Senate orders refund of N450m in Ogun-Osun Rivers Basin contracts overpayment

The upper chamber of the National Assembly has revealed how officials in the Ogun-Osun Rivers Basin Agency inflated the construction of water dams and overhead tanks to N450 million.

The over paid projects are located in 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.

While testifying before the Public Account Committee, officials of the agency were unable to justify the allegations of overpayment levelled against them.

Members of the committee also criticised the agency for consistently overpaying contractors in the various projects being handled.

The contractor was overpaid N187 million for the construction of a mini-water scheme in Ajinapa, Orire local government, Oyo State, the committee revealed.

Read also: Senate invites Emefiele over naira depreciation

In addition, N37 million was paid for contingencies, compensation, and Hilux vehicles were purchased during the construction of the mini-water supply scheme in Ipetu-Ijesha, Osun State.

In the Agbado-Isoye project, N110 million was overpaid. The committee also observed that Toyota Hilux vehicles were purchased and provided for the contractors apart 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.

The Senate Committee on Public Accounts, chaired by Matthew Urhoghide, has however ordered that the funds be refunded.

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