N450m contracts scam rock Ogun – Osun River Basin

Alleged contrats inflation of about N450million by officials of Ogun – Osun River Basin Development Authority (OORBDA), came to the fore Tuesday when report to that effect was considered by the Senate Committee on Public Accounts.

The Office of Auditor – General of the Federation had in the 2016 Audit report forwarded to the committe , alleged contracts inflation of about N450million by management of the River Basin on construction of water dams, overhead tanks etc.

The report specifically alleged that in the construction of Asa Dam about N58 million was overpaid to the contractor that handled the project while over N187million was overpaid to the contractor that handled construction of mini–water scheme at Ajinapa, Orire local government in Oyo state.

Others as stated in the report, are N37million over payment made on the construction of mini-water supply scheme at Ipetu–Ijesha, Osun State under sub heads like contingency payment, compensation, Hilux vehicles purchase etc, which couldn’t be proved.

Overpayment of N110 million was also alleged against the Rivers Basin on the execution of over head tanks contract in Agbado- Isoye, Ogun state.

All in all, the report stated that 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.

It stated further that Toyota Hilux vehicles were purchased and provided for the contractors from the start of the contracts as well as contingency fees paid which put to question, claims of similar payments later made by officials of the Rivers Basin.

Irked by the report, the Senate Committee chaired by Senator Mathew Urhoghide (PDP Edo South), demanded explanations from officials of the Rival Basin on all queries raised.

But the Managing Director of OORBDA, Engr. Babalola Olatunji, who was represented by some directors, couldn’t convince the committee members not to sustain the queries.

Consequently the committee through the Chairman, Mathew Urhoghide, directed that the Managing Director must appear in person to defend the queries at a date to be communicated to him later.

“You said your MD is on admission in one of the Hospitals in Ogun State , while wishing him speedy recovery , he must appear before this committee at a later date for convincing explanations on all queries raised , failure of which will lead to adoption of the Audit report against your agency by the Senate,” he said.