Nigerian Companies Drag Federal Government to Court Over a N91.5 Billion Deal with Chinese Company

• Nigerian companies have dragged the federal government of Nigeria to court for contract awarded to Chinese company
• Minister of Transportation, Rotimi Amaechi and the Attorney-General of the Federation, Abubakar Malami (SAN) were specifically called out in the suit
• They businessmen are alleging there was no due process in the award of 190 Km Rail Line construction to a Chinese firm

A group of companies have dragged the Minister of Transportation, Rotimi Amaechi and the Attorney-General of the Federation, Abubakar Malami (SAN), to Justice Ahmed Ramat Mohammed of a Federal High Court in Abuja.

The disputed contract is for the reconstruction of the narrow gauge track from Minna in Niger State to Baro with an extension to the Baro River Port at N91.5 billion and a completion period of 36 month

The Federal Ministry of Transportation and the benefitting firm, China Civil Engineering Construction Company were joined as defendants in the suit.

Their grievances is that the contract was awarded without due process of law, The Punch reports.

Breakdown of the case

The Guardian reports that the companies in the suit marked FHC/ABJ/CS/1426/2021 were Duluidas Nigeria Limited, Duliz Dredging and Construction Limited and Consortium of Duluidas Nigeria Limited, Duliz Dredging and Construction Limited/Hebbelyixin Fastener Company Limited, China.

In their writ of summons issued by their lead counsel, James Okoh, the plaintiffs were asking the Federal High Court to cancel the letter of “No Objection” issued by the Bureau of Public Procurement in favour of CCECC for the award of the N91.5 billion Rail Line Contract in breach of procurement laws and re-issue same in their favour.

The bidding proces

The plaintiffs prayed the court for an injunction restraining all the defendants from awarding or purporting to award the contract to the Chinese firm or any third party on the basis of the flawed bidding process.

In the alternative, they sought an order setting aside any purported award on the basis of the flawed and heavily compromised bid process by the Nigeria Railway Corporation with the concurrence of other defendants.

They also asked for an order restraining the Minister of Transportation or any of his agents from presenting the CCECC to the Federal Executive Council for the purpose of the award of the contract.

We are also experts

In their statement of claim, plaintiffs claimed to be seasoned and experienced experts in the rehabilitation of rail lines and had executed 2211 KM Zaria to Kaduna Rail Line reconstruction for the Federal Government.

They asserted that by a letter of February 16, 2021, the Federal Government approved a list of companies including them as qualified to participate in the bidding process for the award of the contract.

After a private tender, the NRC on February 23, 2021, invited them to submit a financial bid for the job and they emerged successful along with other companies.

The plaintiffs alleged that the Minister on May 19, 2021, wrote the BPP for a Certificate of No objection in favour of CCECC in the sum of N91, 580, 101, 710 and that by a letter of June 9, 2021, BPP rejected the Minister’s request on the claim that such Certificate can only be issued to them on the basis of their quotation of N76.7 billion to execute the job.

Nigerian governors react to Malami's support for Paris Club consultants

In other news, governors under the Nigerian Governors' Forum had condemned Malami's support for consultants who worked to secure the retirement of the Paris Club Refund.

The governors said it is unbelievable the AGF who should be protecting the interest of Nigerians and the country is bent on paying consultants $418 million.

According to the governors, the action by the AGF does not speak well for someone who should be representing his country.

Source: Legit.ng