by the agency.

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