Connect with us

News

We’ll Award Contracts, Borrow Till May 28 Midnight – FG

Published

on

The Federal government has replied critics over the unending award of contracts and external borrowing, a few days before the expiration of President Muhammadu Buhari’s administration.

Minister of Works and Housing, Babatunde Fashola, declared that the administration of President Muhammadu Buhari will continue to award contracts till midnight of May 28.

Fashola described as ‘juvenile conversations’ questions by critics on why the Buhari administration was still awarding contracts when it had few days to leave power.

The former Lagos Governor, who spoke in Akure when he flagged off construction of the 49km Akure-Ado-Ekiti road, said the National Assembly has passed a budget for the administration to work.

Fashola explained the former contractor engaged to construct the road could not start work because the Sukuk fund that was to be used only pay for work done and not pay mobilisation to contractors.

President open letter
He disclosed that the contractor has sued the Federal government for N10bn.

Fashola said the road was being constructed by the Nigeria National Petroleum Company Limited under the Tax Credit Policy at a cost of over N90bn.

According to the Nation Online Report, the Minister said he rejected proposals to upgrade and carry out remedial repairs on the road because he wanted the road dualised.

Calling on the incoming National Assembly members to review the Procurement Act, Fashola said the present processes involved in the Procurement Law slowed down development.

On the country’s N77trn debt burden under Buhari, Fashola said the debt incured by many state governments were included.

He said the alternative to borrowing was increased taxation.

According to him, “We want the road and we say Buhari is borrowing too much. The road is funded through Tax Credit Policy. It means the FG has forsaken some revenue for you to have the road.

“We will be leaving behind sustainable development. We are still awarding contracts. We are still working.”

Recent Posts

Trending