Minister of Works, Senator Dave Umahi, has been accused of violating public procurement laws by directing N60.1 billion in federal road contracts to a company owned by a close political loyalist.
Three days after the authoritative Nigerian daily, BusinessDay, published details of its investigative report
on the issue, Umahi is not known to have issued any response. Below are details
of the key allegations surrounding the multi-billion naira payouts:
The Loyalist Connection: The
company, Reinforced Global Resources Limited, is managed and co-owned by
Joshua Okoro, a former student leader who actively campaigned for Umahi's 2023
Senate bid.
Suspicious Timeline: The firm was incorporated in
2011 but had no history of federal contract payments until April
2024—roughly eight months after Umahi assumed office as the Minister of Works.
Since then, the Ministry of Works has been its sole federal client, issuing 27
separate payments totaling N60.08 billion between 2024 and 2026.
Procurement Law Violations:
Procurement experts note that the frequency and structure of advance payments
made to the firm appear to directly breach Nigeria’s Public Procurement Act
2007 and the Fiscal Responsibility Act. The law restricts regular advance
payments to 15 percent, whereas the firm reportedly received multiple
consecutive advance disbursements.
Ongoing EFCC Scrutiny: The
massive contract awards were granted despite the company being involved in an
active case with the Economic and Financial Crimes Commission (EFCC).
Major Projects Funded: The bulk
of the funds went toward major southeastern road developments, including N30.06
billion for the Enugu-Abakaliki-Ogoja Road and N15.72 billion for the
Ugep-Abaomoge-Okposi Road.
Following the revelation, the anti-corruption group, the Human and
Environmental Development Agenda (HEDA Resource Centre), called for an immediate,
independent investigation into the Federal Ministry of Works and its
relationship with the contractor.
However, neither Umahi nor Reinforced Global Resources Limited or the
Federal Government and its anti-corruption has considered it necessary to
comment on the scandal.
Culled from Newsexpress.
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